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Show That's Life )6CQiid funnsr up m F0URTH ANNUAL DUMBER THAN DIRT AWARD draws near, the second runner up has been chosen. You may recall that last week we awarded the Third Runner Up prize to those people who shop out of town and send their tax dollars to help someone else Although, I must admit, Third Runner up was almost pre-empted due to the unbelievable stupid actions ac-tions of the Springville City administration. ad-ministration. In case you haven't heard, Springville elected to end their support for the International Folkfest that has been held in Springville for the last two years It's about the same sort of thing as Calgary, Canada cancelling the Winter Olympics! The city fathers of the Art City did not make their move in time to become a serious contender for the Dumber Than Dirt Award, however, so I guess we will just have to move on to those who have already been chosen to participate. Better luck next year, Springville. The Second Runner Up Award has been presented to the Gasoline Industry, In-dustry, although it may have been more properly awarded to the State of Utah or to certain big chain store operators. In researching the subject of differing gas prices in various parts of the region, some very interesting facts have come to light. We often complain that gasoline prices are unfair, that price-fixing seems obvious, and that someone, somewhere, is getting rich on the price of gasoline. Those may all be true statements, but I am here to tell you that it is not the gasoline retailer who is making money on fuel for your car, even if he is 12 cents a gallon over the guy in Nevada or Wyoming. In Utah we have this cute little law that says a retailer may not charge less than 6 percent over his cost on any category of item that is resold to the public. This law was apparently designed to help small businesses compete; sometimes it helps, sometimes it doesn't. There have even been a few enforcements of this law in recent years. There is no law that we know of that restricts the merchant from charging more than 6 percent and that is good because businessmen need to make a living too. Here, for those of you who think your neighborhood convenience store makes too much profit, are some startling facts. Your local businessman must pay the same fees for connection to water, power, sewer and etc. but he uses a lot more of each of those services, so his cost is higher. He must pay the city, state and county those license fees which are required each year, and he must be competitive with the company down the street that is trying to run him out of business. So, what has all this to do with the cost of gasoline? Would you believe that the average small neighborhood convenience store averages (over a years time) about two cents a gallon on what he sells? That is before all his cost of business comes out. The people who collect the taxes actually receive about 10 times the income from gasoline as the guy who buys it from the distributor, stores it in expensive underground tanks, and pumps it with elaborate pumps which have to be tested and certified every now and again. That same little convenience store that makes two cents a gallon (average) on gas, makes only about six cents a gallon on milk, which is better than selling gas, but still not enough. The main problem is, each person buys one gallon of milk and 10 gallons of gas. It should be obvious ob-vious by now that the convenience store business is not all it's cracked up to be. Surely, you are probably thinking, there is more profit in that business than the pennies we are talking about here? Sure, some items are money makers. Can you guess what they are? Beer and cigarettes. The two most con During February get 25 off any or all of these services: o Exam o Cleaning X-rays Fluoride Treatment ' ''fJ' , 'km troversial items in this state are designed to be the big money items. Beer sales amounts to about 18 percent in net profits, cigarettes 20-25 20-25 percent. Is it any wonder then, that every market, every gas station and every retail outlet these days sells beer and cigarettes? The plain truth of the matter is, they could not afford to stay in business if they didn't handle those items. It is interesting to note that beer, for example, is also a price regulated item. Some big convenience con-venience chains who not only refine their own gasoline and occasionally use other fuel mixes such as Gasohol to beat the cost structure, cannot buy beer any cheaper than anyone else -no matter how much of it they purchase; one case or a thousand cases, the wholesale cost is the same. That way, every store gets in on the high profit item. A recent proposed state law, which I favored at the time, would have prohibited any store that sold gasoline from also selling alcoholic beverages including beer. That law, which sounds like such a good idea, would have put 90 percent of the independent convenience stores