Newspapers / The Franklin Times (Louisburg, … / Nov. 26, 1943, edition 1 / Page 2
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HINTS TO TAXPAYERS Babson Advises Readers To Ana lyze Tax Situation By ROGER W. BAUSON' Babson Park, Mass.. Nov. 26. ? First, let me say a word to young BABSON businessmen wno claim that they have not the op portunity of ma king a fortune which their eid ers had. They claim that a t their age the money which their elders were permitted to save for a business nest egg is now taken away by the government In the form of taxes. Let me say this is merely an alibi for lazi ness, inefficiency and extravagant Ideas. (SEVERE TAXES BENEFIT YOUNG PEOPLE Let us assume a man with a I salary of $3,000 who haqa wife' and two children. His Federal j tax would be about $350. It isj true that he has this much less money to save or invest toward 1 buying an interest iu some busi- < ness. On the other hand, al-^ though the net income, after tax- < es, of the young executive is re-j' duced by a tax of about 12%, his employer would probably be J obliged to pay a tax of 50% to ' 75% of his net income. This re-!' duces the value of the business ' to the employer and causes him t to sell it much cheaper than if these heavy taxes did not exist. f Before these Federal taxes 1 ?went into effect a man could die ( and leave his business outright;1 to his family as the death taxes ; ?were very small. Today, how ever, in a great many cases tho^ family is compelled to sell a part < Interest in the business in order c to secure funds to pay the death i taxes. This gives an exceptional t opportunity to young executives i employed In the business to se- 1 cure an interest at a very low price. < iaj n nu.ir>i ndira nfiLT YOUNG PEOPLE The present Federal ceiling on ' interest rates enables young peo- t| pie today to buy a home or busi- . ness and pay lor it with an in terest rate of perhaps only half I' what they would be obliged to pay before these taxes went into j effect. I, myself, am a director^ of a bank which has today voted j to loan a young man money at 3% in order to buy an interest ( in a department store. This , same money would have cost him 6% fifteen years ago. Business success is not a mat ter of legislation; but rather of i heredity, industry, integrity and vision. Whatever our system of government, a certain group, who save, work and intelligently plan, "will always be on top. All young people have a greater opportuni ty to succeed in the true sense today than ever before. Even children of the well-to-do may be better off under high Federal tax es. There is such a thing as leaving children too much money. TAKING PROFITS I VS. LOSSES x Now, just a word to those em ployers- and Investors who have large tax bills: Previous Decem bers J have called attention to the importance of taking losses in order to offset certain gains. In many cases this should be done today. On the other hand, a new factor enters the situation this year which has never happened before. This year an amendment to the Federal Tax Law threw out 76% of one full tax year so as to get on a "pay-as-you-go" basis. After much struggle, it was agreed to throw out 76% of either 1942 or 1943, "whichever 1b the smaller." This means that one must estimate his 1943 in come and compare the same with his 1942 income and pay the 25% excess tax on whichever is the larger. Now, I And my friends are instinctively doing the wrong thing by trying "cD show their 1943 income as small as possible when in many cases much money could be saved in taxes by show ing it as large as possible. Let me illustrate: When a taxpayer last December sold securities at a profit, he was obliged to pay 26% in taxes on said profit. This December, how ever, if his 1943 income is larger than his 1942 Income, he is obliged to pay a tax of only 26% of said 26% as the Government "forgives" 75% of either 1942 or 1943, whichever Is the smaller. This means that this is a year when taxes can sometimes be sav ed by taking profits as well as by taking losses if taxpayers will go at it intelligently. Hence, con sult your lawyer, banker or ac countant. MULTIPLYING DOLLARS Even industry gets one break in the present tax law, namely, the privilege of replacing old ma chinery with new machinery, old merchandise with new merchan dise and all kinds of scrap with profitable items and having the government pay most of the cost. Br selling these outmoded things at the present time, a business concern mar from <0-90% over what mar I* poaaible after j Pulpwood protects their loved ones ! IHI fflOilllllWHr?