Medford mail tribune., February 13, 1959, Image 18

A MAIL TRIBUNE, Medford, Oregon, Friday, February 13, 1959
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Khrushchev's Plans Seen Based
On Confidence of World Peace
Editor's note: The 21st Commu-,
nlt Party Congress which wound
iid in Moscow last week was a
milestone in Communist history. In
the following dispatch, the second
of three, Henry Shapiro, a veteran
of 25 years in the Russian capital,
tells of the soviet war macnine,
By HENRY SHAPIRO
Moscow-flJPD-Nikita Khrush
chev's staggering economic
plan on which he has staked
the entire future appears
based on his confidence there
will be prolonged peace.
If he is not thinking of
genuine peace in the sense of
world tranquility and normal
relations with the capitalist
world, then he is thinking at
least of the absence of a shoot
ing war.
He would hardly have un
dertaken the enormous long
range construction program,
the bold decentralization of
industry, the conquest of the
virgin lands and the partial
reduction of the armed forces
if he thought war was' prob
able in the near future.
The Soviet' confidence on
the likelihood of continued
peace is based on:
.-Firstly, the awareness of
its own strength, if not mili
tary superiority over the
West;
-Secondly, the realization
of the universally suicidal
character of modern atomic
-And
thirdly, belief that
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people in the West as well as
the neutral countries oppose
war.
War Profiteering Impossible
The major theoretical con
fession on this final point was
made by Anastas Mikoyan,
when he admitted that in the
United States, businessmen
and industrialists no longer
can profiteer from war.
Whatever its motivation,
the Soviet Union is pursuing
a parallel program of econom
ic development and relentless
armed preparedness.
While the process of match
ing the American standard of
living is still in the blueprint
stage, the Russians appear
convinced that militarily they
have already outclassed tne
United States.
In November, 1957. Khrush
chev told this correspondent
that the Soviet Union enjoys
absolute rocket superiority
and possesses sufficient weap
ons to knock out European
bases and deliver mortal
blows to the continental
United States."
It already had a prototype
inter - continental ballistics
missile then, and now Khrush
chev has informed the Cpm
munist Party Congress that it
is being produced on a "serial
basis."
Khrushchev was rhetorical
ly answering western skeptics
HOUSE?
People
By Jimmy Hatlo
who doubted that Russian
ICBMs had reached the opera
tional assembly line.
Defense Minister Rodio Mal-
inovsky went a step further
before the Congress in boast
ing of the ICBMs "pinpoint ac
curacy."
He won applause by recall
ing the accuracy of Soviet
rocketry, which has an artifi
cial planet orbiting around
the sun.
Western Arms Too Short
'Gentlemen, your arms are
too short," Malinovsky chided
the West. He also disparaged
the relatively outmoded in
struments of warfare" of the
western world.
"No anti-aircraft can halt
the intercontinental ballistic
missile," he said.
Earlier Soviet military
spokesmen had verbally duel
ed with American naval lead
ers on the effectiveness of the
U. S. fleet, declaring that the
fleet was no longer invulner
able. The Soviet Union is known
to possess a powerful subma
rine fleet equipped with nu
clear weapons which "' can
roam the oceans and hit con
tinental targets.
Last year the Russians
launched an atomic - powered
icebreaker, but have not yet
indicated whether they have
an atomic submarine.
Aside from the rockets
made since the end of the
war, the Soviet Union has de
veloped long-range jet bomb
ers.
Foreign reports that the
Russians have tested an atom
ic airplane could not be con
firmed here, but last year the
Soviet press promised that
"before long" an atomic air
craft would be able to fly
non-stop around the world.
The Congress heard the
latest pronouncement in prog
ress in the nuclear field from
academician Ivan Kurchatov,
a top Soviet expert in guided
nuclear reactions.
Belter Nuclear Weapons
Referring to the recent nu
clear tests, which the Russians
resumed last autumn, Kurcha
tov said they were "highly
successful and demonstrated
the high effectiveness of sev
eral new principles worked
out by Soviet engineers and
scientists. The result is that
the Soviet Army has received
still more powerful, more per
fect, cheaper, reliable and
compact nuclear weapons."
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Suem's t
Most Common Types off Allowable Tax
Deductions Told by Commissioner
By DANA LATHAM
Commissioner of
Internal Revenue
(Written for UPI)
Washington -WIS- The Fed
eral government permits you
to deduct some of your ex
penses in figuring your tax
able income. In this article I
shall set forth for you some
of the most common types of
allowed deductions, with a
bit of explanation concerning
each.
