The Waterbury Democrat., 1943-01-09

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 Peter EdsOn 1922, or more than $67 200 in 1943. The difference is explained by the fact that income taxes will take bigger kick out of 8 salary in 1942 than in 1943.
 Income from sources other than salaries-dividends, for instance are not included in this restriction because when Congress wrote the law, stabiliZation was limited to wages and salaries. The specific limitation of 25,000 net was not the idea of Congress, however, but a figure set by the President, "to pro- vide greater equality in contributing to the war effort"
 While there are very definite pro visions in the Salary Stabilization Units regulations on salary lin1ita- tions these restrictions will apply to only 10000 or 25,000 people in the United States, 50 the general rule will be to handle each of these cases separately. Individual atten- ton is necessary, anyway, for no two of these cases will come out alike.
 UNDUE HARDSHIP"
 Tn fact, where an over-25 ,o00-a- year salaries man can establish that the restrictions work an undue hardship" on him, he will be al- lowed to make little more than $25, ,000-enough more to correct the hardship.
 For instance, if MT. Hundred Grand used to make $100,000 a year net and gave $10,000 to charity, 1t might be hardship for him to give $l000o if his net income were lim- tied to $25,0o0. The government a''ght therefore allow him enough more salary to make the $10,000 donation. But if MT. H. Grand could get by with 10 per cent of $25, ,Ooo gift to charity, or $2,50o, he might not get any extra salary al- lowance.
 On fixed obligations such as in- surance payments payments on in- debtedness and payments of federal income taxes, the Salary Stabiliza- tion Unit will probably be less char itable. To show undue hardship in being able to met these fixed finan- clal obligations, the high-salaried man will have to prove that, after resorting to his income from all sources, exempt from Stabilization control or unexempt, he is stil un- able to make these payments with out selling some of his assets at a substantial loss.
 To give an idea of how hard hearted Uncle Sam is going to be about such cases, 1t can be men, toned that having to draw money out of the bank, having to sell real estate, Victory bonds or any other securities at approximately the price paid for them or even at a little loss, will not be considered an url- due hardship.
 YOU CAN'T BEAT THE RAP
 Beating the salary stabilization rap for the high-salaried guys will be practically impossible. Taking out a lot of new insurance now to give yourself greater obligations won't be allowed. Putting the wife oon the payroll to receive part ot the husbands salary won't be al' lowed. Incorporating yourself wont he allowed. All the officials of the Salary Stabilization Unit are ex- perienced income tax collection men. They know the tricks.
 Then, too, the penalties for vio- lating the regulations of the Salary StabiIization Unit are particularly severe. There is basic criminal penalty of 1000 fine or one year IT prison for an employer or employt wil,fully violating regulations.
 On top of that, the entire amount of any unauthorized salary payment is to be disregarded by all depart r!ents of the federal government Iris means they'll be disregardee in determining costs or expenses oi an employer having a contract wttf the United States, in determining ceiling prices under the Emergencl Price Control Act or any other law or regulation. and in calculating al lowable deductions under the rev enue laws.
 Thus. if a movie stars SllO00 pel week salary were increased to q ,oO' n week without authorization. th' penalty would apply on not just tn $500 per week increase but on th' whole sl 800.
 This wage and salary stabiliza'