Some analysts are pressing Congress to reform the corporate alternative minimum tax, promising substantial benefits to the economy by so doing. The tax bill now under consideration by House and Senate negotiators would repeal the depreciation adjustment for property placed in service after December 31, 1998.

The AMT, first enacted in 1986, seeks to ensure that all companies pay taxes -- regardless of their net income.

• Under the AMT, a portion of the value of a company's investments in new equipment is added to the company's taxable income base.

• Critics say that portion is taxed even though the investments are not actually income -- and may not generate income immediately.

• It has been estimated by McGraw Hill/DRI that reform of the system would add approximately $15 billion to U.S. gross domestic product by 2002.

Proponents claim the repeal would ensure that companies are not taxed on their job-creating investments.

Source: M. Anthony Burns (CEO, Ryder Systems, Inc.), "Reward Job Creators..." Wall Street Journal, July 18, 1997.