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About Eugene register-guard. (Eugene, Or.) 1930-1983 | View Entire Issue (Jan. 21, 1963)
Page 4A EUGENE HEGISTER GUAUD, Monday, Jan. 21, 1963 Jobs, Profits, Taxes, Pensions, Cost of Living By SAM DAWSON Of tht Auoclatad Press Federal Budget's Long Reach Touches Each Citizen . EDITOR'S NOTE Don't let those big figures scare you off the federal budget real ly is about you. In this, first of two self-contained articles on the budget, Sam Dawson, AP business news analyst, dis cusses how the budget af fects the economy, especially this year. NEW YORK The federal budKet is a hefty compilation of fieuri'S and estimate! so "implex f hat ven an electronic wt .n.gni flinch at sight of iCSi 1 3BBlt''t -' the lives of all citizens. Depending on what ct? finally docs about the one suu mitted by President Kennedy, the budget can touch you in many ways your job, your profits, your taxes, your pen sion, even your cost of living. The formal budget which the President is required by law to present to Congress each Janu ary may affect you less than the actual cash budget which shows what the Treasury cxi:' to take in and to pay out. The cash budget is about one-fifth larger than the administrative or formal One. And it estimates a deficit of $10.3 billion in the fiscal year starting July 1. The Treasury would thus be putting that much more money into the economy that it would be taking out. This could spur economic growth, provided it didn't set off price inflation that would nullify the benefits. If the budget proposed a sur plus, it would mean taking more out in taxes than the Treasury was putting back in by spending. This could brake any inflation. But under present it might feed a re- ii rfl''"'"iifa" li 'I nobody wants, orruHirT'Tftjects. The parts, as wen whole, of the budget slfecl High taxes, for example, take out of the stream of industry and trade money that might be used by consumers and business firms to buy goods and services. The argument for cutting axes, as the new budget pro poses, is that lower taxes will spur the economy. This could create jobs or lengthen work weeks. It could mean more prof its for business, higher incomes Scientists To Witness Solar Eclipse ALWAYS RECORD ENTERTAINMENT, TRAVEL EXPENSES. Nots Expenditures oi You Go. Business Gifts Over J25 Won't Be Deductible, With Few Exceptions. Income Tax Primer I Note Expenditures ; As Soon as Possible "t EDITOR'S NOTE This is the first of eight articles in the Newspaper Enterprise Assn. Income Tax Primer, for readers who want more inonnatton than ij supplied in the official instructions. By RICHARD A. MULLENS and CHARLES W. SC110K NLMAN Of Newspaper Enterprlie Ann. As of Jan. 1, 1063, every businesman, professional man and talesman who wants to continue deducting the cost of entertain ing an associate, client, or customer or the cost of travel, meals and lodging on the road will have a lot of adjusting to do. Because of the 1962 tax low, not only are the rules regarding the types of such travel and entertainment tightened, but for the first time, record keeping or other substantiation will be a legal necessity. , . For example, if the businessman does not keep proper rec ords or have someone else willing and able to testify to the amount, time and place of the entertainment expense, then the Internal Revenue Service can disallow a deduction. A later income tax primer article will discuss these record keeping rules in detail. But remember that unless you have the proper records starling Jan. 1, no matter how directly an entertainment expense relates to your business, you may be denied a deduction. The new law makes the following changes: An entertainment expense will not be deductible unless the taxpayer establishes that it is directly related to or asso ciated with the active business. That Is, the entertainment must he conducted cither where there is an opportunity for business discussion, or it must precede or follow what the law calls a "substantial and honafide business discussion." Many club dues will not be deductible at all unless over nnehalf of the use of the club during the year is in the further ance of the taxpayer's business. And then, dues are deductible only to the extent directly related to business. i Business gifts will be deductible only to the extent of $25 per recipient except for certain promotional advertising materials. Fourth, no longer will the entire amount you spend for meals and lodging while away from home be deductible only because the primary purpose of the trip is business. No travel expense which is "lavish or extravagant under the circum stances" will be deductible. Furthermore, the Internal Revenue Service will publish rules for allocating the expenses of a trip of more than one week's duration to business and pleasure. The new law will permit a deduction for only the business portion of such trips, despile the primary business purpose. However, the new law will not require an allocution to pleas ure where the trip lasts less than one, week or where less than 25 per cent of the time of any trip is shown to he devoted to pleasure. There is technical exception to these rules for employes who arc reimbursed for such expenses but then, of course, the employer must abide by the new rules or lose his tor its) deduc tion tor the amount reimbursed. These new rules apply to expenses incurred after Jan. 1, 1963. Q If the membership in a country club entitles the mem ber's entire family to use the facilities of the club, does his family's use count when determining whether or not the club wis used in the furtherance of his business? A Yes, and if over one-half of the use of the club is by him and his family for personal purposes, none of the dues will be deductible for 1963. Q How about dues in civic organizations like Kiwanis? Are such dues subject to the strict new lesls? A No, they are only subject to the old "ordinary and nec essary" business expense test. The same is true of professional associations, and of union dues. Frightening Asthma Attacks End In Minutes As New Formula Unblocks Lung Passages Fast New Medical Formula Restores Free Breathing Without Vaccines, Shots Or Narcotics. Calms Anxiety. No Prescription Needed. KewVork, N.Y. (Special) A team ni adanusui has announced a new formula that atop frightaning aathma attack in rmnutea and un blocks lung paaaagva iul. Medical taata pruv this