The Mail-Journal, Volume 28, Number 21, Milford, Kosciusko County, 5 July 1989 — Page 5

Small Business Angle — ) Payroll tax increases tempting to politicians

By JOHN SLOAN An attempt to increase payroll taxes to fund social programs failed in mid June when the House Ways and Means Committee nixed the idea by a narrow 17 to 16 vote. Higher payroll taxes are anathema to small-business owners. These taxes are levied on all businesses which employ people, regardless of the profitability of the business. They siphon money from business expansion and give owners of start-up businesses second thoughts about adding employees. Nevertheless, payroll taxes remain politically attractive vehicles for raising revenue because, unlike an income tax increase, they are transparent to

Need help?

As a public service, ‘the PAPER’ is running the following information for those who need help and don't know who or where to call. Insurance companies and agents: Department of Insurance, 1-800-622-4461 Doctor: Indiana State Medical Association, 317-925-7545 Lawyer: Indiana State Bar Association, 317-232-1807 Landlord who is not keeping his building up: Buildings and Inspections, 294-5471 Business and to receive reliability reports: Better Business Bureau. 293-5731 Dentist: Indiana Dental Association: 317-634-2610 Businesses and licensed professionals (except lawyers): Consumer Protection Service, Attorney General’s Office. 1-800-382-5516 Utility company: Public Service Commission. Consumer Affairs Div.,317-232-2712 Discrimination: Human Services, 294-5471

w « a KEY CLUB MEMBERS ATTEND CONVENTION — Two members of the Key Club of Wawasee have been chosen to represent their club at the 46th Annual Convention of Key Club International, along with some 3,000 other Key Club members. The convention will be held in Orlando, Fla., July 1-5. The members chosen this year are Jennifer Prado, left, Key Club of Wawasee president, and Amanda Shoemaker, right, secretary, both are from North Webster. These local representative were selected for their service to their home, school, and community, and will be electing international officers and voting on issues which will determine the direction the organization will take in the year ahead. Highlights of the convention will include internationally renowned speakers and talent, as well educational forums, individual and club competitions, and sessions designed to strengthen the local club and individual members. Key Club International is the world’s largest high school service organization, maintaining ideals and objectives similar to its sponsor. Kiwanis International. The local sponsor is Wawasee Kiwanis Club. There are more than 125,000 Key Club members in approximately 3,600 high schools in 13 countries.

ARE YOU PAYING TOO MUCH FOR AUTO INSURANCE??? If You Have * No Accidents Or Tickets For Last 3 Years * No Major Convictions In Last 5 Years * 2 Or More Cars * Are Over 25 Years Os Age WE MA Y BE ABLE MONEY For ANo Obligation ■ Quote Call: Mjyj ■ Merle R. Holden 773-4288 K / St. Rd. 19 South S NAPPANEE, IN 46550 ■ V Kosciusko County / * Life * Health * Auto * Home . —— _. —— —.— , — Representing \ American National insurance Company X American National Property & Casualty Company AMERICAN Members Os The American National Family Os Companies N ATION A L

most taxpayers. Perhaps that is why Rep. Tom Downey, D-N.Y., tried to fund a $5.9 billion package of child welfare programs, aid to the elderly and other social programs by increasing the wage base for the federal unemployment tax from $7,000 to SIO,OOO, effectively raising the unemployment insurance tax by 40 percent. Downey claims the increase is needed because "the threat of insolvency (of the Unemployment Compensation system) still lingers on the horizon. ’’ For the record, ÜBA, Inc.; legislative specialists in workers’ and unemployment compensation,'report: “One of (the federal trust fund accounts) is overflowing its ceiling; another is very

