The Tax Reform Act of 1986: Impact On Hospitality Industries

In her discussion - The Tax Reform Act Of 1986: Impact On Hospitality Industries - by Elisa S. Moncarz, Associate Professor, the School of Hospitality Management at Florida International University, Professor Moncarz initially states: “After nearly two years of considering the overhaul of the federal tax system, Congress enacted the Tax Reform Act of 1986. The impact of this legislation is expected to affect virtually all individuals and businesses associated with the hospitality industry. This article discusses some of the major provisions of the tax bill, emphasizing those relating to the hospitality service industries and contrasting relevant provisions with prior law on their positive and negative effects to the industry. “On October 22, 1986, President Reagan signed the Tax Reform Act of 1986 (TRA 86) with changes so pervasive that a recodification of the income tax laws became necessary…,” Professor Moncarz says in providing a basic history of the bill. Two, very important paragraphs underpin TRA 86, and this article. They should not be under-estimated. The author wants you to know: “With the passage of TRA 86, the Reagan administration achieved the most important single domestic initiative of Reagan's second term, a complete restructuring of the federal tax system in an attempt to re-establish fairness in the tax code…,” an informed view, indeed. “These changes will result in an estimated shift of over $100 billion of the tax burden from individuals to corporations over the next five years [as of this article],” Professor Moncarz enlightens. “…TRA 86 embraces a conversion to the view that lowering tax rates and eliminating or restricting tax preferences (i.e., loopholes) “would be more economically and socially productive.” Hence, economic decisions would be based on economic efficiency as opposed to tax effect,” the author asserts. “…both Congress and the administration recognized from its inception that the reform of the tax code must satisfy three basic goals,” and these goals are identified for you. Professor Moncarz outlines the positive impact TRA 86 will have on the U.S. economy in general, but also makes distinctions the ‘Act will have on specific segments of the business community, with a particular eye toward the hospitality industry and food-service in particular. Professor Moncarz also provides graphs to illustrate the comparative tax indexes of select companies, encompassing the years 1883-through-1985. Deductibility and its importance are discussed as well. The author foresees Limited Partnerships, employment, and even new hotel construction and/or rehabilitation being affected by TRA 86. The article, as one would assume from this type of discussion, is liberally peppered with facts and figures.

Quantifying the responses of calcareous periphyton crusts to rehydration: A microcosm study (Florida Everglades)

We examined the high-resolution temporal dynamics of recovery of dried periphyton crusts following rapid rehydration in a phosphorus (P)-limited short hydroperiod Everglades wetland. Crusts were incubated in a greenhouse in tubs containing water with no P or exogenous algae to mimic the onset of the wet season in the natural marsh when heavy downpours containing very low P flood the dry wetland. Algal and bacterial productivity were tracked for 20 days and related to compositional changes and P dynamics in the water. A portion of original crusts was also used to determine how much TP could be released if no biotic recovery occurred. Composition was volumetrically dominated by cyanobacteria (90%) containing morphotypes typical of xeric environments. Algal and bacterial production recovered immediately upon rehydration but there was a net TP loss from the crusts to the water in the first 2 days. By day 5, however, cyanobacteria and other bacteria had re-absorbed 90% of the released P. Then, water TP concentration reached a steady-state level of 6.6 μg TP/L despite water TP concentration through evaporation. Phosphomonoesterase (PMEase) activity was very high during the first day after rehydration due to the release of a large pre-existing pool of extracellular PMEase. Thereafter, the activity dropped by 90% and increased gradually from this low level. The fast recovery of desiccated crusts upon rehydration required no exogenous P or allogenous algae/bacteria additions and periphyton largely controlled P concentration in the water.

Exergoeconomic analysis of solar organic rankine cycle for geothermal air conditioned net zero energy buildings

This study is an attempt at achieving Net Zero Energy Building (NZEB) using a solar Organic Rankine Cycle (ORC) based on exergetic and economic measures. The working fluid, working conditions of the cycle, cycle configuration, and solar collector type are considered the optimization parameters for the solar ORC system. In the first section, a procedure is developed to compare ORC working fluids based on their molecular components, temperature-entropy diagram and fluid effects on the thermal efficiency, net power generated, vapor expansion ratio, and exergy efficiency of the Rankine cycle. Fluids with the best cycle performance are recognized in two different temperature levels within two different categories of fluids: refrigerants and non-refrigerants. Important factors that could lead to irreversibility reduction of the solar ORC are also investigated in this study. In the next section, the system requirements needed to maintain the electricity demand of a geothermal air-conditioned commercial building located in Pensacola of Florida is considered as the criteria to select the optimal components and optimal working condition of the system. The solar collector loop, building, and geothermal air conditioning system are modeled using TRNSYS. Available electricity bills of the building and the 3-week monitoring data on the performance of the geothermal system are employed to calibrate the simulation. The simulation is repeated for Miami and Houston in order to evaluate the effect of the different solar radiations on the system requirements. The final section discusses the exergoeconomic analysis of the ORC system with the optimum performance. Exergoeconomics rests on the philosophy that exergy is the only rational basis for assigning monetary costs to a system’s interactions with its surroundings and to the sources of thermodynamic inefficiencies within it. Exergoeconomic analysis of the optimal ORC system shows that the ratio Rex of the annual exergy loss to the capital cost can be considered a key parameter in optimizing a solar ORC system from the thermodynamic and economic point of view. It also shows that there is a systematic correlation between the exergy loss and capital cost for the investigated solar ORC system.