Independent from Long Beach, California on April 3, 1962 · Page 2
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Independent from Long Beach, California · Page 2

Long Beach, California
Issue Date:
Tuesday, April 3, 1962
Page 2
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A-2-JNDEPENDENT luck. C»ii, TIM*. A*u I IHI r--L.A.C. SAYS: Tax Revision Laiv · Director Mortimer Caplin of the Internal Revenue Service answered a lot of questions on the Sunday Meet the Press program. But we were wondering why he was not asked about the costs of administering the withholding tax on bank interest and dividends. He told how hundreds of millions of dollars' would be collected from these sources. But this is an issue that deserves a lot more consideration. * * * Under the President's plan, the banks, build- Ing loan associations and corporations would deduct 20 per cent of any interest or dividends due investors. If the recipient of such income did not owe any income tax he could get a refund by applying to the Internal Revenue Sen-ice (IRS). Mr. Caplin did not estimate how many of the millions of investors were not reporting these incomes-- or how many would be eligible for rebates. He said he was satisfied that most of those failing to report these incomes were ignorant of the fact they were taxable. This is hard for us to believe. Certainly anyone in a taxable bracket who now makes out income tax forms, knows this. It would therefore seem probable most of those who are ignorant of the fact are the people with small incomes who have never had to report these amounts. It is these people who will be hurt by having reductions in their income -- and then have to wait on governmental red tape to get the refund. ft * * As to the cost of this procedure: The corporations who pay dividends to the 15 million shareowncrs will have a monumental bookkeeping problem. The additional cost will run into hundreds of millions of dollars annually. Of course, the government will pay half this cost because it will be an additional cost charged against profits -- which means 50 per cent of the cost will be reduced taxes the government now collects. But the other half will be reduced profits and dividends that might be paid. This withholding feature is expected to bring in over $800 million that, Mr. Caplin estimates, is not now paid by recipients of interest and dividends. But when the cost of the procedure is considered, it will certainly be far less than that estimate. Withholding will have little effect on present income taxpayers. They will simply take credit as they now do for salary and wage withholding taxes. But there is considerable doubt as to whether the rest of the people have enough total income to owe any tax, but the 20 per cent will be withheld from a few hundred dollars a year they receive from such sources. ft * * Mr. Caplin estimated almost $5 billion in new taxes could be collected from changing rules on expense accounts and other large income tax deductions. Any program to close these large evasions will be welcomed by the great majority of people who honestly report their taxable incomes. But there is something wrong with our system when corporations and these institutions have to collect the taxes for government. Wage and salary withholding taxes were accepted to make tax collections current and more simple for government. But with the constant changing of investors, the bookkeeping costs for the new plan can be more costly than the benefits hoped for. One facetious remark we just read is -- Why not pay all wages, salaries, dividends and interest to the government-- then let it return what it thinks the peo pie should have. This is facetious -- but we are get' ting very close to that system when millions of people must ask for return of money they never owed the government.