Laws, communication and problem solving, special education process, etc. for the handicapped: The Task Force on Education for the Handicapped, Inc.. 1-800-332-4433 Mediation service for neighborhood disputes, custody disputes, landlord/tenant disputes, etc. No legal advice: Center for Community Justice. Ruth Andrews, 295-6149 Free budget counseling and debt management: Consumer Credit Counseling Service. 295-6596 Congressman J. Hiler, 407 Cannon House Office Building. Washington. DC. 20515. 202-225-3915, 224 W. Jefferson Blvd., Suite 101. South Bend. 1-800-854-4537 Senator R. Lugar, 306 Hart Senate Office Building, Washington. DC. 20510, 202-224-4814 Senator Dan Coats, 411 Senate Russell, Washington. D.C., 20515. (202) 224-5623

near its ceiling and the third and final account has $2 billion dollars in reserve and is growing.” So much for insolvency. One could debate the need for almost $6 billion in new social welfare programs, but that is not the issue here. Payroll taxes are being used by various policymakers in various ways to mask shortfalls in public obligations. The Downey scheme is but the latest. Rep. Ron Wyden, D-Ore., recently urged Downey’s subcommittee to repeal the 0.2 percent federal unemployment surtax because, by the end of 1990, “surtax revenues will reach $10.83 billion.”

Tougher auto excise tax, anti-drug, drunk driving laws go into effect

I By STACEY LESCH Staff Writer State Senator Robert L. Meeks said last week that, persons who avoid Indiana’s auto excise tax and those involved in illegal drugs will face tougher penalties as the result of bills enacted by the Indiana General Assembly which became law on July 1. Meeks said that approximately 250,000 Indiana cars are illegally registered resulting in a statewide lose of $23 million each year. He says most violators are those who reside in other states during the winter months. “There is a lot of gray area in the (Indiana) residency requirements,” he says. “Those requirements are clarified in the new law.” Although Indiana residents illegally register their cars out-of-state to avoid the auto excise tax, a county tax which funds local roads, schools and government, Kim DeVane, public affairs director at the state office of the Indiana Department of Motor Vehicles, says the excise tax is in lieu of a personal property tax which is paid each time a vehicle is registered. “The difference between Indiana and surrounding states is that in Indiana we pay the tax at the time the car is registered,” says Kim. In other states people pay the same fee each year to register their vehicles — averaging between S2O and SSO — but, Kim adds, “Somewhere along the line, those people have to make up (personal property) taxes and will get hit.” Prior to July 1, the penalty for Indiana residents illegally registering their vehicles out-of-state could be no more than a SSOO fine. The new law will allow a maximum fine of SI,OOO and a jail sentence of up to 180 days. Also under the new measure, new residents will have 60 days to register their vehicles with the state or face the same penalty. To ease the escalating cost of registering a car in Indiana, the law also requires the Bureau of Motor Vehicles to deflate the price of new vehicles, beginning with the 1990 model year, to offset higher prices caused by inflation. Kim says the excise taxes "will be adjusted accordingly to grow at the same rate other taxes are growing.” Before the bill became law, excise taxes were rising at the same rate of inflation. "Legislators felt it was important to put more teeth into the law regarding illegal out-of-state auto registrations, but we believed it

MILLER S MERRY MANOR IS OFFERING A FREE I BASIC NURSE AIDE ■ TRAINING CLASS I Have you ever considered a career in the health care field J The need for such a person is growing rapidly and we are looking to add several qualified people to our staff. This is a free 40 hour class which is required by the Indiana State ' B Board of Health for employment as a Nurse Aide Classes Starting H JULY 17, 1989 ■ To ' B JULY 21, 1989 I Monday Thru Friday 8:00 A.M.-4:30 P.M. B IF INTERESTED CONTACT: B \ I \ Merry Manor, Inc. H . I / It’s the way we care I (219)457-4401 H SYRACUSE ■ \ Pickwick Dr .& Old Rd 13 |ji Providers Os 24 Hour Nursing Care In Your Hometown