right out of business. It is a sad commentary that the two major items accused of being the main cause of disease, accidental ac-cidental death, and the breaking up of families, are the very same things that our government allows the greater profit to be made on. Meanwhile, our commercial life blood, gasoline, is so closely regulated that the area price is dictated by one chain operation because they have figured out that the only way to beat the law-makers is to manufacture their own gas. I wonder when they will open their own breweries as well? Gasoline which doubled in price over night a few years back because of a so-called "shortage," has since tripled and quadrupled. Are the Arabs getting all the profit? In this nation of schooled capitalists it hardly seems likely that all the big money is getting away. What most irks the average Joe, however, is the fact that one area gets such a good deal and another gets the shaft. Who are the big executives who decide? Interestingly enough, it is the retailer himself who sets the price. If you want to know why the price is different in one county than it is in another, call the big chain operators and ask them why. The rest of the gasoline dealers around the area are just trying to compete and it ain't easy! Isn't that always the way, though? The rich get richer and the poor just get more kids. We complain, com-plain, we protest, but the little guy keeps on struggling while the big guy takes home the gold. The whole situation is just dumb; Dumber Than Dirt! Utah FFA Week Feb. 20-27 Governor Norman Bangerter has declared the week of February 20 to 27, 1988, as Utah FFA Week throughout the state. In his declaration the governor lauds the Future Farmers of America for the training, their motto "Learning to do, doing to learn, earning to live and living to serve" and for the service the organization lends to the youth of the state in teaching leadership, cooperation, citizenship and inspiring in-spiring patriotism. The week will be celebrated at Springville High School by the local FFA chapter. Having trouble opening a stuck lid? Tap gently around the side edges and then the top edges. Hold the lid with a towel and, pressing the lide with a towel and, pressing it down, turn it with a firm hand. February is National Children's Dental Health Month Sponsored by the American Denial Association Take care of your health ...head first DALE C. HADLEY DDS 230 EAST 400 SOUTH $ 489-9456 Changes to qh q turn form Utahns will notice several significant signifi-cant changes on their state income tax forms this year. Among the most notable changes are the following: Federal Income Tax Return: Utah residents are no longer required to attach a copy of the federal return to the state return. However, nonresidents and part-year residents filing Form TC-40NR must still attach a complete copy of the federal return to their state return. Although the state income tax envelope indicates the need to attach the federal form and related schedules, this applies only to nonresidents and part-year residents of Utah. Person Exemption: Your personal exemption has nearly doubled for the 1987 tax year. Utah now allows 75 percent of the personal exemption allowed on the federal return. The personal exemption for Utah for 1987 is $1,425 (75 percent of $1,900). For taxes filed for 1988, this will go to $1,463. In 1986 it was $750. Deduction of Federal Income Taxes: The amount of taxes paid to the federal government is no longer deductible on your state income tax return. Utah is among the growing majority of states that does not allow this deduction. (Only eight states allow a full deduction for federal income taxes.) Standard Deduction: Utah now allows the federal standard deduction deduc-tion as allowed on the federal return, including adjustments for taxpayers age 65 and over, or blind. The standard stan-dard deductions for 1987 are as Will "Rainy Day" Fund survive 1988 spending? Will Utah's "rainy day" fund survive the many spending demands of the 1988 legislative session? This question was asked by Utah Foundation, the private tax research organization. In 1986, the Utah Legislature established a budget reserved (rainy day) account to provide a cushion for emergencies caused by falling revenues or unforeseen budget needs. Under the terms of this law, $20,049,000 of the June 30, 1987 general fund surplus was placed into this special account. The Governor's budget submitted to the 1988 Utah Legislature would appropriate most, if not all, of the funds in the budget reserve account for various capital projects. Among the specific projects recommended were (Da new medical examiners facility and (2) half of the first phase of a new regional prison. These two projects would require an appropriation ap-propriation of $19,563,000 from the $20,049,000 balance in the budget reserve account. Because of these problems, a resolution is being considered by the 1988 Utah Legislature which would make the "rainy day" fund part of the state's constitution. The proposal would earmark 2 percent of the year's revenue to a budget reserve account until the account was equal to 5 percent of estimated revenues. Moneys in this account could be spent only upon approval of three-fourths of the members elected to each house. When the 1986 Legislature established the budget reserve account, Utah became the 30th state to create such a "rainy day" fund. These funds were established in many of the states to lessen the effect of economic downturns on revenues and on state operations. According to'vthe Foundation's research, the balances in most of these funds were too small to deal with the revenue shortfalls faced by most of these states in the 1980s. The Foundation report points out How Utah taxes compare Utah Taxes rank 8th highest in the nation when compared to personal income, according to the latest Department of Commerce data, reports the Utah Taxpayers Association. But the Association cautioned that the 1986 figures do not include the massive 1987 tax increases which are expected to move the Beehive State's ranking up another two or three places among the fifty states. Utah's ranking increased one notch in 1986, up from 9th place in 1985. Utah ranked 17th in 1983. Alaska had the nation's highest state and local taxes per household and Arkansas the lowest last year. The information is contained in the 1988 edition of UTA's "How Utah Compares" Booklet. For the first time, the booklet includes comparisons on state and local taxes per household in addition to the per capita and per $1,000 of personal income figures. "Utah state and local taxes took 11.76 percent of all personal income in the state in 1986. This is 7th highest in the nation, up from 8th place in 1985 and 11th place the year before. Utah's 1986 personal income per household was $35,580, or 33rd place while our personal income per capita was $10,984, or in 49th place," claimed Jack Olson, Executive V.P. of the statewide organization. "Utah state sales taxes ranked 9th highest in the nation when compared to both personal income and number of households. Sales taxes in Hawaii per household are now the highest in the U.S. while Virginia is the lowest. Utah sales taxes came in 15th place watch for follows: single return, $2,540; joint returns, $3,760; heads of households, $2,540; and married separate returns, $1,880. The federal itemized deductions are also allowed, but must be adjusted to add back any state income tax included on the federal return. Despite an era of double digit inflation, in-flation, the state standard deduction hovered between $1,300 and $2,000 from 1973 until 1987. Age 65 and Over andor Blind Taxpayers: Tax-payers: Utah has adopted the federal regulations for those 65 years old or older andor the blind. The 1988 standard deduction will be available to the elderly andor blind in 1987. An extra standard dedic-tion dedic-tion of $600 will be allowed for each married elderly or blind individual ($1,200 if both elderly and blind) and $750 for the single taxpayer ($1,500 if both elderly and blind). Retirement Income Deduction: New limitations have been set for the retirement income deduction. Taxpayers age 65 and over, with qualifying retirement income are limited to a deduction of $3,600 each; taxpayers under 65 with qualifying retirement income are limited to a deduction of $2,500 each. Retirees receiving benefits from the Utah State Retirement Office may still deduct these benefits in full, to the extent they are included in federal adjusted gross income. Railroad retirement income, both Tier I and Tier II, is exempt from Utah state income tax. that the theory of "rainy day" funds is to set aside contingency funds during prosperous years to be extended ex-tended in the poor years. Usually, the main purpose of a "rainy day" fund is not to completely solve a serious revenue shortage problem, but merely to relieve some of the pressures and cushion the transition until a satisfactory solution can be found. Although a majority of the states have established "rainy day" funds in recent years, there are some who questions the desirability of such actions. Among the major arguments against such funds are the following: 1. These reserves represent an overtaxation of citizens and should be returned to the taxpayer. 2. Large reserves and surpluses held by government provide a powerful incentive to spend. 3. Large reserves remove the incentive to adopt needed tax reforms and improvements in operating procedures. 4. Such funds will not eliminate deficit spending and the problems associated therewith. 5. Establishment of a reserve fund will divert available resources away from other needs, such as capital outlay projects. Proponents of "rainy day" funds, on the other hand, list the following arguments for such funds: 1. Budget reserves provide some stability to state finances. 2. They reduce some of the operating pressure on state agencies and institutions. 