The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-11-29
ey Roger 5sbson

First, let me say a word 10 young
business men who claim that they
have not the opportunity OF MAKING
a fortune which their elders had
They claim that at their age tbs
money which their elders were per.
mitted TO save for a business nest
egg is now taken away by the gov
/ eminent in the form OF taxes. Let
me say this is merely an alibi for
laziness, inefficiency and extraya-
giant ideas.
Severe Taxes Benefit Young People
Let us assume man with a sal.
AIRY OF $4,000 who has a wife and
| two children. His Federal tax
would be about $3.50. 1t is true that
be has this much less money TO
save or invest toward buying an
/ interest in some business. On the
other hand, although the net in.
come. after taxes. OF the young eX.
ecutiye is reduced by tax Of about
l2 per cent, his employer would
probably be obliged to pay . tax OF
so to IS per cent OF his net income.
This reduces the value of the bust.
ness 10 the employer and causes
him to sell il much cheaper than IL
these heavy taxes did not exist.
Before these Federal taxes went
| into effect a man could die and
I leave his business outright to his
family rs the death taxes were very
small. Today, however. in a great
many cases the family is compelled
| 10 sell a part interest in the bust.
ness in order TO secure funds TO
pay the death taxes. This gives an
exceptional opportunity to young
executives employed in the bust
ness to secure an interest at very
low price.
Low Money Rates Help Young
People
The present Federal ceiling on
Invertebrates enables young people
today 10 buy a home or business
and pay for II with an interest rate
of perhaps only half what they
would be obliged TO pay before
these taxes went into effect. |, my
self, am a director of bank which
has today voted to loan a young
man money at per cent in order
TO buy an interest in a department
| store. This same money would have
cost him 6 per cent fifteen years
ago.
business success is not a matter
OF legislation: but rather OF hered-
ity. industry. integrity, and vision.
Whatever our system of govern.
ment, a certain group, who save.
work and intelligently plan will al
ways be on top. All young people
have a greater opportunity to sue.
coed in the true sense today than
ever before. Even children OF the
well-to-do may be better off under
high Federal taxes. There is such q
thing as leaving children too much
money.
Taking Profits VS.. Losses
Now, just a word to those en-
ployers and investors who have
large tax bills: Previous Decem.
bers ! have called attention to the
importance OF taking losses in or
der to offset certain gains. In many
vases 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 IS per cent OF
one full tax year so as TO get on
''pay-as.you-go" basis. After much
struggle. IL was agreed to throw out
IS per cent OF either 1912 or 1913.
whichever Is the smaller This
means that one must estimate his
1943 income and compare the same
with his 1912 income and pay the
% per cent excess tax on which
ever is the larger. Now. ! find my
friends are instinctiyely doing the
wrong thing by trying to show their
l943 income as small as possible
when in many cases much money
could be saved In taxes by showing
1t as large as possible. Let me illus
trate.
When taxpayer last Decem Der
sold securities at a profit he was
obliged to pay 25 per cent in taxes
on said profit. This December. how.
ever. il his 1913 income is larger
than his 1912 income. he is obliged
to pay tax Of only % per cent OF
said % per cent as the Government;
/ 'forgiyes' 10 per cent OF either 1912
or 194S. whichever is the smaller.
This means that this is year when
taxes can sometimes be saved by
taking profits as well as by taking
losses II taxpayers will 90 at II in.
/ diligently. Hence, consult your law.
yer, banker or accountant.
Multiplying Dollars
Even Industry gets one break In
the present tax law, namely, the
privilege Of replacing old machinery
With new machinery. Old merchsn.
disc with new merchandise and all
kinds OF scrap with profitable items
and. having the government pay