Stephen S. Ziegler - Page 15

                                       - 15 -                                         
               in his investment, even if he is an investor in the                    
               same project as a taxpayer who has not yet paid in his                 
                    Hence, limiting the exemption to investors who                    
               have not yet paid in over 50% of their investments                     
               reflects a purpose antithetical to our system of juris-                
               prudence, that is, perpetuating a fraud by having the                  
               government pay a further portion of the consideration                  
               it promised to persons who had not yet completed their                 
               performance in reliance on the government’s promised                   
               consideration to the persons who had already fully                     
               performed in reliance upon the government promise.                     
               [Reproduced literally.]                                                
               In order to prevail on his equal protection argument,                  
          petitioner must show that the transitional rule was not premised            
          upon a rational basis, see Regan v. Taxation With Representation,           
          461 U.S. 540, 547-548 (1983), and instead was premised upon an              
          impermissible basis such as race, religion, or the desire to                
          prevent the exercise of petitioner’s constitutional rights, see             
          United States v. Berrios, 501 F.2d 1207, 1211 (2d Cir. 1974).               
               We reject petitioner’s argument that the transitional rule             
          violates his equal protection rights under the Due Process                  
          Clause.  In enacting section 469, Congress considered whether any           
          relief from the application of section 469(a) was appropriate.              
          After giving consideration to that question, Congress decided to            
          provide in the transitional rule certain relief, but only for               
          certain taxable years, to certain taxpayers in certain circum-              

               9Congress also decided to provide in sec. 469(m) certain               

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next 

Last modified: November 10, 2007