The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-10-09
a.HAalas sARRRTT

eknuedikn oeSense bPS0okns ana
acute dget problems, he govern.
mentans - give about - million
indlviai income taxpayers Q tar
cut lrting Jan. !.
y reduction, the first since
se1will be about 10 PER cent for
threat bulk II taxpayers. Dui
n pereentage drops sharply In
higher income brackets down
fonly one per cent for Z single
An making ons nailliOn dollars
year.
1hs Eisenhower administration
d pledged 70 let The reduction take
effect, barring IN unexpected and
extreme emergency. Due b expire
On the same date II The excess
profits tax Co businesses.
The income tax change WIN cost
The Treasury about three billion
dollars . year In revenue, at Q
time when high spending throws
o shadow over efforts 70 balance
The budget.
But 1854 10 an election year, and
~ II any voices have been raised
against the reduction. II more rev.
enue Is needed, Il win be sought
elsewhere.
The prospective cut follows two
Increases voted after the Korean
War started. II merely cancels Che
second increase, In 1851. So you'll
still be paying more than you did,
say, In 1910.
Republicans and Democrats al.
ready are sQuahhling over who
should get credit for the cut. Dem
ocrats say It's their feat, because
they were the majority party when
Congress wrote the Jan. / expira.
ton date into that 1851 law. But
Republicans say no Tar cuts would
Be possible now II they hadn't
made BIC reductions In federal sp.
preparations.
Al any rats, revenue officials
eautlon against counting your
chickens before they hatch. They
point out the reduction starts
titalics) on Jan. /. But you don't
Tile returns on 1854 income until
1855. So when you fill out those re.
turns next March, you'll still be
dealing with 1853 income-at the
higher rate.
The bic immediate effect VIII
be on some ~ million workers
whose income taxes are deducted
from paychecks. After Jan. 1, the
payroll withholding rata viii be
reduced from 20 per cent to 1s
per cent of your income, after al.
pwances for yourself and each de.
pendent.
For Q single person with no de.
lendents and making less than
1900, the percentage reduction
lnder this years tax biz win b
3 per cent. Il climbs gradually
p 1917 per cent ct Sio.ooO income
nd then drops 70 rs per cent Al
5000 income. ID per cent al
800, 200.
For . married couple with two
children, the reduction starts a
- per cent In low income levels
md rises to 1917 per cent al $40.
0o. then drops 70 7.t per cent q
100000, ! per cent At 500, 900,
ead L. per cent q one millior
dollars,
Dollarwise, for 4 worker with No
dependents, the annual reduction
amounts to $50 III 81 600 income,
A.4o ct 5000, slOa AZ 5000. Saii
$2O. 900. $2.ss0 at Sl0o. 900, and 81.
90 at one million dollars.
! For Q married couple with two
dependents the dollar reductions
would be $3.50 at 5000 income.
$3.50 at 5000, $129.00 at 5000
Slsi.e0 ct si0.oOo, $3.50 at 60, 900,
W,lzo 81 sioo, 900 and Si9,7oe a
one million dollars.
The minimum rate On taxable
income drops from 2a.a per cent
70 20 per cent. The maximum rata
on income above 500, 900 drops
nom u TO d per cent. And The
maximum rate for any one tax.
payers overall income drops from
% 70 o. per cent.