Indianapolis Times, Volume 44, Number 224, Indianapolis, Marion County, 27 January 1933 — Page 10

PAGE 10

BUSINESS MEN. FARMERS FACE HIKE IN TAXES Special Deductions Will Be Allowed Both Classes, However. ThU lx the fifth of nix articles detailing the now federal Income tax reguiation that upward of three million more Citizens must meet before March 15. BY ROBKRT TALLEY NEA Service Writer WASHINGTON. Jan. 27.—Business men, professional men, farmers and corporations face increases in federal income taxes in the new law. The tax on corporation incomes is increased from 12 per cent to 14Vi per cent in the case of corporations filing consolidated returns. The $3,000 exemption formerly granted small corporations has been eliminated. Incomes of business men, professional men and farmers are subject to the same tax increases as those of salaried persons or wageearners and to the same personal exemptions and credits. Special Deductions Made But business men, professional men, and farmers also are entitled to certain deductions which reduce their taxable income. Typical deductions allowed for a mercantile business are amounts paid for rent, light, heat, hire of clerks and other employes, advertising, stationery, stamps, telephone, delivery and other expenses incident to the conduct of the business. The expenses of a manufacturing business include labor, supplies, power, selling costs, administration, etc. The farmer may deduct all amounts paid in production, harvesting, and marketing of crops, including labor. He also can deduct for repairs to his farm buildings, but not to his dwelling.

Expenses Arc Allowed A doctor, dentist, lawyer or other professional man may deduct all necessary expenses in the pursuit of his profession. These include his office rent, salary of assistants, cost of supplies and even the expense of operation of an automobile used in making professional calls. If a physician uses part of his home for an office, he may deduct, as a business expense, the rental value of the rooms so occupied. Also, he may deduct a portion of the wages paid domestic servants whose time is partly occupied in caring for these rooms. Membership dues in professional societies may also be taken off. If a business man or professional man uses the same automobile for both business and pleasure he should allocate the operating expense on the basis of the time used for each. Auto Use Cuts Tax For example, if the total expense of operation and maintenance, plus depreciation, in the taxable year amounted to SBOO and the car was used three-fourths of the time for business and the remainder of the time for pleasure, he would be allowed to deduct from his taxable income S6OO. Traveling expenses, if incurred in the course of one’s business or profession, are deductible. This includes the amounts spent fir food and lodging and even for tips—but the law says the tips must be “reasonable.” For the benefit of automobile owners, it should be explained that —regardless ol whether the machine is to be used for business or pleasure—the purchase price can not oe deducted from income. If used for business, it is a capital expenditure; if used for pleasure it is a personal expenditure—and both deductions are expressly prohibited by :nt law.

Credit on Gas Taxes However, if used exclusively for business, all expenses of operation, plus depreciation, can be deducted In either case, it is permissible to deduct sums paid for registration fees, taxes, etc. While the federal gasoline tax of one cent a gallon can not be deducted by toe consumer, credit may be obtained for state gasoline taxes if the state law levies this tax on the consumer and not on the dealer. Even President-Elect Roosevelt must pay an income tax on his $75.000-a-year presidential salary after he takes office March 4. since the revenue law passed last summer taxes the salary of the President and of federal judges who take office after its enactment, Representatives, senators and all federal employers already are paying. City, state and municipal employes, however, are exempt from tile federal income tax if their services are rendered in connection with the exercise of an essential governmental function, as distinguished from a proprietary function. For example, the governor of a state, the mayor of a city, councilmen, school teachers, firemen and policemen do not have to pay income taxes to Uncle Sam; but the tax must be paid by employes of a municipal water plant, electric light plant, or street railway, since their activites are proprietary rather than governmental in character. Items of income exempted in- ! elude proceeds from a life insurance policy paid by reason of death. J inheritances, and state workmens compensation. Next: Prospects of more income tax increases in 1933. PRISON RIOTING FEARED Continued Idleness of Inmates Is Dangerous, Warden Warns. By United Pre** SALT LAKE CITY. Jan. 27 Continued idleness of inmates in the Utah state penitentiary will result in serious disturbances, R. E. Davis, warden, warned state authorities. Only two-thirds of the 300 convicts are employed, he said. “The busy prisoner has no time to become involved in plots of escape or trouble of any kind." Davis said. “Idleness breeds discontent and allows ‘repeaters’ to go weeds of rebellion w-hich frequently results in bloody riots.’’

Let’s Explore Your Mind BY DR. ALBERT EDWARD WIGGAM, D. Sc.

d&F m CAN YOU JUDGE / j A PERSON'S CHARACTER / Jj|| *.*[ 'Eb"oa”Ho">rtal ***• HI 3 HA& THE ENTRY SIA I rnD /V > Wt OF WOMEN INTO BUSINESS <(■ CHANGED MANS^TASTES

AUTHOR’S NOTE—These answers are given from the scientific point ot view. Not all moral questions can be answered with absolute scientific accuracy, hut no decision as to what is right conduct or sound morals is possible without science. Science puts the rights of organized society above the rights of individuals.

