Clark Kent of the Daily Planet is reporting that the U.S. Congress passed legislation today to encourage investment, save American jobs, align employer and employee incentives, strengthen the banks, spread capitalism, thwart the bad guys, and ensure peace and prosperity forever (or at least until the next election). The new legislation, written in usual tax legalese, reads: Interest is not taxed if earned by a bank on funds loaned to a company to purchase its own stock and if those shares are contributed to the companys pension plan. The famous accountant John Grisham explained how the legislation might work: If Carolina Collard Company borrows money from Tightwad Bank, uses the cash to buy Carolina Collard Companys stock and then contributes the stock to its pension plan, then the interest Tightwad Bank earns on the loan will not be taxed.

As the Super(wo)man of Tax, you immediately see lots of opportunities and pitfalls associated with the legislation. Your assignment is to detail the issues, propose solutions, and prepare a memo to your boss.

Consider the legislation from the perspective of the employees.