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.
Reg. 39c 5 lb. box Purity
EPSON SALT
Reg. 13c Elinor. Full Pint
RUBBING ALCOHOL
Reg. 79c Oral or Rectal Fever
THERMOMETER
29'
9
W. BROADWAY & CHARNELTON
Across from Bon Marche Russells . . . Adjacent ro Sears
OPEN 7 DAYS A WEEK
''FtTTvt!l?., PED SHOPPING CONVENIENCE
Chromed All Room
20c and 29e CUTEX
NAIL POLISH
You'll find all the top fashion
shades here! Cute Tomato, Alad
din Fire, Flaming and many
Others. A color for every cos-'tume.
CHOICE
YOUR
11 j FuU View Framed Z I
1 1 nnnn ' III
$5.95 Jgpr "UM"
Value 7 MIRROR
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a .w .
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6V2 OZ BAR LANOLIN
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REG. 89c 14 OZ. TIN WOLCH'S
MIXED NUTS
REG. 15c MARS
CANDY BARS
Chromed All Room
Space Saver f
3 enameled shelves,
towel ring. Floor to
ceiling. '
$9.88 $788
Value I
Bathroom
Towel Pole
Floor to ceiling. Ad
justs from
7'8" $J98
to 8'2" J
2-Piece
Bath Mat Set
Rayon Chenille
Wash-fast $198
colors. 1
REG. 98c WOMEN'S
UMBRELLAS
w
REG. 1.19 5 SEW TOP QUALITY
Household BROOM
REG. 1.98 ASSORTED
CERAMICS
llif
Spalding
Goli Balls
Don Fair-
Pack ot 3.
field Model,
$3.00
Value
$219
Dart Game
3 targets. 18" size. Base
ball game tiqQ
side. W
Basketball
Eagle, official size and
weight.
rubber.
Weather
Proof.
All
$198
Choose from a deJighlu
assortment of . . .
. Cosmetic Bag Sets
in Prints and Solids
Colorful floral prints
dark background.
Some with jewel trim,
some with zippers, gold
frames.
J?;
Pi
Gift f 1
Boxed v '. wyil
$2.98 ' tT'
Value Wxkrff
on light or ;
$167-1 ItSJ
30c Wildroot
Rose Hair Dressing
or Brilliantine
at
Quality hair products
thrifty low price.
Your
Choice
19
100 Tussy
Wind 'n Weather
Lotion
Triple action, soothes,
softens & moisturizes.
Thriity
Priced
50
Women's Orion-Acrylic
Bulky Knit Sweater
Orion-acrylic knit to
wear like iron, and
wash without worry.
36-40
$098
w
Boys' Cotton
Jackets
Washable, wind
proof, zippcrerj.
Sizes
6-16
$298
Fitted Cotton Percale
Crib Sheets
.: i i-
rnntfpi
crib neat till
1 changed. Snowy white.
IT RA aaaaa
Reg.
99c
36 x 30 Inch
"Big Ben"
Kites
Light in weight
yet rugged . . .
Thrifty Friced!
iun for
all ages
14"
36 x 30" Plastic
ORBITEER KITES -11
x 11 x 28" Paper
BOX KITES
300 Foot
KITE TWINE :
29c
29'
9
'n Stand
Car Seat
With steering wheel.
Keeps infants safe!
$J29
$7.99 Fostoria Electric
Toaster
. m
Sit
3.95 Value Acrilan Acrylic
Bed Pillows .
20 x 26"
Fruit of the Loom
Choice of
ticking. Soft
and resilient.
$289
72x90" 3 Pound
Beacon Blanket
Rayon and acrylic
blend. Wide ace
tate binding.
Choice of beauti
ful colors.
$098 1
$1.29 Jumbo Plastic
Garment Bag
Quilted vinyl top. See thru
sides. 29" zipper.
Colors. Holds
18 Garments
Stewart Hall
Stationery
100 sheets, 80
e n v el o p e s.
Fine quality
paper.
aaw
.1 f
-sat m v I j ar
3
2 slice automatic
pop -up model
with crumb tray.
$C88
$9.88 Universal
Steam Iron
Thermostat temp,
control. Large
water capacity.
707
Model
rr
Set of 6 Etched
Glass Stemware
Beautiful and spark
ling. A complete assortment.
Reg.
1.59
$133
$16.88 Universal
Electric Percolator
$088
Coffeematic .
immediately,
signal.
"Happy
Home"
. . perks
Redilite
f14.
87'
Mosaic Top Tables
Choice of finishes
and colors.
$4.50
Value
$067
Reg.
19.88
4-Transistor
Tape Recorder
'IncItiHp pfftkrr, re?l. am- Cl AQ O
pi.ftr. kth Mrphrni. Nd I f
nn cord or electric outlet. XU
Extra Tape, 225' Rnll 49 c