3. They protect the taxpayer against special tax surcharges and sudden tax hikes. 4. They help cushion the transition from prosperous economic times to recessions and depressions. 5. They help protect a state's credit and bond rating. 1 6. Money placed in such funds can be used to cover operating deficits and will not be spent on unwanted or unneeded programs. when compared to population," said Olson. "Utah's individual income taxes ranked 13th place per $1,000 of personal income, 14th per household, and 19th per capita." "New York in 1986 had the nation's highest individual income tax per household, Delaware was 2nd and Alaska brought up the rear," said Olson. Utah property taxes ranked 24th place compared to personal income, 26th place per household, and 33rd per capita," claimed the tax watchdog wat-chdog association spokesman. IRS forms Taxpayers, who need federal tax forms and publications, now have a variety of ways to get them, according ac-cording to the Internal Revenue Service. They can: Visit the local bank or post office for Forms 1040, 1040A, and 1040EZ, their instructions, and Schedules A and B. -Write to the IRS Forms Distribution Center, P.O. Box 12626, Fresno, CA 93778. The easiest way to do this is to use the handy order blank on the next-to-the last page of the tax forms package. The items ordered should be received within two weeks. Taxpayers with questions about the tax law, such as allowable deductions and credits, should check their tax forms package or call the toll-free IRS tax assistance number (1-800-424-1040). February 17, 1988 - The p mmmmm m- minim i.. m&m I t The Thank-A-Teacher campaign that was launched last month saw three area teachers honored for the month of January. Shown above is Mrs. Voneal Heber who was named from the Springville-Mapleton PTA Council Coun-cil area. J. Collin Allan, president of the Nebo School Board, is shown presenting Mrs. Heber with a certificate of honor. Heber teachers 9th grade English at the Springville Junior High School. PTA Thank-A-Teacher awards presented Three teachers were recently selected and presented to the Nebo District School Board as "Teachers of the Month" for the Thank-A-Teacher campaign being directed by the local PTA councils. Mrs. Voneal Heber was named from the Springville-Mapleton PTA Council area for the honor. She is a 9th grade English teacher for Springville Junior High. Also named at the meeting were Mrs. Nancy Melander, a 2nd grade teacher at Park Elementary in Spanish Fork, and Mrs. Winifred R. White of the Goshen School who teaches 7th grade. Mrs. Dohnelle Overly, President of the Springville-Mapleton PTA Council presented Mrs. Heber to the school board by reading excerpts from letters of tribute sent nominating and thanking the outstanding out-standing teacher. Mrs. Heber has taught for 20 years, 18 of those at the jr. high. She graduated from Brigham Young University in Drama, Speech and English. She has also taught chorus and led a singing group, the Jr. Hi's. She has been involved with plays and written original assemblies. Comments made about Mrs. Heber included that students had learned more in her class than ever before; that she was a hard teacher and demanded a .; that she makes English interesting and worth while; that she gives of her own time in planning and practicing shows and assemblies; and that they feel fortunate to have her as a teacher. The three teachers were presented certificates of achievement by Mr. Collin Allan, President of the Nebo ANNIVER! ONE DAY ONLY! FEBRUARY SPRINGVILLE yC regular small )f HAMBURGERSSOFT DRINKSu I 39c Jl 39c J f Small Small If FRIES M SUNDAES jl 39c A39ci r jiiSiiu i 615 North Main Street PROVO 1360 South State Street! 1516 North 200 West 698 Eait Third South Springville Herald - Page Three School Board. If you would like to "thank-a-teacher" for the contribution he or she has made to your family's education, please submit letters of nomination for next month's award to Supt. J. Wayne Nelson of the Nebo School District, 350 South Main, Spanish Fork, Utah 84660. All nominees must presently be teaching in the district. School lunch February 18, 1988 Roast turkey with whipped potatoes and gravy, buttered par-slied par-slied carrots, celery stick, buttered traisin bread, and one-half pint milk. February 19, 1988 Tacos, French fries with catsup, buttered whole kernel corn, glazed cinnamon twist, red jello with whipped topping, and one-half pint milk. February 22, 1988 Seaburger, French fries with catsup, cole slaw with orange twist, peanut butter finger, chilled peaches, and one-half pint milk. February 23, 1988 Pizza Wheel, green beans, potato wedge, chocolate cherry cake, and one-half pint milk. The male ostrich is a conscientious con-scientious father who whiles away his nights sitting on his female's eggs. The hearing of an elephant is about as acute as that of a cat. Both animals can hear sounds as soft as the footsteps of a mouse. 20, 1988 REM n I |