1. No, they are far more moral, as a rule. F. A. Woods, biologist, showed that the members of the Royal European families who are rated high by historians for intellect are almost uniformly rated high for moral character. Terman, psychologist, found brilliant children- of 9 have the same moral development as average children of 14. Hartshorne and May, Yale psychologists, found high intelligence

SELF-CONFIDENCE CHART Dr. Wiggam offers this chart designed by a noted psychologist. It is an important aid in SelfAnalysis that builds self-confi-dence on a sound basis. It will be sent with the compliments of this newspaper upon request accompanied by stamped (3c) selfaddressed return envelope. . , . Address: Dr. Albert Edward Wiggam, care of this newspaper.

in school children the chief sign they would not be likely to lie, cheat, or steal. After all, morality simply is intelligent conduct. 2. Many “handwriting experts” honestly think they “hit” people's characteristics. Os course they do, because

Dr. Wiggam will be glad to answer questions dealing with problems ol conduct, morals, beliefs, husband and wife, parent and child—any question in the field of human relationships. Questions of general interest will be answered in this department. If personal reply Is desired enclose stamped, (3c) self-addressed envelope. Address Dr. Wiggam in care of The Indianapolis Times.

AGE PENSIONS URGED Dcluse Pleads for Plan Before Engineering Society Members. Declaring old age pensions are more economical and humane than the present poor house system, Otto P. Deluse, former grand president of the Eagles. Thursday urged members of the Indianapolis Engineering Society to support the pension measure which W’ill be presented be-

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everybody has the same characteristics. Everybody has some honesty, some aggressiveness, etc. It is only when they try to tell how much of each human trait a particular person possesses that handwriting experts and all character readers fall down hopelessly. Dr. June Downey, psychologist, has found some slight tendencies expressed by one’s handwriting, but not enough to justify hiring or firing or marrying or divorcing a person by this method. 3. Not a particle. He still wants the same kind of wife his grandfather selected—intelligent, good-looking, .tactful, independent, yet just dependent enough to keep his ego inflated. True a man likes his home and fireside, but chiefly to smoke his pipe and relate to an admiring family how he talked up to the boss, or made a good deal, or slew a lion in his pathway, even though his wife secretly may suspect he did it with the jaw-bone of an ass, and, not having any other handy, used his own.

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THE INDIANAPOLIS TIMES

[CONGRESSMAN WILL ‘TOIL’ IN GREAT LUXURY $9,000,000 Marble and Limestone Edifice Is Completed. BY NED BROOKS Times Staff Writer WASHINGTON, Jan. 27.—Your Uncle Sam iwho will be a couple of billion dollars behind in his year's bills) seems to have overlooked ‘ nothing for the convenience of his | legislators in his latest $9,000,000 I edifice of limestone, marble and j super-gadgets, the new house of | representatives office building. Perhaps there is one exception, j The building commission struck out SIO,OOO worth of gymnasium equipment and, at least for the present, | the congressional waistline will have to struggle along as best it can. I Likewise, a boxing teacher, who ! had aspired to train the representa- | tives to physical fitness, will have | to wait for better times for his job. The new building, occupying an | entire block and equaling the old | one in size, will give each representative office space comparable to ! that enjoyed by senators. Each rep- | i esentative, after March, will have a | suite of two rooms—a “work room” for his office help, and a private office. Luxuriously Furnished Work rooms and private offices S are finished luxuriously in American | w alnut. Wail panels conceal rows of I shelves where old Congressional i Records and reports of special commissions may bee stacked. There are built-in metal filing cabinets where letters on economy and other subjects may be carefully stowed away. Buzzer systems connect inner and outer offices and each suite is equipped with a warning buzzer which notifies members of roll calls in time for them to scurry through the subway to the Capitol building in time for the second calling of their names. Wall Safe for “Valuables” A wall safe is provided each occupant for his valuables and Corn Belt visitors wonder whether it might not, on occasions, serve as a substitute for a refrigerator, w’hich the builders did not provide. Some of the inner offices havt private entrances, obviating the need of a member walking through his reception room, where jobhunters or other unwelcome visitors may be waiting to collar him. A private wash room, with running ice water, is provided for each suite, an innovation as compared to present accommodations. The largest and most elaborate room, from which the Capitol dome may be viewed through lonic columns, will be occupied by the ways and means committee. Full length windows will be cloaked with heavy velvet draperies, providing a rich background for the light of crystal and gold chandeliers. Surmounting the room is a massive walnut committee table, elevated several steps from the floor level, beautifully hand-carved, shaped like a half-moon and seating twenty-five members. All of the committee rooms are finished with parquet floors, but the beauty of these will be concealed beneath thick carpeting.

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