The Courier News from Blytheville, Arkansas on August 6, 1954 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Friday, August 6, 1954
Page 3
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FRIDAY, AUGUST «, 1W4 BLYTHEVILLI (ARK.) COURIER NEWS PAGE TH1EB Tax Revision New taw's Biggest Benefits Go to Aid Retired Persons NOTE: This is the fourth in a series of articles explaining how the new tax revision bill will affect individuals. By CHARLES F. BARRETT WASHINGTON (AP) — Most elderly retired persons probably won't have to pay any federal 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 its biggest benefits will go to retired persons. When you're 65 or over, the law already permits you to exempt $1,200 of your income from taxes. If you're married and file a joint return, the exemption is $2,400. From now on, in many cases, retired persons will be permitted 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 deduction, or a $480 tax cut. Retirement income is defined as income from pensions, annuities, interest, rent and dividends. With other standard deductions, the new provisions boil down to this: If you and your wife both have retirement income, you can get up to S5.333 a year without paying taxes; if only one of you has income, you can get $4,000 tax free; if you're retired Single person, you can get $2,666 without paying any tax. 2 Million Aided Experts believe these cut-off figures will cover most retired persons, except a few in upper income brackets. They estimate the new bill will give tax cuts to almost two million 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 exemptions and deductions. Then you apply the first bracket tax rate (now 20 per cent) to your retirement income, up to $1,200. Next you subtract that figure, say $240, directily from the tax payment you otherwise would make. But there's one important limitation. If you get income that is already tax free — as from social security, railroad retirement, military or veterans' pensions — you must subtract this from your $1,200 retirement income before you figure your tax credit. In other words, you can't exclude the same income twice. For example, if you get $700 a year from social security, you could count only $500 of other retirement income ;and you would get a new tax cut of only S100. However, you don't have to subtract military or veterans' disability payments from your retirement income. And there are four important requirements to meet before you qualify for the new benefit. First, most persons must be 65 over. But if you retire under a public pension system — if you're a retired school teacher, policeman or b'ther federal, state or local government worker—you can subtract 20 per cent of your income from that system even before you are 65. But you can't count other retirement income until you are 65 L/TTLI UZ— It's amazing how many parties turn out to be a contest between the finish on the furniture and that of the guests. or over. Limits Second, to be counted as a retired person and get the full benefit, you must make $900 or less from work. Any earned income above $900 must be subtracted from your $1,200 retirement income before figuring your tax credit. So if you make $2,100 or more from work, you are not considered to have retired and you get no benefit; but at age 75 or over, you can get the full benefit regardless of your earnings. Third, to qualify, you also must have made as much as S600 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 earn $600 for the 10 years immediately before your retirement. You can count any 10 years — even those long before you retire—and they don't have to be consecutive. A widow can qualify under this so long as her husband did. Fourth, you can't get this benefit 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 income may use this return. A husband and wife filing a joint return can get a tax credit on retirement income of up to $2,400 if each of them meets all the requirements — that is, both husband and wife earned $600 a year for 10 years, both are retired, and both have retirement income. Kentucky Vote In Primary Tomorrow FRANKFORT, Ky. (ff»—Voters of this border state tomorrow will nominate 10 congressional candidates in a quiet; prelude to a keen TT.S. senatorial race expected to match names—Cooper and Barkiey —regarded by some Kentuckians- as having political magic. Sen. John Sherman Cooper, Somerset Republican seeking reelection and former Vice President Alben W. Barkiey, Paducah Democrat running to regain the senatorial post he had