J
MEDFOHD MAIL TRIBUNE. MEDFORD, OREGON
MONDAY. OCTOBER 22. 1962
f ; . .
.in, ...vi
Your Money's
Worth
By SYLVIA PORTER
Copyright. Hall Syndicatt, Inc.
THE NEW TAX LAWS' MEANING TO YOU - I
SUMMARY OF LAWS
This month, two major tax laws went on the statute
books of the United States laws which will affect millions
of taxpayers, both individuals and corporations, from coast
to coast.
Under one of the laws, the Retirement Act of 1963, all
self-employed professional and business men will, beginning
in 1962, be able to get special retirement plan tax breaks
for the first time. The benefits, to be similar to the special
retirement tax benefits until now limited to employes and
corporation executives, will be available to millions indi
viduals and partners, doctors and lawyers, accountants and
engineers, real estate operators and plumbers, independent
salesmen and bakers, etc.
Under the second of the laws, the Revenue Act of 1962,
businessmen are being handed a tax cut amounting to more
than $1 billion a year. The bonanza will apply to this current
calendar year of 1962 and will be available to the business
men without any reduction in the tax rates they pay on their
incomes.
For years Congress flirted with the idea of passing a
law permitting iax-sheltered retirement pensions for the
self-employed. By the time this last session got around to
passing the law, the original proposals had been revised,
refined, softened, hardened and mangled to the point where
the experts are just beginning io find out what was done.
And even the law's most ardent supporters admit their
astonishment that anything was done at all.
Almost from the day President Kennedy took office, Con
gress wrestled with the Revenue Act which it finally passed
at the end of the session. It also revised, refined, softened,
hardened and mangled the administration's original proposals
so many times that here too the experts are just starting
to find ou,t what's in the new law.
In this series of eight columns, beginning today, I will
submit the major points in both laws which are of the most
direct meaning and bread-and-butter importance to you.
To summarize at the start, here is the essence of the Re
tirement Act of 1962.
If you are self-employed, you will from 1963 on be able
to earmark and deduct part of your current earnings for a
future retirement fund. While you are accumulating this
fund, the income earned by the fund will be tax-free and
your taxes will become due only when you retire and start
withdrawing from your fund.
Also to summarize at the start, here are the major things
the Revenue Act of 1962 does.
It gives businessmen who buy machinery, equipment and
other tangible personal property for their business an entirely
new tax credit which, the Treasury estimates, will create for
these businessmen a $1 billion a year tax savings pot. The
credit applies to all qualified purchases starting with years
ending after 1961, so the tax savings will be available when
businessmen file their 1962 returns.
It clamps down hard on types of expense account de
ductions and sets up far tougher rules for proving the ex
pense deductions loo. There will be brand new limits on
entertainment expenses, on entertainment facilities such as
golf clubs and boats, on combined business-pleasure trips,
on deductions for busines gifts. No longer will you be able
to uphold your expense account deductions with "esti
mates." It demands much more information be reported on the
payment of dividends and interest by corporations, banks,
savings associations, the like. It also provides for the impo
sition of stiff penalties on those who fail to heed the new
reporting requirements.
And there are many other provisions in the new law.
For instance, 1962 will be the last year for a special capital
gains tax break for businessmen who sell depreciable per
sonal property (such as a car, office equipment) . . . There are
new limits on tax exemption of income earned by U.S. citi
zens working abroad . . . Tax haven operations via foreign
corporations are being restricted . . . The tax advantage of
certain foreign mutual funds is wiped out . . . And so on.
Next: How the retirement plan lax break will work for
the self-employed professional or business man.
The Family Council
Editor's note: Tho ramilr Council eontlfts of a judge, m
phvchlatrtit, threa clergymen, three editor! and a women's editor.
Each arUcle la a summary of m family disagreement presented to the
Council. The Council deals wllb problems, major and minor,
encountered bv guidance counselors and social workers. Edited by
by Mrs. Alma benny. (Copyright by Gecsral Featurea Corp.)
Brenda T. - No matter how
I word a remark, he takes it
as a dig.
Herbert T.-She can't hide
the fact she considers me in
the way.
Brenda T. - I'm at my wit's
end with Herbert. He's so
edgy that nothing I do is
right. If I'm silent he thinks
I'm sulking. And if I speak
he gets irritated.
How can you have a civil
conversation with a man who
takes every remark as an in
sult, or tries to find hidden
meanings in any innocent
word? The other day he
coughed. I said, "You ought
to take something for that."
He glared at me and asked,
"Why? Does it bother you?"
I know he's under a strain.
He failed a civil service test
and he's studying to take it
again. But he has no right
to jump on me like that. I'd
leave him until the exam is
over, but he needs me to
keep house and typewrite his
notes.
e
Herbert T. - I have a bor
ing job I can't stand. After
enduring eight hours of it
each day, I drag myself home
for an evening with a wife
who really doesn't need me
around at all. And she shows
it by making me feel in the
way. She holds a big job in
a department store and makes
more money than I do.
One way I can make life
happier for myself is to
change jobs and that's what
I'm determined to do. i was
upset and badly prepared
when I took the test for a
government position, but I'm
taking it again and this time
I'm studying the manuals
carefully.
Once my income picks up
I'll have things out with
Brenda. I'm fed up with just
being tolerated by her. I want
some respect.
The Council: Herbert is
first and last an angry man
Hostilities seem to be piled
up within him from 'way
back. Maybe he's still sore
at his parents and teachers.
Now he's at odds with his
employer, and feels pushed
around by Brenda. But behind
these animosities we spe i
man who can't stand himself
Herbert needs help. Some
one - a teacher, a clergyman,
a vocational advisor, a psy
chological counselor must
help him first to like himself.
