Logansport Pharos-Tribune from Logansport, Indiana on March 17, 1988 · Page 15
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Logansport Pharos-Tribune from Logansport, Indiana · Page 15

Logansport, Indiana
Issue Date:
Thursday, March 17, 1988
Page 15
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Pharos-Tribune, Logansport, Indiana, Thursday, March 17, 1988 Page )5 Business Income Tax Gap Widening IRS believes voluntary compliance with tax regulations will remain below 85 percent WASHINGTON (AP) - The gap between federal income taxes owed and paid is likely to increase by another $29 billion within four years after tripling since 1973, even though the new tax law has reduced opportunities for cheating, the Internal Revenue Service said today. "The estimated growth of the lax gap is due in large part to ... real expansion of the economy and through inflation," the IRS said in a report to the House Ways and Means oversight subcommittee. The agency predicted voluntary compliance by individuals and corporations will continue rising slightly but will remain below the 85-percent level. The 1987 tax gap was estimated at $85 billion — down 26 percent from the $115 billion forecast in 1983. The re-estirnate reflects the fewer deductions and lower tax rates under the new law; evidence of less cheating than had been anticipated on capital gains and tips; and improved methods of data collection. The biggest single cause of the tax gap is the underreporting of income by individuals who file returns. Thai: cost the treasury more than $48 billion last year, or almost 57 percent of the gap. Almost $17 biJlion of that income Economy At A Glance Ford Boosts Indiana's Economy INDIANAPOLIS — More than $2 billion was pumped into Indiana's economy by Ford Motor Co. last year, the No. 2 automaker announced. Ford officials said the carmaker employed 3,193 people at its English Avenue steering gear plant, its only Indiana factory, and contributed $145 million in wages, bonuses and taxes to Indianapolis' economy in 1987. Ford paid the city of Indianapolis $3.7 million in taxes and donated more than $300,000 to the United Way and other charities, the company said. January Trade Balance Deteriorated WASHINGTON — The nation's trade deficit widened slightly in January to $12.4 billion after two months of sharp improvements, the Commerce Department said today. The excess of imports over exports was up from the $12.2 billion deficit in December. Exports, which had propelled improvement in November and December, fell by 10 percent in January to $22.3 billion. Prospects Improve For Production, Service Jobs WASHINGTON — Job prospects for both production and service workers are the brightest they have been in three years but are declining slightly for technical, professionaJ and office workers, according to a private survey. Twenty-one percent of the 398 corporations polled in the survey published Wednesday said they anticipate expanding their production and service work forces from April through June. Largest Bank Holding Firm in Texas Ailing DALLAS — Stung by bankruptcies among its most prosperous denizens, a record clip of bank failures and a massive criminal investigation of its savings and loan industry, Texas' fabled financial brilliance has dimmed further now that the state's largest bank holding company is seeking a federal rescue. Analysts said Wednesday that the worst isn't over for Texas' hobbled financial industry. Dallas-based First RepublicBank Corp., with $33.2 billion in deposits and 134 banking facilities across the state, acknowledged this week that its deteriorating loan portfolio and difficulty in raising deposits forced it to seek federal help. FCC Won't Hike Fees For Computer Phone Hook-Ups WASHINGTON (AP) - The Federal Communications Commission is abandoning plans for a hefty increase in telephone hook-up charges for computer users, according to FCC and congressional sources. Strong and nearly unanimous opposition to the proposal led FCC Chairman Dennis 11. Patrick to give up on it, said the sources, who spoke on the condition they not be identified by name. Commissioner Patricia Diaz Dennis said Wednesday that Patrick had not spoken with her about scrapping the plan, but she said she agrees. "There's a lot on our plate right now and I don't think I'd miss not seeing that on it," she said. Their votes would be enough to ditch the proposal, though the third commissioner, James Quello, who could not be reached for comment, was likely to concur. Patrick's office declined to comment. Dropping the plan would be good news for the hundreds of thousands of computer users who dial into databases such as CompuServe and QuantumLink. The services carry items such as news stories and financial reports, and allow users to communicate electronically with each other. Users of these services flooded the FCC and Capitol Hill with thousands of letters opposing the plan, which would add about $4.50. an hour to the cost of hooking up to information services. They said the increased charges, which would double the hourly hook-up price for some information services, would drive many of them off the computer networks and crush a fledgling industry. Rep. Edward J. Markey, D- Mass. and chairman of the House Energy and Commerce telecommunications subcommittee, said that in light of the commission's apparent reversal on the proposal he would delay indefinitely introduction of a bill preventing the FCC from imposing the access charges. But, he said, the panel "will closely monitor the commission's actions to ensure that these onerous charges do not re-emerge in a new form." The biggest single cause of the lax gap is (he underreporting of income by individuals who file returns. That cost the treasury more than $48 billion last year, or almost 57 percent of the gap. —IRS Report was from non-farm businesses conducted as sole proprietorships. Another $7.7 billion was attributed to such "informal suppliers" as moonlighting carpenters and roadside vendors. Overstatement of individual deductions accounted for 4.1 percent of the 1987 tax gap, or Bank Group Accredited INDIANAPOLIS (AP) - The Indiana Department of Financial Institutions has won accreditation from the Conference of State Bank Supervisors, officials said. Department supervisor Ruth Harris accepted the certificate Wednesday in a presentation at the