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EVENING THURSDAY, AUGUST Ifi, 1063 ^Proposed Income __^ ^^ ' .*- iTax Revisions ^Broadly Beneficial NOTE-fhe tax bill Bow being Shaped by the House Ways and Means Committee is of bread-and-butter interest to every American who pays taxes. Although a long road to enactment lies ahead, the measure has ad- Vanced far enough to examine its dollars and cents meaning to you. By EDMOND LEBKETON WASHINGTON (AP)-The tax bill Is moving well enough along In Congress to have a look now at what It would do for you—ot- to you. But before getting to the fine points, the big picture should be made crystal-clear: As things stand now, the measure would cut your tax payments. True, the tax bill has a long way to go before it reaches President Kennedy's desk. The House Ways and Means Committee has lots of work still to do on the measure. Then it has to clear the House Rules Committee, face the full House and travel over to the Senate for another round of hearings and floor action. There it may run into a filibuster on civil rights. Tliis being understood, let's have a look at the tax bill as it stands now and see what it means to you if the measure in its present form wins approval. Pay Less M you pay any taxes at all, you'll be paying less. You would have to have a most peculiarly constructed income not to get some benefit from an across the board slash of tax rates, even though the package also includes some tax-raising features. The Treasury puts the average rate cul, for taxpayers with tax able incomes through $60,000, at 15',4 per cent. This picture is painted with a broad brush and applies to the rate changes when they would be complete, Jan. 1, 1965. Take it as a rough guide if you Hke^-bUt no more than that. For 1964, figure two-thirds of the full saving. However, in tax matters, everybody is a special case. How much benefit you would actually reap depends on a number of factors. Your income bracket, whether you receive dividends, whether you drive your automobile a lot, whether you buy and sell stocks, whether your income fluctuates widely from year to year — all these and more can be important. Guidelines Some guidelines can be plotted, subject to possible change. Among them are these, all applying to the complete revision planned for 1965 and subsequent years: —If your income is either very high or very low, you would do better proportionately in the reductions than the man in the middle. The Treasury says a typical taxpayer, if there is such a creature, married and with two children, earning $4.000, would save $100, about 41 per cent of his present tax bill. His counterpart in the $10.000 class would save $202, or 16.9 per cent. —If you have been in the habit of itemizing your deductions and claiming the amount paid in state gasoline taxes, a bit of your benefits would be nibbled away. Local gasoline, liquor and tobacco taxes would no longer be deducti- FORTY ODD By Peg Bracken end Rod Lull "Yes sir, we've finally got the kitchen rigged so Jen doesn't have to do a thing!" ble, although income, real eslate, and general sales taxes still would be. I,ess Deductions —And if you dent old trusty's fender, you would not be able to claim the whole repair bill as a casualty loss, only the amount over $100 for each mishap to car or other properly. —If you have considerable income from dividends, one change the Treasury wants made would nick your over-all tax gain. This would be repeal of the 4 per cent tax credit, a considerable offset to the tax benefit of many higher income taxpayers. There may be a compromise that would mini mize the effect on smaller dividend recipients. —But if you are thinking of selling some stocks, real estate, or other property you have held at least two years and on which there will be a profit, you're in luck. You would only have to in elude 40 per cent, instead o.f 50 per cent, of such capital gains in your taxable income. And if you're in a high bracket, your top capital gains tax would be only 21 per cent, instead of 25. Stiffened Rules —One or two cautions: If you are in the business of building or buying real estate, taking maximum depreciation and selling in a few years to take the most advantage of capital gains—you face stiffened rules. And if in the future you Inherit property on which gains have accumulated, you would encounter somewhat tight or tax treatment. —On fringe benefits, the changes would have an uneven el- feet. If you get sick and your employer continues your pay, you would get a special deduction for it only after a month, instead of the present rule of a week. —If you are 65 or older, the new law would give you at least two specific benefits. Your purchases of medicines would be fully deductible, without regard to the present 1 per cent of income floor. 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