The law says taxpayers
may deduct ' from their in
come, before they compute
their tax, some expenditures
Items Deductible
From Income Taxes
Washington -I1PD- Uncle
Sam lets you deduct from
your taxable income:
Retail sales taxes; medi
cal expenses, including eye
glasses and dentures, above
3 per cent of your income;
interest on a home mort
gage; and special school
ing for the mentally handi
capped or physical handi
capped. Also, dues paid to unions
and professional societies;
contributions to non-profit
schools, hospitals, church
es (including assessments)
and veterans organizations.
You may NOT deduct:
Expenses for social clubs;
hunting or fishing licenses;
auto inspection fees; trips
ordered or suggested for
change of environment by
your doctor; water taxes;
accidental loss of cash or
personal property (except
in cases of natural calamity
or theft); damage by rust
or gradual -erosion; loss on
auto trade-in; travel to and
from work; legal penalties
or fines and rent of your
home.
for physicians' and dentists'
services, state and local tax
es, contributions, interest pay
ments, the cost (to a certain
extent) of child care and cer
tain losses.
Although Russian military
dactrine scoffs at the theory
of "limited war," and places
the heaviest reliance on rock
etry, the Soviet Union is far
from neglecting its conven
tional forces.
Coincidentally, the Con
gress announced the reduction
of 300,000 men in the Soviet
armed forces, a- cut which had
been planned since 1957.
When added to earlier an
nounced reductions, this
brought the total claims of
cuts to more than 2.5 million
men.
The actual size of the So
viet armed forces is a matter
for conjecture. But given a
200 million population and
universal military service, the
regular army remains consid
erable even after these reduc
tions. Further, the Soviet Union
possesses experienced, well
trained fighting forces astride
the strategic frontiers in mid
Europe. It enjoys internal
lines of communication which
make it probably the most
fdrmidable mass army in
Eurasia, if not the world.
ROUSER
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gong, is 50 years old this year.
The first one was made in
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have routed Americans out of
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A taxpayer may take these
deductions in one of two
ways:
-In blanket fashion simply
by electing to take the stan
dard deduction of 10 per cent
of gross income.
-By listing each specific ex
penditure claimed as a deduc
tion. This is known as taking
itemized deductions. This
method is usually selected by
persons whose deductions,
when itemized, total more
than 10 per cent of their in
come. You may take the standard
10 per cent deduction even if
your deductible expenses
don't come to that much. But
you can't claim more than
$1,000 on the 10 per cent
basis. If your allowable ex
penses exceeded $1,000, you
may claim them in full by
listing them in itemized form.
If you file your tax return
on the card Form 1040A you
are electing to claim the
standard deduction. If your
income was under $5,000, you
determine your tax from the
table provided with the in
structions. It gives you the
10 per cent allowance. If your
income was $5,000 but less
than $10,000, you subtract
the 10 per cent allowance
yourself before computing
your tax in accordance with
the instructions.
One new type of deduction
that the government is allow
ing this year covers certain
types of education expenses.
Specifically, a taxpayer may
deduct education expenses in
curred primarily to maintain
or improve skills required in
his present job, business or
profession, or to meet require
ments to keep his present
position. , .
But, the expense is not de
ductible if its primary pur
pose was to qualify the tax
payer for a better job, higher
salary or new type of work
or to fulfill his general edu
cational aspirations.
For example, an auto me
chanic could deduct the cost
of a course in new types of
transmissions provided h e
took the course to improve
the skills required in his
present job or his employer
required him to take it.
Before you submit your re
turn, you will want to do a
bit of arithmetic on scratch
paper to determine whether
your expenses itemized would
exceed 10 per cent of your
gross income. To help you in
this computation, here is some
elaboration on the kinds of
expenditures that are income
tax deductible: .
Contributions - Deductible
if they go to religious, charit
able, educational,' scientific,
or literary organizations.
However, the organizations
must not be operated for per
sonal profit nor carry on
propaganda or lobbying in
Congress or other lawmaking
bodies. Political contributions,
whether to parties or individ
ual candidates, may not be
deducted.
Child Care - Deductible if
paid for care while the moth
er is working or actively look
ing for a job, or by men who
are divorced, legally separat
ed or widowers. The child
need not be the taxpayer's
own but must be a dependent
under 12 years of age. Also
eligible is any other depend
ent physically or mentally
unable to care for himself,
except the taxpayer's spouse.
Regardless of the number
of children being cared for,
you cannot deduct more than
$600, and of course only as
SELECTED
LUGGAGE
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Values
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Medford
much as you actually spent
if less than $600.