-- L.A.C. PEOPLE IN THE (l.A.C'l cc'ur;l, by L A. Cci'.M Sr., euioi cf r«'icnq! cpir.icn, *«d d:ci 'd#r»J cricn cf t^.'t rt*:c«r« r -) U« oli.n- Katzenbach Gets No. 2 Justice Post Assistant A11 y. Gen. Nicholas de B. Katzenbach, who did part of his legal studying while a war prisoner of the Germans, was promoted by President Kennedy Monday to deputy attorney general The 40-year-old Philadelphia native, a Rhodes scholar, will move Into the Justice Department's No. 2 post to succeed Byron R. White -- another Rhodes scholar. White was named Friday to replace Justice Charles Evans Whlttakcr who resigned from the Supreme Court because of failing health. At a news conference shortly after his appointment was announced, Katzenbach said: "The hardest thing about this new assignment will be to fill Byron White's shoes." It was largely through- White that Katzenbach was tapped for a Justice Department post. The two rret while attending Yale Law School, \vhere Katzcn- bach received his law degree In 1947. Katzenbach spent much of his life In Princeton. NJ., and graduated from the university there in 1945. He studied at Oxford on the Rhodes scholar- NICHOLAS KATZENBACH Studied in War Prison ship following his graduation from Yale. He told reporters that he was bored in prison camp after being shot down in the Mediterranean in 1943. and spent much of his time studying lawbooks he managed to obtain. UAILEO OUT Texas financier Biille Sol Estcs was freed on reduced bond of $100,000 Monday after four days in jail at El Paso and went home vow- Ing to save his tottering agricultural empire. He said he was $32 million In debt but had a "go- Ing business (worth) In excess of $20 million." VS. Attorney. Fred Morton argued that evidence showed Estes planned to flee the country and Is a "poor risk" for ball, but Federal Judge R. E. Thomason ruled the original ball of $500.000 was excessive. A U.S. grand jury In El Paso w a s investigating charges that the 37-year-old onetime financial boy wonder conspired to transport fraudulent chattel (personal property) mortgages from Texas to Los Angeles last October. DETHRONED? A London newspaper Monday printed a splashy display of three of the world's best-known young women wearing leopard skin coats and concluded that mink is about to be dethroned. The pictures were of Queen Elizabeth, Mrs. John F. Kennedy and Elizabeth Taylor. The newspaper \vas the Daily Mirror. The Queen was shown wearing a leopard skin coat at a race track 10 days ago. Mrs. Kennedy appeared L.B. Doctors Seek Navy Hospital Stall (Continued From Page A-l) )e large enough to care for ,ong Beach's military medi cat needs," he added. Dr. Wright said the conv mittce feels that a naval hos- ijtnl should be located on lecves Field, Terminal Island. The proposed Eldorado Park site, he said, is 13 miles icross town, in heavy traffic, 'rom the Navy Landing. "Someone like the American H o s p i t a l Association ihould make an Impartial survey." Dr. Wright said. · · · * DR. WRIGHT said his committee's action was approved y the membership of the -ong Beach Medical Associa- ion. He said that "we arc well riftct t L .« 3 Children Killed LAE, New Guinea (UP1)-- Three children were killed, four arc missing and several were hospitalized after a truck carrying 40 children home from a choral contest plunged into a gorge near here. LVDEPENDENT PubtUhcd dill/ cicept Sunday at Slitfl t. and Pint Avt., Long Ouch 17. Calif, Cnlerrd aa mend claia matttr Mar. 57, w, at Long Dtacti J, Calif. AdJudlCJtld by iu. r*Hor Ceurt, Lea Anoclft County. Oct. «, tilt. Ctcrtt No. C.1D2CO. I'tr Ptr Month Viai Cirri.r Dlllvtry JJ 2S 177.00 By Mall tingle Copy . aware that there I* a real need for more adequate hospl al facilities than are now available on the USS Haven." He said the Haven, hospital ship based here, ordinarily fills only half of its 300 beds. Capt. Silk said, however, that the Haven's average daily patient load is 250. "We're having to send pa ticnts to San Diego every week by car and by ambulance because wo can't care for them here," Capt. Silk said. "If we were to get only 350 beds, we wouldn't be able to obtain the medical specialists we need, such as ncurosur- peons." ho continued. "You need at least a 500-bed fa cility if you are to have a teaching hospital." * * * * THE MINIMUM size hospi tal needed here is one of 500 beds, he insisted. A 750-bed hospital would be better yet, he said. Meanwhile, Long Beach's young doctors organization, the Galen Club, has gone on record as opposing a 500-bcd naval hospital. Dr. John