A similar situation exists with the Social Security tax. The National Federation of Independent Business is urging Congress to repeal a FICA tax-rate increase scheduled for 1990. By most estimates, the Social Security trust funds will hold $1 trillion in surpluses within 10 years. Payroll taxes already account for more than 30 percent of all federal revenues. In 1952, only 10 percent of federal revenues came from payroll taxes. Says NFIB, "Eliminating the 1990 FICA rate increase would benefit the economy by allowing firms to retain more capital with which to expand. Stabilizing payroll-tax rates would en-

was equally important to halt the spiraling cost of buying license plates,” Meeks says. “This new law should accomplish both goals.” Drug Laws Stronger Convicted drug dealers nowface losing their vehicles and other property used to commit, in attempting to commit or conspiring to commit drug-related offenses. \ According to Meeks, the new law will permit law enforcement officials to seize and sell drug dealers’ vehicles, real property and tools of the drug trade, such as weapons and car phones, which are linked to drug crimes. Funds derived from the sale of the property will be used to help pay the costs of the criminal investigation and prosecution of the offender. The law also creates a new court-imposed fee of between SIOO and SI,OOO which will be assessed against persons convicted of certain drug offenses. Money generated from the fee

I ■ i* >■ • ERmoI /■ DONATES SSOO TO PARK — The Tranter family of Syracuse gave a SSOO donation to go towards the new gazebo/bandstand that is presently under construction at Lakeside Park. Pictured is Jim Tranter, left, presenting the donation to Jerry Claybaugh, park board member. (Photoby Kip Schumm)

courage business owners to hire more people, a more productive method of raising the level of payroll taxes.” />. The odds on killing the 1990 rate increase are slim, because a trillion dollar Social Security Trust Fund masks the true size of the federardeficit. Shenanigahs with payroll taxes will continue until the voters become more savvy about the impact of those taxes. Smallbusiness owners know and must speak out about the economic havoc created by taxing jobs and b usiness expansion. John Sloan is President of the National Federation of Independent Business, representing more than half a million small-business men and women.

will be dedicated for state and local drug interdiction, prosecution and prevention programs. Another act, in relation to drug crimes, will allow prosecutors to seek the death sentence in the case of a person convicted of an intentional murder that occurred during a drug deal involving cocaine or narcotics. The final measure set into law on July .1 regards the suspension time of a drunk driver. “Until now. it could take as long as 28 days to complete the process of notifying a drunk driver that his driver s license was suspended. This law will hasten the process so that the license can be suspended within five days after an initial court hearing on the case," Meeks says ' Meeks concludes that each of the new: measures will help ensure the safety of law-abiding Hoosiers, while increasing the likelihood that those who choose to knowingly break the law will be punished properly .

"CRUZIN around CUSE"

N '' I In WliL ’Hwi rll !■ II b.. iHBi II Ki ww k

(Continued from page 4) THE NEW jaws equipment, purchased by the Syracuse Fire Department with funds raised through donations and several fund raisers, is now in service. The equipment, which cost $13,000, included the jaws unit, motor, 100 feet of hose, and hose wheel, and cutters. Fire Chief Jerry Byrd is shown holding the

Polaris Vac-Sweep I Save S2OO Regular $895 »ir independence from ng chores this year with ic-Sweep. It's the only ic pool cleaner that is the bottom and sweeps tes. In three hours or less, s is depoisted into its own h bag -- not your filtration stem. Start enjoying your pool more with Polaris Vac-Sweep, now only $695.00* at Bontrager Pools! Polaris T 7 V A C SWEEP SUN SEARCHER ll® Floats 6 > > Only $45 M for Ist float - 2nd one at 1/2 price Open 8 am - 6 pm IMbEiSTt) Monday - Saturday Thursday open (Elkhart hours: 7 am - 6 pm) Step into the Bontrager Sensation! 23695 U.S. 33 E. 702 S. Ironwood 2606 E. Corridor Dr. Elkhart, IN Mishawaka, IN (Next to TSC) (219) 875-6505 (219) 259-4203 Warsaw, IN (219) 674-9514 (219) 269-4203 ‘Price does not include installation. Sale price throughout July

Wed., July 5,1989 — THE MAIL-JOURNAL

new jaws which weighs 44 pounds and can be easily operated by one man. The old jaws weighed 70-80 pounds and took two men to operate. JERRY AND Donna Johnson, r 4, Syracuse, continued the tradition of a Flotilla Race Day lunch in their home. The lunch was held at 12:30 p.m., Saturday, July 1. This is the 12th year the Johnson's have sponsored this event.

5