before being elected "Veep" in 1948, are without strong opposition in their primaries. Each is backed by his state party organization. The 76-year-old Barkiey and 52- year-old Cooper have been speaking for some time—although doing little formal campaigning — and leaders of both, parties anticipate one of the most heated races in Kentucky history between the pair before the Nov. 2 general election. In District primaries tomorrow, eight nominees for the TT.S: House of Representatives also will be picked. Indochina Riot Kills 20 SAIGON, Indochnia (ff) — The French high command said last night at least 20 Vietnamese were shot to death near Hu in one of several demonstrations which fol- owed the cease-fire in central Viet Nam Sunday. Woman Kills Society Matron, 'Best Friend' MENLO PARK, Calif. (/Pi — A pretty Menlo Park society matron was shot and killed in the driveway of her fashionable home yesterday by a woman who sobbed hysterically "she was my best friend." Shot down before the eyes of two sons whom she was preparing to take for a swim was Mrs. Patricia Oberhaus, 36. Held on a murder charge after fleeing the scene in her new Cadillac was Mrs. Doris Gloss. 40. She could give no reason for the shooting, but police said her commitment to a mental hospital had been recently recommended by doctors. 5,000 Studebaker Workers Refuse 75 Per Cent Pay Cut .compared with $2.07 tor Ford, I General Motors, and Chrysler. Hoffman said that had the union accepted the 15 per cent cut, it would have dropped labor "'torts tt 3. $2,000 automobile by $60 to $75. Repairs Needed Postmaster Confirmed WASHINGTON (A — The Senate yesterday confirmed President Eisenhower's nomination of Cooper Hudspeth to be postmaster at Fort Smith, Ark. Acid will not dissolve a diamond. Aluminum Price Up PITTSBURGH (£») — Aluminum Co. of America increased by % cent a pound yesterday the price of pig aluminum and said recent wage boosts granted employes made the hike necessary. An Answer to Francis Cherry from J. H. (Jim) Grain July 31,1954 Wilson, Arkansas To the People of Arkansas: The July 31st issue of the Arkansas Gazette carried a political advertisement in behalf of Governor Cherry, in which I, Jim Grain, am referred to as a member of "the wrecking Crew" that "wasted millions of dollars of the taxpayers' money while serving as Highway Commissioner during the McMath Administration." Here, Francis Cherry, is my answer to your accusations. I have never been a member of any wrecking crew. I challenge Francis Cherry or any other man to furnish one iota of evidence that I have ever done any thing except something constructive during the time which I served as Highway Commissioner in both the Adkins and McMath Administrations. I further challenge Francis Cherry or any other man to furnish one semblance of evidence that I have ever personally profited from the office of Highway Commissioner. Serving as Highway Commissioner was not profitable to me, but actually cost me a great deal of my own money in addition to taking me away from my own business much of the time. I remind Governor Cherry that I was a member of the Highway Audit Commission to which he refers in his advertisement; that I attended all the hearings conducted by the Commission and signed the report! I am not and will never be a party to wrecking the Highway Department. The Highway Department is operating under a Constitutional Amendment which was adopted prior to Governor Cherry's inauguration. It is not within my power or that of any other person or group to change the manner in which the Highway Department is being operated: only the people have that power by voting to change the Constitutional Amendment. As Mr. Cherry quite well knows, Mr Faubus will not have the power to remove any of the Highway Commissioners which he has appointed. In my opinion, the Highway Commissions on which I served compare most favorably with the Commission which Mr. Cherry appointed. He has many times stated that the Highway Department is now free of politics and taken under credit for this situation over which he had no control. However, I am wondering if the Highway Department is so free of politics after all. Eastern Arkansas is represented on the Highway Commission by Dan F. Portis of Lepanto. If the other members of the Commission are promising roads and city streets to the same degree that Mr. Portis is, the Highway Department will not have any money for secondary roads for several years, if these promises are fulfilled. I am supporting Orval Faubus, but not because he was connected with the McMath Administration. 