At present he feels scorn for
himself, for not earning much
money, for failing a competi
tive test, for not making
Brenda or himself or anyone
happy. Once he is helped to
appreciate himself as an all
right guy, a battler against
odds, a fellow with quite a
list of talents and virtues
(even though they're not read
ily redeemable in cash), he
should be able to see the
good in many other areas,
even perhaps in his home.
Psychologically Herbert car
ries the unreasoning chip on
his shoulder which, if allow
ed to proliferate, can lead to
the mental illness called para
noia (delusions of persecu
tion). A paranoid may hit the
ceiling over a simple greeting
like "Hello there, fella." He'll
look for a hidden dart any
where. To nip this tendency
fast, we must counsel Herbert
to give Brenda's comments
the very best interpretation
possible. Certainly as his wife
she's pro-him, on his side,
for there's no percentage in it
for her if he's miserable.
A bitter self-pitying man
can twist any remark into a
hurt. In Herbert's hypersensi
tive state, even a line about
the weather might start him
off. "It stopped raining,"
Brenda might say. "Aren't
you glad? Now I can go down
LAVISH RECEPTION ,
Manila - il'PIl - Mexican
President Adolfo Lopez Mat
eos received a lavish recep
tion Saturday as the first
Latin American head of
state to visit the Philippines.
for a walk and leave you
alone," her self-deprecatory
husband might reply.
Some quickie tips for Bren
da: Bear in mind his fragile
ego. Lubricate it, salve it, cod
dle it with soothing lotions
of approval. Also, don't take
his "venom" personally. He's
not as irritated by you as he
sounds. He's irritated by life,
and you're the one who's
around to listen. That's the ir
ritation to work on.
A 3
Effective, Responsible Leadership
ED
BRANCHFIELD
rc&yz for State
xiip' Representative
"Vote for three, including me" ,
Pd. Pol. Ad., Branchficld for State Rep. Comm., Sim Harbison, Chmn., 2125 Orchard Home Drive.
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SAFEWAY PASSES THE SAVINGS
ON TO YOU DURING THE BIG
.v .
j - . WjSr$ ' Shop Safeway for low, low everyday
S Jr prices, plus an unconditional guaran- Fluf-Pufl
tee of satisfatcion on every purchase. ft 1 1 1 .
ndrMinidiiuw
1 25 &
CRATER LIONS LIGHT BULB
SALE TUES. & WED., OCT. 24
25. Please leave your porch
light on between the hours of
6:30-9:30 p.m. for the lions'
Representatives. Proceeds of
tha sale will go toward the
Lions Sight & Blind projects.
M.J.B. - Hills - Folgers - Boyds
Maxwell House
Coffee
Tomato Soup
Powdered Sugar
Carnation Milk
CAMPBELL'S
Real savings al Safeway
EA.
TOUCHDOWN VALUE
Giant Paper Towels
C & H
or Brown Sugar
Mb.
1'
Save on the giant
size. 22S ft. roll ;
4. . 4V(.i'-'-- '.'J- -.lsfPv-' . "P
31
For table use; for
baby's formula. 14V4-OI.
Zee Plastic Wrap Ss 29c
TOUCHDOWN VALUE
Tomato Catsup sr-t (5 s$100 Pacake Flour
Kitchen Craft famous jfl 77l(f
nancaka and waffle H IL1I V
mix. 4-lb. pkg.
Aged for Flavor and Tenderness - USDA Choice
Boneless Swiss Steak
MEAT PIES 7 Ldt
. 49
Mo nor Houst Beef,
Turkey, Chicken, Tuna
USDA Choice, boncleu aged beet
TOP ROUND lb.
Shank Half or Whole
SMOKED HAMS lb
BRAUNSCHWEIGER
Armour Star. 8-oi.
ea
98
.29
SWEET AND JUICY
ORANGES
California Valencias. Mow aboul fresh orange juice
for breakfast. M-m-m delicious!
4-49'
K:.
mm
7 "
LETS HAVE STEW TONIGHT
Carrots Tornipi Celery
Red Potatoes Cabbage
Yellow Onions Your Choice
OCEAN SPRAY
CRANBERRIES
Sauce. Delicious
wm. all m.att. n for
no. juu can C
M&M CANDY
Plain or peanut. A fof A JJrf
Reg. 5c pkg. 0 J
M&M CANDY
6 25
Wafer Bart
Reg. 5c
PREM
Swift't lunch meat.
Ready to eat.
12-oi. can
53'
SPRY
100 More
Poly-unsaturates.
3-lb. can
89
Maple Syrup ZX-T 3$1
Soda Crackers ,,i,p" ..... p., 29c
Salvo Dttirgtnr Tablats. 40-oi. 79c
Metrecal Liquid IZZSXr .:.k,c..$1.39
Kotex Aagular Price
Clgar6tt6S FHtMor Kin Sli
Boa of 12s 37C
c.rt.1.89
Hard working
laundry detergent 1
Save 5c 47-oz. pkg
FAB Detergent
Ad Detergent
JIJaw Scouring clei
HJdA H-oi. die
Ajax Cleaner
For laundry.
Save 15c.
40.O,. 74c
2 f" 35c
liquid. 7Ca
With ammonia. 28-oz. I WW
CI-a!.a Room Deodoriier
Morient s.v. io.
Soaky For child's bath.
7-oi.
79c
10-ot. liie 69c
Pricet effective Monday, Oct. 22, through Wednesday, Oct. 25, at Safeway in
Medford. We reserve the right to limit.
Gel Ready for Christmas. Save
Gold Bond Stamps
Visit our gift centers or leaf through the new
Gift Catalog. Choose from a wide variety of
lovely gifts for the entire family.