^WM? mi Ill n 1 1 mi imimi ii WOMEN workers in an Eastern plant put flnishing^tfouches on gar masks made for our fighting fospts overseas. Linings, filters and the new transparent plastic glasses are made from pulp wood, which also produces smokeless powder, rayon and paper for flare and suppl> parachutes, shell casings, containers for shipping munitions, food blood plasma. Your trees can save lives. Cut them todav! 14-BILLION-DOLLAR GOAL SET FOR BIG FOURTH WAR LOAN Washington. ? The goal for the Fourth War Loan drive, sched lled to begin Jan. 18 and close Feb. 15, was set at $14,000,000, )00 today by Secretary of the Treasury Henry Morgenthau, Jr. The figure Is $1,000,000,000 ess than the goal in September's Third War Loan drive and some (4.000,000,000 short of the to al actually subscribed ? in the hlrd drive, Morgenthau said. Heavy emphasis would be plac ed on sales to individuals, who were asked to subscribe $5,500. )00,000 ? about $500,000,000 nore than their September sub icriptions. State war finance committees ire being expanded and a large :orps of volunteer salesmen will rarry the campaign to every home tnd plant in the nation to meet ;he "necessity of increasing the lumber of people who are buying war bonds," Morgenthau said. The following securities will be ifTered: Series E, F and G saving londs in denominations of $25 to (1,000; series C saving notes; I V4 per cent Treasury bonds of 1965-70 in $500-$1,000,000 de nominations; 2 1-4 per cent rreasury bonds of 1956-59 in the same denominations; 7-8 per cent one-year certificates of indebted ness in denominations of $1,000 to $1,000,000 and in coupon form only. Morgenthau appealed to secur ities markets not to trade in any of the issues until after the drive ends and urged bankers not to make speculative loans. ? ? - - - - the War is over. Do so this De cember as after World War II you may not either have the money to buy the new equipment or the above-mentioned tax ad vantage. Now, iust a word for heirs and charities. The present law al lows every taxpayer to give $3,000 this year to any person without paying a gift tax wjhich in many cases would ordinarily run from 20-50%. It further allows the giving of 15% of one's income to charities which gift is tax-exempt. For instance, a person in a 50% bracket can give away $1,000 with it costing him only $500. Furthermore, if a taxpayer gives away securities instead of cash he ca* (1) avoid the tax which he would pay on the profit; (2) be allowed contribution deduction for the market value of the se curities; and (3) then Invest the money he would ordinarily con tribute in this same security, thus establishing a higher cost-price for futureT sale. When one con siders the tax deduction for con tributions, plus the saving through not selling, and tops these savings off by replacing, af ter 30 days, the same securities, he may find that It is indeed pos sible to save through generous giving to your relatives, your church or some useful charity. Social Security Figures released today by the Raleigh office of the Social Secur ity Board show that 1.067 persons in this area are receiving month ly payments of old age and survi vors insurance. A total of $14. 125.00 in such monthly benefits was paid during the month of October to men, women, and chil dren of the Raleigh area; that is In the counties of Franklin. Johnston, Vance, Wake, Warren and Wayne. John H. Ingle manager of the Raleigh office of the Social Se curity Board said that included in these monthly benefits in force were 295 workers past age 65. representing total payments of $5,492.00 a month; 70 aged wive3 of insured workers, $677.00 a month; 504 children of retired or deceased workers, $4,897.00 a month; 26 aged widows of deceas ed workers, $461. 00 a month; 164 widows with young choldren, $2,487.00 a month; and 8 par ents of deceased workers $lH.0fi a month. Mr. Ingle said that awards of monthly benefits to workers past 65 had not increased thiB year as might normally be expected, par tially as a result of better em ployment opportunities for older workers in war production. Many workers who are eligible for old age and survivors insurance pay ments have not claimed their re tirement benefits because they prefer regular jobs with good pay instead1 of the modest income pro vided under the old age and sur vivors insurance system. "Many of these older workers," he said, "will receive larger benefits when they do apply, because they are now earning higher wages than they did in the past. On the oth er hand, there are some workers, 65 years old and over, who are receiving lower wages now than they did formerly. These should go to the Social Security Board office and find out whether or not it would be to their advantage to file an application for benefits at this time." Mr. Ingle explained that bene fits are based on average month ly wages, but the