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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (June 13, 1963)
SECTION B Medford PAGES 1 to Tribune MEDFORD, OREGON, THURSDAY, JUNE 13. I63 I : ' rVf'ffT "1 ft ff Forest Products Industry Appears Tax Case Winner NEW POPE DISCUSSED Joseph Cardinal Ritter, left, archbishop of St. Louis, and Laurian Cardinal Rugambwa, archbishop of Rutabo, Tanganyika, who were appointed "Princes of the Church" by the late Pope John XXIII, get together during a meeting at Vativan City to pave the way for election of Pope John's successor. Cardinal Rugambwa was the first Negro to be elevated to the princely rank in the modern history of the church. (UPI) By A. ROBERT SMITH Mail Tribune Washington Correspondent Washington - The forest products industry has appar ently won its campaign pm.iitw against a tax i n c rease un der the Ken nedy adminis tration's tax revision pro p o s als. The House Ways and Means Committee, in the process of .Bkl.ith araiiing new tax bill, has killed the administration's idea for a sharp cutback in the capital gains allowance on timber sales - one of the most bene ficial features of the federal tax laws for many companies in the forestry products field since World War II. Under a tax law adopted in 1944, companies selling timber paid taxes on its in. creased valuation at the capi tal gains rate of 25 per cent. This year the Treasury De partment proposed eliminat ing this low rate and taxing such profits as ordinary in come, either at the much high er personal income rate or the prevailing corporate tax rate which is currently 52 per cent. The Treasury figured this change would cost industry and benefit the government by $90 million, $75 million from corporations in the lum ber, paper and plywood busi nesses and $15 million from individual timber owners. Treasury officials claimed present law helped the large corporations chiefly, such as Weyerhaeuser which paid at a rate of 27 per cent in 1961, Georgia-Pacific which paid 28 per cent and U.S. Plywood paid 30 per cent. Chang Dttrimtnla! During hearings on the tax bill before the Ways and Means Committee, industry witnesses stressed that good conservation practices, such as the growth of private tree farms, were possible only un der capital gains treatment. They said a change would be detrimental to this long-range effort at providing new tim ber supplies and that many corporations would simply cut and get out. The Forest Service backed up the general contentions of the forest products industry in a report subsequently made to the Treasury Department but never made public, ac cording to Rep. Al Ullman (D-Ore.), the Northwest rep resentative on the Ways and Means Committee. "Treasury admitted Its po sition was not sound," Ull man said, "after the Forest Service said its proposal would seriously affect refor estation." As tentatively approved by the committee, explained Con gressman Ullman, timber owned by an individual would continue to get the same capi tal gains treatment as the present law provides, unless he has owned it for over three year. This means that timber owned by an individual and sold under contract or used in a business after being held from six months to three years would be computed as follows: half the gain in that capital asset would be added to the individual's taxable personal income but it could not be taxed at a higher rate than the 25 per cent capital gains level. If the person holds the tim ber over three years, only 30 per cent of the gain need be added to the person's taxable personal income and it could be taxed at no more than I9"-i per cent. Ullman said the theory of this change is that the com mittee expects it to stimulate the economy by giving tax incentives for property own ers to sell capital assets that are not currently being util ized. While these decisions by the committee only affect In dividual holdings, Ullman said it is virtually certain that the vrate for corporations won't be changed. This means iluit while the tax bill won't increase tax rates, neither will it reduce the capital gains maximum level from 25 to 22 per cent, as Kennedy requested. I don't believe the commit tee will make that change," Ullman said. "It would be too much of a bonanza for big corporations.'' Treasury officials had said big corporations gained chief ly from the present law. They reported that of 7.000 firms which shared in $77.7 million in capital gains in 1961, 20 big corporations divided $47 million of it. POLISHERS for RENT t A to Z Rental 12)3 N. Riersi4 77f-1474 FOLGER'S COFFEE 1-2 or 3-lb. Cans 65 .b $39 0LX SUPER MARKET Open Till Midnit. 7 Days a Weak 10-Oz. Instant Tourists Report Russians Slowly Approve Tipping By JAY AXELBANK United Prats International Moscow-fUPD - The Moscow taxi driver made a sour face when handed a 20 kopeck (18 cent) tip by the American tourist. M i s u n d e rstanding. the American doubled the tip and preferred it again. Again the driver returned the money. I work for a liv ing," he said. "Don't insult me." The taxi driver was a "good communist," and good communists don't accept tips. Since 1917 the government has tried to discourage tip ping as a bourgeois hangover. From time to time articles appear in the Soviet press reminding citizens ' that tip ping is decandent. Recently the magazine "UgonyoK (Little Flame) issued a stern reminder ' to Russians that they "humiliate" taxi drivers by tipping them. But thousands of Russians are being humiliated every day and seem to like tt, Largely because of the influ- ence of an increased foreign tourist flow, tipping is not only not dying out, it is be' coming an unofficially ac cepted custom. Russians themselves, if ask ed a direct question, will us ually react by saying tipping is "immoral" or "degrading." But under probing about nine out of 10 will admit they do tip. "I am always in a quan dary about it," one office worker told United Press In ternational. "If I tip I insult a waiter. If I don't tip I might also insult him, or be thought cheap. Most of the time I tip moderately may be because I am a little bourgeois minded." This correspondent has found that on an average one out of 10 taxi drivers in Mos cow will balk at a tip. The other nine gratefully accept. I n restaurants, barber shoos, coat check desks, etc tipping is about as usual as in the West. Cod Changing In the years after the 1917 revolution it was fairly com monplace to see signs exhort ing Russians not to tip. "Don't humiliate your fellow men, was a typical admonition. But such ethical directives are rare now in Moscow, al though the farther one goes outside the capital, the less tipping is practiced and the more likely a tourist is likely to have his tip handed back. Moscow coat check coun ters in winter-Russian custom demands that all coats be checked in restaurants, thea-. ters or other public places- now sport little dishes with 10 kopeck pieces and other tips. Many Russians say they tip approximately 10 per cent al though some "sports" may, on a big night at a restaurant when food and drink flow freely, tip as much as two rubles ($2.20) for a five ruble dinner. While Western wages for waiters, hat check girls and others who supplement their income with tips often are act lusted to the handouts expect ed, there is no such system in the Soviet Union. 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