Imperial Valley press., 1943-01-19
CAPITAL TALKS
by
Peter
Edison

gs' Edison
In addition to putting limitations
on Sala!.' increases and decreases
regulations of the new Salary Stab
Hszation Unit in the Treasury De-
eartment put ceiling on the
amount which may be paid to any
che during 4 calendar year. These
regulations have TIE effect OF limit
ng salaries TO maximum OF
S25 0OO year after the payment OF
federal income taxes
The wav this figures out, ,"an
NAV not receive more than S5@,-
I2S.53 gross salary. bonus, etc, in
1912, nor more than $4,000 in
Ie4". The difference is explain
ed bv the fact that income taxes
will take a bigger wick out of
salary i'll 1912 T. IN 1943.
Income from other than
s&laries-divi3 or instance
are not inc n this restriction
because " Congress wrote the
!2W. sta On was limited to
WAGES q iries. The specific
limltatiC 1000 net was not
the idea reSS. however, but
figure he President, Ito
provide grI uality in contri-
5uting to the 81. fort
While there Il. very definite
p4 DIVISIONS in the Salary Stabiliza-
| Ton Units regulations on salary
| limitations. these restrictions will
apply to only 20,0C0 or 25,0G0 peo-
rle in the United States. SO the
general rule will be to handle each
Of these cases separately. Indi-
Vidual attention is necessary, any
way for no two OF these eases Will
come out alike.
UNDUE HARDSHIP"
In fact. where an overS25 ,000a-
year Salaried man can establish
that the restrictions work an 'un-
due hardship on him, he will be
allowed to make a little more than
S25 C00-enough more to correct the
hardship
For instance, if Mr.. Hundred
Grand used 10 make 100000 4
Year net and gave $4,000 to
charity, it might be a hardship
for him TO rive $4,000 if his net
income were limited to S25,000.
The government might therefore
allow him enough more salary to
NIKE the $40 600 donation. But
il Mr.. II. Grand could bet by with
a 10 per cent of $4,000 gift to
charity, or S25O0, he might not
set any extra salary allowance.
On fixed obligations such as in
Slrance payments, payments on in
debtedness and payments of fed /
eral income taxes. the Salary /
Sterilization Unit will probably be .
less charitable. To show undue
hardship in being able to meet I
these fixed financial obligations,
the high-salaried man will have !
to prove that. after resorting to /
his income from all sources, ex-
,smLt from Stabilizat:On control
Or uneXempt. he is still unable to
make these payments without SELL
ing scme of his assets at a sub
stantial loss.
To give an idea of how hard i
hearted Uncle Sam is going to be |
about such cases, it can be men
toned that having to draw money
cut Ct the bank, having to sell real
estate Victory bonds or any other
securities at approximately the
price paid for them or even at
little loss, will not be considered an
undue hardship.
YOU CAN'T BEAT THE RAP
Bea ting the salary stabilization
rap for the high-salaried guys will
be practically impossible Taking
out a lot Of new insurance now TO
give 'oufself greater obligations
won't be allowed. Putting the wife
On the payroll to receive part of
the husbands salary won't be al
lowed. Incorporating yourself won't
be allowed. All the officials of the
Salary Sterilization Unit are ex-
perienced incoTc tax collection
men. The know the tricks.
Then, too, the penalties for
violating The regulations of the
Salary Sterilization Unit are
particularly severe. There is
Dasic criminal penalty o. $1,000
fine or one year in prison for an
employer or employe wi,fully
violating regulations.
Cn top Of tnat, the entire amount
: any Unauthorized salary pay
c.ent is to be disregarCled by oil
departments of the federal govern
tent This means they'll be dis
regarded in determining costs OF
expenses Of an employer having a
contract with the United States.
n determining ceiling prices under
Ike EmeIgencJ Price Control Act
o. any other law or regulation, ard
/" calculating allowable deductions
lnder the revenue laws.
Thus, if a movie stars $1,000 per
&etk salary were increased to $500
week without authorization, the
E-nalty would apply on not Just
he $500 per week increase, but oil
he whole $500
This wage and salary stabilization
order has teeth in it.
Walnut Quota for