formula promptly restorea free breathing, eo calms aniiety and nlievte the worst aymptoma of aathma the atraimng for breath, the gasping, the wheel ing, the terrible fear of suffocation. AH without vaccinee, painful shots or hablt-fornungdruirs.Tt.ia formula kl at. safe when used as directed, it can be sold u-tthout prrtenptiom in bay tablets called RUON1T1N. Doctors know that when asthma atrikea.brea thing tubeabecomeswol- Iru, lung paaMgre become blocked, eo air la "trapped" inside lungs and leas and leas okyg?n can enter. Now BUONIT1N, with two asthma reliev ing medicines that doctors preecriba for their paueuta, acta quickly to open bronchial tubes and loosen the mucus that blocks lung pamagfla. Trapped air is released and new vital oxygen enters the lungs. The result is: free breathing to restored, tension eased and so fears are calmed in minutes. Su fferera can bow look forward to reetiul sleep. Get B RONTON available at aO drug atoree lutOioui praecrurfMA. BURBANK, Calif. Iff) A team of four experts, hoping to learn the exact shape of the Moon for manned lunar flights, is traveling 10,000 miles to wit ness a 37-second event. The event is the Solar eclipse Jay. For 37 seconds the Mooir-ragaBa'elv within a bright rim of iSilSi'iirmit- ting measurements not pa3Rg8r!$&3S nui many ucinuse me cm ill a shadow prevents seeing the Moon completely illuminated. The team, headed by Lau rence Stoddard of the Lunar and Planetary Sciences Labora tory of the Lockheed-California Co., plans to set up telescopes and cameras near Oudtshoorn, about 250 miles east of .Cape town, South Africa. This spot is on a 25-mile-wide belt across the southern hemisphere from which the full eclipse will be visible. Stoddard photographed a sim ilar annular ring-shaped eclipse last July in Senegal, West Africa. He reported that Rus sian astronomers camped 41 iu : miles away were rained out and got no pictures. Knowledge of the exact shape of the moon will give us additional information on the effects of moon gravity," Stod dard said before leaving for Africa. "This information is of great importance in planning lunar landings and computing the lifetime of manmade ve hicles orbiting the moon." for individuals, and more in centive for both to get going. Spending programs affect all taxpayers and countless indi viduals who receive money di rectly government pay checks, veteran benefits, jobless com pensation .or persons whose jobs depend on government or ders. The specialized govern ment spending programs touch many communities as well as industries. Some of the spend ing is for loans or public works which may return money to the Treasury and to the commu nities. So that leaves the neat prob lem: Just where do the benefits from spending offset the drag of taxes on the economy? And in the case of the present budget, there's the problem of the effect of a $10 billion or more Treasury deficit on the economy. ' Much of the effect of the budget on the value of the dol lar and the cost of living de pends on how the deficit is fi nanced. If the Treasury raises the $10 billion or so by selling short term securities to the banks, the supply of money and credit would be inflated, and perhaps with bad effects despite the cur rent excess of labor and of industrial capacity. If the Treas ury sells long-terra . bonds to savers, whether individuals or institutions, who will hold onto them, monetary inflation would be sidestepped. And there's the administra tion's argument: The deficit can trigger an economic growth that in itself will wipe out Treasury deficit after a year or two. Tuesday: The different kinds of budgets and their purposes. Debris Removal Aid Available Lane County farmers whose fields, orchards, woodlots or streams accumulated debris dur- j ing the Oct. 12 storm may get federal aid in paying for its re moval. ! But they have to register by Jan. 25 to receive the aid. Reg istration point is the Agri cultural Stabilization and Con servation Service (ASCS) of-J fice in the Lane County Court-' house. i George Woodworth, manager: of the county ASCS office, said the federal government will pay , up to 80 per cent with certain variables and dollarsper-acre limitation of the cost of debris j removal. ' fr Convertible Tops Seat Covers Boat Topi fa Truck Cushions GIL'S SURE-FIT STORE 7th & Blair Blvd. "Ws I I iC .-ensiVS IjJilliinis a 'r II I II fff 1 Clearance Feces! Prices Good THKiTTftimSDAY WHILE STOCRi TKVHt-S Plus Fed. Tax Limit Rights Reserved House Group Hearings Set On Tax Bill WASHINGTON IB The House Ways and Means Com mittee will begin hearings on President Kennedy's tax pro posals Feb. 6, with Secretary of the Treasury Douglas Dillon the prospective lead-off witness. Secretary of Commerce Luther H. Hodges and Secretary of La bor W. Willard Wirtz will fol low Dillon. Spokesmen for business and labor also will appear in the six weeks of hearings now envi sioned. They will be followed by about two months of discussion and drafting before a bill is ready for the House to consider. If it passes, a similar procedure will begin in the Senate. The President asked for a se ries of tax cuts to eventually total $13.3 billion a year. He favors several changes in the tax laws which he claims will recoup about $3 .5, billion in ad ditional revenue. TUNE IN 6:30 P.M. WEDNESDAY CHANNEL 9 - KEZI For The Stars Of Grand Olo Opry On OREGON OUTFITTERS COUNTRY SHOW Damned By What You Say? A noted publisher in Chicago reports a simple technique of everyday conversation which can pay you real dividends in social and business advance ment and works like magic to give you poise, self confidence and greater popularity. According to this publisher, many people do not realize how much they could influence others simply by what they say and how they say it. Whether in business, at social functions, or even in casual conversations with new acquaintances, there are ways to make a good im pression every lime you talk. To acquaint the readers of this paper with the casvto tollow rules fcr developing skill in everyday conversation, the publishers have printed full de tails of their interesting sclf- j training method in a new book. "Adventures in Conversation." which will be mailed free to i anyone who requests it. No ob ligation. Send your request to: Conversation. 83i Diversity Parkway. Dept. ,1281. Chicago 14, III. A postcard will do. 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