1 might call Mr. Cherry's attention to the fact that I did not support Mr. McMath in his recent campaign for the United States Senate. Before offering Mr. Faubus my support, I made a careful investigation of his character and ability, and I am convinced that he has the necessary qualifications of a Governor. I do believe he will not destroy the Highway Department. On the other hand, I believe he will make every effort to improve the operation of the Highway Department. WHY DOESN'T FRANCIS CHERRY RUN ON HIS OWN RECORD? A record which reflects an increase of EIGHT MILLION DOLLARS in the cost of State Government since he has been Governor; a record which reflects an increase of ELEVEN MILLION DOLLARS in public utility rates during his first term in office; a record which advocates a one hundred per cent assessment of all property in the State. Francis Cherry's political advertisement of July 31st is that of a desperate candidate; nothing more. Ouptea, A. ^rr. PITTSBURGH, Pa. (£>}—Howard Kelly, 26, long will remember his auto wreck—and so will various agencies. Kelly's car smashed a utility pole used for many purposes as subsequent events proved. A passenger riding with Kelly was 'hurt but he escaped injury. He stood by as emergency crews rushed to the scene. First came the police. Then an ambulance. In order came repairmen to fix a broken traffic signal control apparatus, another group of men to repair a fire alarm box and a third to repair a police call box. Then came the federal government, to repair a mail box. And finally, the light company sent a crew because vital electrical service in the area had been knocked out. SOUTH BEND. Ind. <•&—Some !o,000 workers at Studebaker Corp. I last night turned down a 15 per cent pay cut which International CIO United Auto Workers officials ! urged them to take to protect their ' jobs. With only half of the firm's workers voting, a 3 to 2 margin was given against taking the decrease in a show-of-hands vote which followed a heated 2V-> hour meeting. Paul G. Hoffman, Studebaker's board chairman, previously announced salaries to top executives had been cut 20 to 30 per cent in what he called a multi-million- dollar economy drive which started last Arpil. He added that 12 per cent of i Studebaker's executive personel j had been cut since the drive start- I ed and that the program has saved about 10 million dollars on an annual basis. Addressing the workers at the meeting were Louis J. Horvath, president of Studebaker Local 5, and other international officials. All recommended the pay cut and other contract revisions. The union officials said the cut would offer hope of stabilizing employment and increase overall take-home pay. Most of s'tudebaker's depart- ments have only been operating four days every fortnight since early this year. Employment has been cut in half: "Most of the worker rust couldn't seem to accept a pay reduction after averaging only $35 a week for the last six months," said Horvath. The company made no comment after the union action. Average wages at Studebaker are estimated at S2.37 an hour Bicycle Parts Complete Stock Parts & Accessories General Hardware And Appliance Co. 108 W. Main Phone 3-4585 Tremors Are Reported NEW YORK (£>) - Two "fairly sharp" earth tremors, believed about 4.700 miles in an undetermined direction from New York, were recorded yesterday on the Fordham University seismograph. Authorized Frigidaire Service Household-Commercial and Air Conditioning Adams Appliance Co. Phone 2-2071 Do you fed the heat HERE, foe Stop Joeing income in hot weather! G-2 Air Cbnd*. tionkig increases summqr- tune Tragnrrr myt lor *• AIR CONDITIONING • Ovkk and oa*y iastalUitto*. • G.E.'t unique a!!-tn-on* r«fng«ration system • s»als in tovmgs, • Ri a-year G-E P)»t-Yok» Protection Plan, • T«fim to twit yovr bv4y*fc GENERALELiCTRie 2337 Birch SERVICE Phorvt 3-6986 YWR CHOICE FREE FROM A SELECTED GROUP OF ELECTRICAL APPLIANCES purchase of any - '->litic«l Adv. paid for by J. H. Crain, Wilson, Ark, KELVINATOR Refrigerator Range Freezer up to 2 years to pay EXCLUSIVE OFFER! Which small appliance would you like? It is yours in addition to our regular liberal trade-in allowance — no extra cc*t—no strings attached — as a bonus with you* purchase. GENEROUS TRADE-IN ALLOWANCE TOO! Get our regular liberal trade-in allowance plus this free gift during this sale. Trade now. Offer ends when present supply h exhausted/ B.FGoodrieh 417 W. MAIN

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