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Show December 18, 1981 HILLTOP TIMES Page 12 Imt low w By Capt. Dan Haas Office of the Staff Judge Advocate (Editor's Note: The Hill Top Times, in cooperation with the Office of the Staff Judge Advocate, mil run a continuing series of articles explaining recent changes in tax law that impact upon all of us. This is the first installment.) Congress passed the Economic Recovery Tax Act of 1981 on Aug. 4, and President Reagan signed it into law on Aug. 13. The stated purpose of the act was to stimulate the economy by removing disincentives to personal saving and investment and individuals by businesses. Other significant parts of the act involve estate and gift tax liberalization and special purpose tax credits and reductions. Is there anything in the law which benefits you? More than likely there will be certain tax advantages applying to you. The act is vast and complex and its provisions become effective on various dates. This series of articles will attempt to explain how and when the act will affect you. Individual tax rate reductions The new law cuts income taxes by omioir nearly 25 percent over three years. A five percent rate reduction occurred Oct. 1. This will be followed by a 10 percent reduction on July 1, 1982, and a second 10 percent reduction on July 1, 1983. The Economic Recovery Tax Act also provides further tax reductions after 1984 through indexation of tax rates to U 16 18 21 . 24 28 32 avoid the effects of inflation. The reduction for 1981 takes the form . jffe-vjtfi- f of a IVi percent credit against 1981 tax liability calculated under existing rate tables. The Internal Revenue Service has proposed revised tax tables to reflect the effect of this credit and to simplify computations by millions of taxpayers. Irs For tax years beginning after Dec. 31, 1984, Congress directed "indexation" of individual tax brackets, the zero bracket lit amount, and personal exemptions, based on changes in the Consumer Price 1f Index. The intent is to avoid inflation-cause- d "bracket creep." Your 1981 refund may not change significantly because Air Force Accounting and Finance Offices have applied new withholding tables provided by the IRS. In other words, withholding of taxes from payrolls occurring after Oct. 1, 1981, has been based on the new tax rates. The summary below compares 0 0 0 12 14 16 19 11 11 13 22 19 12 14 16 18 22 - 25 0 0 to $3,400 $3,400 to $5,500 $5,500 to $7,600 $7,600 to $11,900 $11,900 to $16,000 $16,000 to $20,200 $20,200 to $24,600 $24,600 to $29,900 IS 17 23 25 ' 26 29 (fuifi wain? 37 43 $29,900 to $35,200 $35,200 to $45,800 $45,800 to $60,000 $60,000 to $85,600 $85,600 to $109,400 $109,400 to $162,400 $162,400 to $215,400. $215,400 and over current and new joint tax rates. New Law i98u im wa in Taxable Income Pet. Pet. Pet. Pet. ; 49 54 59 64 68 70 33 39 44 49 50 50 50 50 30 35 40 44 48 50 50 50 28 33 38 42 45 49 50 50 Next week: Sales of Residences, Interest Exclusions, Child Care Expenses. wm mum fe afr ac mti ffl CP Whir" EHH090 cu. ft. Storage Capacity 9 . HOME, - t,Jrrirtw out luuricA O rt u-oieci M AG NET" Lid . an . inienur nnisn iviilliUin- Lock - Adjustable ::-i Key-eje- ct ! it Tmk. Req. $429.95 SAVE $110.00 v. Itllii. H tttt.L. 'SSSW trill mm mm mm M-- V V 1! i5i M FRUIT BASKETS That special gift for those special poopb Ovor 50 stylos and prices to choose from We are now taking orders Fillers No . niCR0l7AV 0 is REG.36995 FTP Vari-Coo- k and "P from ; timers 35-mi- n. , Large 1.2 cu. ft. interior Limit to stock , ti. W& DHIEVI C CTTI 6" reg. $4.98 1 0" reg. $14.98 MUMS AC 6" 5Q ft IN FULL BLOOM lor vour apples oranges pears tangerines grapefruits Km0S Red and ' ' LHE 5700 vmssm Olth Ma Pistachio Nuts 05 5 lb. bag 234", fresh and crispy 0pV9 J infill Permanent Press in - ff Avocado only hpij Reg. $469.90 4 SAVE $115.00 Automatic Wash Cycles ' uarge capacity moaei...reaiiy nanaies ine loads Energy-Savin- g Water Temp Control Water-Savin- g Load-Siz- e Selector Double- - i . v: BIG Tmk a box . . Heavy Vii LA5500XK H.P. motor a"wis t j?.,JL ar A.r. i 1 1) flilili n Plus delivery Imperial Grade ( Cool-Dow- Control for Automfltir Rhi Mixed Nuts 0' Care v ! Special Cool-- helPS prevent wrinkles nnn Parol tit GOLDEN DELICIOUS APPLES Extra Fancy . Reg . $359.95 SAVE $130.00! Full bloom mixed nuts ' H9 Rieger Begonias See us - r w r. v -- fr n. innit |