The Tax Reform Act of 1986 brought that to a crashing halt with the enactment of the passive activity loss rules (Section 469) which was a blow to real estate values.
Some now predict that the blow to Cyprus's financial sector, which accounts for about half of economic activity, combined with an existing credit squeeze, will send output into a tailspin.
"If we do not do this kind of stimulus, the deficit will get worse because of the loss of economic activity, " Frank told CNBC when asked whether this kind of spending will just blow a hole in the already ballooning deficit.