W. Barloon. club secretary, said the group unanimously resolved to op rase a hospital that large, rhe club currently has an ac- ive membership of 57 doctors under 40 years old. Dr. Barloon said the Galen riuh feels that a naval hospital Is justified but should be 10 larger than 200 or 250 jeds. The club sent a letter tell ng of Its action to Sen Rus sell, who replied to Dr. Bar loon that he was referring It lo the Senate Subcommittee on Military Construction. Sen. Russell noted In his letter, Dr. Barloon said, that proposed naval hospital last Lobbyist for Union Challenged (Continued From Page A-l) mission to appear before As sembly committees. Barrigan, who recently with drew as a candidate for th Democratic nomination fo secretary of state, t o l d th legislators he has held thrc state jobs in recent years an each time signed the stat loyalty oath. He said he did not rcmem her a Rcna Vale and denlet ho ever spoke before th Young Communist League. · · * · ASSEMBLYMAN Tom Car rcll, D-San Fernando, said tha if anyone thought the charge mado against Darrigan were true, they should file charge against him for lying when h signed the state oath. "Important and s e r i o u statements arc being mad about the guilt or innocenc a senate committee killed the of a man," said Carrcll, th only committee member wh year because it would have voted against holding up Bar been "too large and costly."jrigan's credentials. New Law Gives Hearing to California Sfote Pensioners LONG BEACH -- Under the new State medical assistance plan, FREli hearing aids arc issued to Stale pensioners. \Vrile or visit The Associated Hearing Center, 622 Pine Avc., Long Beach. See Mr. Guycr or call HI- 2-0159. Atk about ffie World's Smollett Hearing Aid For Free Home Trial Demonstration Call HE 2-0459 HAME ADDRESS _... SAVE AT BURKS' SAVE AT BURKS SAVE AT BURKS ANNUAL IIKT ARRIVED! TWs temendous JU combined purchase by G-E Dealers In California-means ff G-E Appliances at low FEATURE PACKED! 7MNLOAD PRICED! Giant 12-lb, Capacity 1962 GE HOME LAUNDRY TRAINLOAD- fit* O-Ct £rt/laiV» FILTER-FLO 9 WtMigS/iltmt New 1962 Big Family-Size G£ REFRIGERATOR J« tAe falmt jn iiM to/ * Dill Delrmt convenience! · ft. el iMf ipictj · FuU wUih ftttor ·action] · l : ufl width cJaUrt trij! · Ad- jmtahfc door iMfl 'RnnonMe jhclwi! Jilt r-* t!li[UtfhftiiaJiJ3a! OPEN MININGS UNTIL 9 SUNDAYS NOON UNTIL 7 · Ttro lew! »»trr tcJtrtotl · T«w» · i tnrr«»luml · Spray rirn! · Sifcrjr liJ switch! · Witer liter (or tnull kudt! SAVE AT BURKS SAVE AT' BURKS · SAVE AT B U R K S SAVE AT BURKS in hers during a visit (o Rome three weeks ago. Miss Taylor wore hers In Rome Saturday. "Mink has rud it." said the Mirror. CONFESSES A 14-year-old high school freshman, wearing to , tell his parents he had flunked an English course and unhappy over their nag- t- glng to im- 11 prove his !J scholastic standing, shot and killed his father and mother In Philadelphia Monday as they slept. Police said deed was disclosed in a sobbing statement to his parish priest. William JoannI w a s charged with homicide. Police who broke into the small North Philadelphia home found Stephen JoannI, 50-year-old painter and plasterer, and his wife, Elizabeth, 53, dead in adjoining twin beds. Bullets in the head had killed both. TRIAL Fashion designer Don Lopcr was held for trial on a felony drunk driving ch'rj* Monday following « hearing before Weit Los Angeles Municipal Judge Leo Freund. , A second count of hit- run driving was dismissed by the judge who ordered Loner, 54, arraigned · In Santa Monica Superior Court April 27. He Is free on $ I,CCO bail. · Loper was arrested early March 11 three miles from a collls'on on Sunset floule- vard near Mapleton Drive,' Holmby Hills. STOCK MARKET L E C T U R E M «ITM ·« ~fai iiktiiM*Minit[?! f«i. A-JS l-TImm' J. P r r k : WILLIAM the boy's FRIENDLY SERVICE: an Important "plus" at the NATION'S LARGEST FEDERAL SAVINGS ASSOCIATION CALIFORNIA FEDERAL SAVINGS ·NO lOAKAllOClATIC 1 * H.EYE1I OFFICES STRAIGHT KENTUCKy BOURBON WHISKEY · 89 PROOF CANCIEMT AGE QISTIlllNa CO..FRANKFORT.W. uricnt 6 YEAR OLD KENTUCKY BOURBON $499 ~ t 5171 · V t H.

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