governor's office. Indiana's regulatory department is the llth state to earn CSBS certification under the state bank accreditation program. The department received accreditation based on its "high standards of supervision and regulation," said William C. Harris, former CSBS chairman and chairman of its standing committee. $3.5 billion. Claiming too many personal exemptions cost the government $2 billion. Another $7 billion of the gap was blamed on people with taxable earnings who failed to file a return. Another $1 billion a year is lost to taxpayers who make mathematical errors on their returns. Individuals accounted for more than $63 billion of the gap; corporations, the other $21.4 billion. Companies with assets of $10 million or more accounted for three-fourths of the corporate gap. Because of the withholding system, the IRS said, individuals who file returns voluntarily report 99.5 percent of their wages and salaries. The figure for pensions and annuities was estimated at 98.4 percent, due largely to the fact such income is routinely reported to the IRS by payers. Almost 95 percent of interest and dividends is reported, as is more than 88 per- cent of capital gains. On the other hand, roadside merchants and moonlighting craftsmen report only 13.1 percent of their earnings. Alimony recipients tell the IRS about 71 percent of such income. The total tax gap was estimated at $28 billion in 1973; the IRS projects it will hit $114 billion in 3992, In its 1983 report the IRS estimated untaxed income from prostitution, gambling and narcotics at $9 billion. In the latest report, the agency gives up on efforts to even guess at income from those and other illegal sources. Use Variance Sought To Build Barbershop At 100048th St. By MARGO MAROCCO Business Editor Darrell E. Silance, 2221 Jefferson St., has filed a petition with the Logansport Board of Zoning Appeals requesting a use variance for construction and operation of a one-barber barbershop at 100048th St. The site, presently undeveloped and zoned R-3, medium density residential, is owned by Thomas D. Hayes, Kokomo. The planning staff findings indicate there are numerous residences in the area which may be affected by a commercial use of the property. The report says that an insurance office north of the proposed site should not be affected, but it is a non-conforming use. The existence of one non-conforming use in the area should not, according to the report, justify the creation of a second non-conforming use. The report notes that the property is quite sloping, which is not characteristic of other R-3 properties. The staff believes the slope may be grounds for a setback variance or other variance for a residential use on the property, but that the condition does not create a situation which only makes this property useful for a commercial use. The planning staff recommends that the petition be denied on the grounds that a peculiar condition and a hardship do not exist for a commercial use on this site. The staff encourages Silance to seek an existing properly zoned site for his business such as in the downtown, along U.S. 24 East, or in commercial property on Erie Avenue. The zoning board will conduct a public hearing on Silance's request at 4 p.m. Monday in the council chambers of the City Building. Great Lakes States Poised For Industrial Boom CHICAGO (AP) - The Great Lakes region is undergoing a "mini industrial boom" because the depreciating dollar is creating an increased demand for American products overseas, an economist says. The economic revival will build rapidly with the growing demand for U.S. goods in foreign countries, predicted James Annable, an economist for the First National Bank of Chicago. The dollar's depreciation in value against the Japanese yen and the West German mark has made U.S. goods cheaper in those countries, resulting in greater export demand for industrial products made in the Midwest, Annable said at a news conference Wednesday. "We're heavily weighted in industrial goods and industrial machinery, and that sector is going to take off in the next few years," Annable said. The increased demand for such staples of the Midwestern economy as American cars, steel, plastic and rubber will create a "second wave" of de- mand for electrical machinery and other factory equipment, he said. Because of its concentration of heavy industry, the revival will benefit the Great Lakes region more than New England or the Southwest, two areas that experienced rapid economic growth in the last decade, Annable said. The economic expansion in those regions stemmed primarily from an increase in defense spending during the first six years of the Reagan administration, but the defense buildup has slowed, he said. Economic growth also brought higher wages to New England and the Southwest, and raised labor costs above those in the Midwest, Annable said. The Midwest's relatively low labor costs will make the region "a magnet for new investment," he said. The industrial boom could last 10 years but likely will result in higher inflation, an inevitable side effect of economic expansion, Annable said. Saturday, March 19 9 AM-4 PM Only! SALT SALE!! 80 Lb. Iron Fighter *5.49 sou. Rock $ 1.85 40 lb. iron Fighter $3.25 80 Lb. Rock *2.69 40 Lb. Pellets $ 2.69 80 Lb. Red Out $ 5.69 80 Lb. Pellets M.49 50 lb. Iron Fighter Block '3.89 80 Lb. Solar Salt *3.54 50 Lb. Red Out *3.74 50 LB. Solar YOUNG'S 4115 U.S. Edit Loganiport 722-2830 201 BURLINGTON AVE Open 7a.m. to Midnight 7 Days a Week First National Bank of Logansport says: DON'T YOU FORGET ... COMMUHtn OWNtO, COMMUNITY QfllNTf D THE FIRST NATIONAL BANK OF LOGANSPORT DOWWrCWM NOHJH&iOf lOOAHSPQUT MALI QALVCSTOH TWEUVC MILE TREAT THE WHOLE FAMILY TO THE CASS COUNTY 4-H CLUB ASSOCIATION'S FISH & TENDERLOIN DINNER Friday, March 18th from 4:00 to 8:00 PM in the 4-H COMMUNITY CENTER Adults- *4.50 Children (5- 12)- S 2. 50 GROUND "NEW AT OUR STORE" V7l\WI»l^ ^^^ ^^ ^^ Turkey 88 lb. SNOWY WHITE Cauliflower head ANGEL SOFT BATH Tissue R. C. Cola or 7-UP 2 Liters Limit 3 PLAY BANKROLL The game where the money is always given away in our store. Unlike many store games where there is -. no guarantee that the prize offered will be j/ "_ I given away in that store, Bankroll prizes I are given away only in our store. BIWEST BANKROLL EVER 1,300.00

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