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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Aug. 6, 1954)
PAGE TWELVE HERALD AND NEWS. KLAMATH FALLS. OREGON FRIDAY. AUGUST 6, 1954 Tax Revision Law Lowers Burden On Retired Persons By CHARLES F. BAH RETT WASHINGTON Oft-Most elderly retired persons probably won't have to pay any lederal Income tax from now on. That is one of the far-reaching effects of the giant tax revision bill just passed by Congress. Some of Jus biggest benefits will go to re tired persons. Wn you're 65 or over, the law already permits you to exempt 91,200 of your Income from taxes. Jf you re married and file a joint return, the exemption is $2,400. From now on, in many cases, retired persons will be permit led In effect to deduct an additional $1,200 of retirement income. That would be a tax cut of $240. If both husband and wife have retirement income, they can get an additional $2,400 deductiun, or a $480 tax cut. Retirement income is defined as income from pensions, annuities, interest, rent and dividends. With other standard deductions, this: It you and your wife both have retirement Income, you can get up to $5,333 a year without paying taxes; if only one ol you has in come, you can get $4,000 tax free; If you're a retired single person, you can get $2,660 without paying any tax. Experts believe these cutoff fig ures will cover most retired per sons, except a few in upper in come brackets. They estimate the new bill will give tax cuts to almost two mil lion taxpayers, totaling about 141 million dollars the first year. The number to benefit, and the revenue reduction, will Increase later as millions more retire. Technically, the new provision works like this, if you qualify'; You figure your tax bill just as in the past, taking all regular ex emptions and deductions. Then you apply the first bracket tax rate now 20 per cent) to your retire ment income, up to $1,200. Next you subtract that figure, say $240, di rectly from the tax payment you Otherwise would make. But there's one important limita tion. If you get income that Is al ready tax free as from social security, railroad retirement, mil itary or veterans' pensions you must subtract this from your $1,200 retirement Income before you fig ure your tax credit. In other words, you can't exclude the same in come twice. For example, if you get $700 a year from social secur ity, you could count only $500 of other retirement Income; and you would get a new tax cut of only 100. However, you don't have to subtract military or veterans' dis ability payments from your retire ment Income. And there are four important re quirements to meet before you qunilfy lor the new benefit. First, most persons must be 65 or over. But if you retire under public pension system If you're a retired schoolteacher, policeman or other lederal, state or local gov ernment worker you can subtract 20 per cent of your income from tha' system even before you are 05. But you can't count other re tirement income until you are 65 or over. Second, to be counted as a re tired person and get the full bene fit, you must make $000 or less from work. Any earned income above $900 must be subtracted from your $1,200 retirement in come belorc figuring your tax credit. So if you make $2,100 or more from work, you are not con sidered to have retired and you get no benefit. But at age 75 or over. you can get the full benefit re gardless of your earnings. Third, to qualify, you also must have made as much as $600 a year in earned income, for any 10 years before you retire. The theory is that the benefit should go only to persons retiring from active work. But note that you don't have to cam $600 for the 10 years imme diately before your retirement, You can count any 10 years even those long before you retire and they don't have to be con secutive. A widow can qualify un der this so long as her husband did. Fourth, you can't get this bene fit if you use the short-form tax return, under which you merely list your income and exemptions and take your tax from the table on the back of the return. Only taxpayers with $5,000 or less in come may use this return. , . it..-. , rrysy-;1 i.i fiv, ,.,. -x THOSE LITTLE SPOTS on the posts In the background are there to be shot at. These Boy Scouts are learning marksmanship at Boy Scout camp. Snake River Plan Hit By Neuberger PORTLAND State Senator Rich ard L. Neuberger today announced hia "unalterable opposition" to any nlan which would eliminate the Snake River from a program of re gional development in the Pacific Northwest. Speaking at a rally of Democratic party workers in south east Portland. Neuberger blasted as "peanut politics" a recent pro posal that the Army's 308 Report bo revised to place Hell's Canyon and other Snake River projects far in the future. Neuberger listed four reasons for hi.': tand: 1. "Hell's Canyon, on the Snake River, is the only great power pro tect not opposed in any sense by commercial or sports nsmng groups. 2. "No snake River mm involves the complex and costly concessions tu Canada entailed in construction of the Libby project, for example. 3. "The Snake River contains nearly 20 per cent of the potential b.vdroeIectricity,of the region. 4. "To delay Hell's Canyon and other Snake projects would be to Swimming, Pool Sinks In Ground LONGMEADOW, Mass. I) No- history. The commission estimated 37,500 persons are hunting for Jobs, plus 25,000 others who are idle because of labor disputes. The estimate of 37,500 unem ployed has been exceeded only once before at this time of year. That was in 1949. The total was 38,900 a month ago, and 24,600 last year. Unemployment edged higher in the Portlnnd area, and around Astoria, Coos Bay, Bend, Eugene, Salem, The Dalles and Tillamook. The commission said bean and body sank in the swimming pool j other late harvests would ease the' when the swimming pool sank I Picture in other areas later this yesterday. , month. State Jobless Totals Sliown SALEM W Oregon's unem-1 fits were paid to residents of the ployment total continues near rec- Portland area, while Eugene was ord summer levels, with the stale j in second place. Unemployment Compensation Com-1 Workers in labor disputes can't mission announcing today j draw benefits, so only about 20 that its July payments of $1,008,-, per cent of last month's payments 812 were the largest for July in ! went to employes in the lumhpr Swimming Instructor Vernon Cox guided 20 children out of the pool when he noticed the water begin to "bubble and flutter as if there was terrific pressure." Shortly af terward the pool sank In several feet of earth. . Authorities said the concrete pool was built over the foundation of an old Ice plant and there was a filling of loose dirt between the foundation and the bottom of the Pool. The July benefit total of $1,008, 812 compared with the previous July high mark of $831,104 in 1B40. About half of last month's bene. industry. Weekly claims are running al most 50 per cent ahead of a year ago. and about tile same as those in the summer of 1949. ASSASSINATION ATTEMPT RIO DE JANEIRO lPI Carlos Lacerda. publisher of the Inde pendent Tribuna da Imprensa and an outspoken critic of the govern-: ment, narrowly escaped an assas-: sinntion attempt Wednesday night, j A friend with him was shot dead. ' sacrifice the prosperity of a vast Oregon region In Malheur, Baker, Wallowa and Union counties."- : Neuberger contended that Hell's Canyon would brin infinitely more "prosperity and development" to Oregon than would the Llbby pro ject in Montana, which this pres ent national administration favors over Hell's Canyon. The speaker, who is Democratic candidate for the U.S. Senate, claimed that re cent statements by high Canadian government officials make it evi dent that the United States will have to reimburse Canada "lavish ly" for the right to flood Canadian soil under the surface of the Libby Reservoir. "If I am elected to the Senate," said Neuberger, "I will fight to pre-a-nt the political re-writing of tho 306 Report, insofar as I am able. The destiny of our region is more important than the balance sheets of some power companies, which are striving to block Hell's Canyon ' forever and ever." (Neuberger - for -.Senator Com mittee, 708 Mead Building, Port land 4, Ore.) 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