law permits a worker who has reached the age of 65 to file his claim and' thus "freeze" the amount of his retire AS ONE SERVICE MAN TO ANOTHER Of course, I don't get my pay check from Uncle Sam, but I ture am a "aervice" man when it comea to workin' in cloae cooperation with the armed force*. Seema like moat of the army, navy and marine corps ride my but sooner or later. Bat you're welcome, even if we are crowded to the gunnels, as the sailor said. When I'm haulin' you guys in uniform. I feel like I'm doing my bit for the country. Bdl-tUm huA dtfm* GREYHOUND Next Year Will Be Different < NEXT year will be different. Not only the weather, and markets, and the needs of the country. Out jobs will be different, too. Because next year we're going to do those jobs differently ? and we hope better! # We, whose job is producing goods and services, have been making resolutions like this for years. And we've been keeping them! For in our kind of business, you either keep on finding better ways of doing things, or ? you go backward! And if enough people do that, the thing we call progress bogs down. That's why farmers keep on trying new seed, and fertilizers, and machines, and strains of stock. That's the reason industry carries on research ? another name for a constant search for new knowledge and better ways to do things. Because most of us have been doing this for years, America has had the highest standard of living ?n the world. And it's the reason, too, that American production is doing so much today to bring victory. After the war, America is going to need more than ever men with the courage and enterprise to invest time, money, and hard work in the search for better things. And if America's producers understand each other, and each other's problems, we'll be able to do these all important jobs better. General Electric Co., Schenectady, N. Y. Hear the General Electric radio programs: "The G?E Ail-girl Orchestra" Sunday 1 0 p.m . EWT. NBC? "The World Today" news, every weekday 6:45 p.m. EWT. CBS. BUY WAR BONDS GENERAL ||> ELECTRIC ment benefits even though he Joes not intend to retire immedi itely, and does hot expect to :laim benefits until he gives up his job. Payments totaling $42,300.00 have been made to individuals in this area as lump-sum death pay ments since the Social Security Act Amendments because effec tive January 1, 1940. These pay ments were made only in those lases where the deceased wage earner left no 3urvivor who would become entitled to a monthly benefit. ? On Pay Day, Buy Bonds ? A Scot was engaged in an ar gument with a conductor as to whether the train fare was 25 or 1 3 0 cents. Finally the disgusted 'conductor picked up the Scotch man's suitcase and pitched it off the train Just as they passed over a bridge. It landed with a splash. "Mon!" screameff the Scotty. "Ain't it enough to try to over charge me? Now you try to drown my little boy!" Putting farm machinery in a ! tool shed when it is not in use is the best and easiest way to pro ject it. THE STERLING STORE COMPANY Franklinton's Shopping Center Victory gardeners still have time to sow rye as a winter cov-j: er crop on all bare spots In their! gardens. j ROOF Get ready for bad weather! Re-roof or repair your roof now. We paint and re-coat metal and built-up roofs. Phone 308-1 or 467-6 for a FREE estimate. SOUTHERN ROOFING & SIDING COMPANY P. O. Box 144 LOUISBtJRG, N. C. Office located next to lionlsbnrg Theatre <> Louisburg Wife ? Was her marital trouble incompatibility? Husband ? No, Just the first two syllables. USED CASS FOR SALE We have a nice selection of clean late Model Cars ATTRACTIVE PRICES AND TERMS. 4. ; Motor Sales Co. Phone 833 HENDERSON, N. C. TIRES - TIRES GRADE m & GRADE I TIRES Bring Us Your Certificates WE HAVE A SHIPMENT OF 600 x 16, 650 x 16, 700 x 16 and 700 x 15 GRADE III TIBES ROLLING NOW. WILL BE IN BY SATURDAY, NOV. 20. "Come If You Can, Call If You Can't" Fuller's ESSO Service O. P. A. Inspection Station No. 1 Opposite Post Office Tel. 357-1 Louisburg, N. C. RANGES & HEATING STOVES STOVES AND RANGES ARE RATIONED. APPLY FOR YOUR PERMITS AS SOON AS POSSI BLE. TIN HEATERS ARE NOT RATIONED. Automatic $^#7 50 WOOD HEATERS PAINT WITH VITA - VAR ! No Better Paint Made 100% Pure Beady Mixed $0.49 Outside House Paint Gal. "HARD TO GET ITEMS" * BICYCLE TIRES & TUBES * ELECTRIC WIRE & CABLE * BICYCLE CHAINS and PEDALS * GALVANIZED PIPE & FITTINGS JUST RECEIVED! Truck load of Bed Room $jQ.95 < Suites to sell from ? up BACK THE ATTACK WITH WAR BONDS. H. C. TAYLOR Hardware & Furniture Phone 423-1 Loulsborg, N. 0.
The Franklin Times (Louisburg, N.C.)
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Nov. 26, 1943, edition 1
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