You may deduct as child
care amounts paid for baby
sitters when you go out social
ly, or money paid to your
children or dependents for
caring for your other child
ren. '
If you have a maid who
does general housework as
well as care for your children,
you may deduct only for the
part of her pay that repre
sents the time spent looking
after the youngsters. If you
claim a child care deduction,
you must submit details eith
er on Form 2441 or in a sep
arate statement.
Married women whose hus
bands are capable of self-sup
port must file joint returns
with their husbands in order
to claim the deduction for
child care. Further, such ex
penses must be reduced by
the amount, if any, by which
their combined adjusted gross
income exceeds $4,500. These
rules do not apply if their
husbands' are incapable of
self-support because of physi
cal or mental disability.
Medical Expenses - Basic
ally, ' you may deduct that j
part of medical and dental j
expenses which exceeds three
per cent of your income. If
either you or your wife were
65 or over before the end of
the tax year, you may claim
medical expenses for the care
of both without reduction by
three per cent of your adjust
ed gross income.
There are maximum limita
tions on the medical expense
deduction. Except where tax
payers are 65 or over and dis
abled, the deduction for medi
cal Expenses may not exceed
$2,500 multiplied by the num
ber of your exemptions (other
than age or blindness). In no
case may you claim more
than (a) $5,000 if you are
single and not the head of a
household or a surviving
spouse; (b) $5,000 if you are
married but file a separate
return; or (c) $10,000 if you
file a joint return or are a
head of a household or a sur
viving spouse.
If you are 65 or over and
disabled, are single or. mar
ried and file a separate re
turn, you may deduct medi
cal expenses not in excess of
$15,000. If you are 65 or over
and disabled and file a joint
return, the limitation is still
$15,000. However, if both you
and your wife are 65 or over
and both are" disabled, the
maximum allowance is
THE UNITED STATES NATIONAL BANK OP
$30,000, but not more than
S15.000 of the medical and
dental expenses of each may
be taken into account.
The list of deductible medi
cal items include payments to
physicians, surgeons, dentists,
optometrists, qualified psy
chologists and Christian
Science practitioners. Also ex
penses for diagnosis, treat
ment or prevention of disease;
hospital bills, nursing labora
tory services; eyeglasses, hear
ing aids, drugs - but only the
amount paid for drugs in ex
cess of one per cent of your
income medical and dental
supplies, including false teeth
and artificial limbs; ambu
lance charges; and health in
surance plans for medical
care. Your deductions for
medical expenses must be re
duced by reimbursements re
ceived during the year from
health insurance and. similar
sources.
Storm Losses - Generally,
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URUCKER
Happy birthday, Oregon! You've been growing and making
a name for yourself throughout our nation and the world
since that Valentine's Day in 1859 when you became a state.
The 100 candles that are burning on your cake this year will
light a challenging future. As Oregon's only hGme-owned,
gtateiride bank, we eagerly take this Centennial opportunity
to proclaim our love, our pride and our unqualified confidence
in the future of our state.
the deduction allowed for
storm, flood or other damages
to your property is the dif
ference between the proper
ty's value just before the dam
age and its worth afterwards
(before you make repairs).
The rule applies on loss of
anything from a bush to the
whole house. The cost of re
pairs or replacement may not
be deducted -just the loss in
value. However, such costs
may be used as a measure of
the decrease in value of the
property if they do no more
than restore the property to
its condition immediately be
fore the casualty, and do not
add to its value, utility or
useful life. You may not claim
a loss greater than the cost
or other adjusted basis of the
property.
Interest Payments - Your
interest on a mortgage, per
sonal loan, installment pur
chase or back taxes may be
deducted.
When you have an install
ment purchase, the law pro
vides a formula for comput
ing what you may deduct as
the carrying charge (a form
of , interest). First, find how
m cv
8
PORTLAND m- rii dPo,h intUr,f c.rpvntioi
jwHr owed on the pur
chase at the beginning of
each month. Add these
amounts, divide by 12 and
compute 6 per cent of that
figure. .The final answer is
what you may deduct, pro
vided it is not more than the
total carrying charge for the
year.
Taxes-Most state and local
taxes directly levied on you
may be deducted. These in
clude income, real estate, per
sonal property and sales
taxes. They do NOT take in
Federal sales and excise
taxes; Federal social security
or income taxes; hunting or
dog licenses; water assess
ments or automobile inspec
tion fees.
A reminder: If your item
ized deductible expenses do
not equal 10 per cent of your
income, you are better off to
take the standard 10 per cent
deduction.
(Next: 'Special' Income.)
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Main and Central
Records
n
RECORD CITY
111 North Central II I
MEDFORD BRANCH