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Show Q5 EDITOR: NANCY BLISS THE DAILY HERALD 2 j&8 D By BEN DOBBIN Associated Press Writer A Xerox N.Y. Pete Kranenburg ROCHESTER, Corp. drive to "aggressively and relentlessly" trim costs could mean big cutbacks, analysts said Tuesday, and one newspaper reported 10,000 jobs would be eliminated. The at a company that only recently had been adding jobs comes as Xerox moves to better compete in the exploding digital copier business. The Rochester Democrat and Chronicle, citing unidentified sources, said Xerox will announce 10,000 job cuts almost 11 percent of its work force of 91,400 the week of April 6. As many as 2,000 jobs will go in Rochester, home to 13,900 employees, and Xerox is likely to take a charge as high as $1 billion in the second quarter to pay for the cutbacks over the next two years, the newspaper said. "We regard the story as speculative and have no comment on it," responded Judd Everhart, a spokesman at Xerox headquarters in Stamford, Conn. belt-tighteni- Taxpayers face complex, useful changes this year The Taxpayer Relief Act of 1997 provides the first major tax cut in 16 years. It also carries a wide range of implications that will positively affect individuals, families, investors and businesses. Unfortunately, this is one of the most complex tax packages that Congress has passed in years. Here are the most notable provisions, out of some 800 changes, which affect the business owner and individual taxpayer. taxpayers will be allowed to deduct all of their health care insurance. In 1997, they can deduct 40 percent of their costs. This percentage will gradually increase to 100 percent in 10 years. Business owners will receive a tax credit if they hire certain disadvantaged and welfare workers. Business owners can continue deducting payments for their employee's undergraduate tuition. This is a great benefit for the student because the money is not considered part of M popno5 The company's stock rose on the reports, up 25 cents to $96.62 12 per share in trading late Tuesday afternoon on the New York Stock Exchange. On Monday, the stock reached an intraday high of $99.37 12 before closing at $98.37 12. Wall Street analysts said there were rumblings that Xerox was sharpening its scalpel. "It's been kind of around that they were going to intensify their efforts but a number had not been put on it," said Jack Kelly of Goldman Sachs & Co. "I had a sense it was going to happen sooner rather than later." Xerox's new chief operating officer, G. Richard Thoman, who is widely viewed as the likely successor to chief executive Paul A. Allaire, has stressed the urgency of bringing Xerox's cost structure closer in line with competiCo. tors led by of its new sales robust Buoyed by family of digital copiers, Xerox enjoyed a 20 percent jump in profits last. year. Digital equipment now comprises more than cost-cuttin- Hewlett-Packar- d black-and-whi- MARCH 25, 1998 WEDNESDAY, te g llmmi aft 40 percent of sales. However, the company has struggled to pare costs fast enough as it makes the transition away from copiers that operate with lenses and light bulbs to digital models that can be upgraded to plug in scanners, fax machines and printers when connected to personal computers. old-sty- le "They probably simply realized that in order to be competitive worldwide, they're going to have the get the cost down, at least in the ballpark of where their competitors are," said Janet Barnard, an associate professor of management at Rochester Institute of Technology. "And the longer you delay, the worse it gets." In its annual report last week, Xerox said productivity would be a primary focus in 1998. In the last two years, prompted by technical advances, the company added 4,000 jobs. Most of the gains were in sales and in Xerox Business Services, which runs the printing and copying operations of other companies. That came after Xerox had cut 12,000 jobs from 1993 to 1995. Xerox The company's stock rose 25 cents after it was reported they were trimming their work force. Dtlly closing stock price: " March 24 $100 $96.63 85 Jan. 2 80 $74.88 A- - - J 65 March February January 1997 sales: $18,166 (in millions) Sales $9,892 Finance Service and rentals $7,268 40 income - $1,006 6- AP Source: Hoover's Inc.; AP research Self-employ- the employee's income. d A tax credit, beginning this year, will be given to taxpayers who have dependent children under the age of 17. That credit will jump to $500 in 1999. $400-a-chil- AFTER MUCH talk about reducing the capitals gains rate, taxpayers will receive a welcome relief this year with new, lower tax rates. However, it will take more than four hours and 54 lines of complex computations to determine your capital gains taxes and then the taxpayer still may not have correctly calculated the taxes. With certain exceptions, long-tercapital gains rates have been reduced from 28 percent to 20 percent and for low income taxpayers the rates decreased to 10 percent from 15 percent. The new law also extends the holding period rules so that to qualify for these lower rates you must hold the asset for more than 18 months. For assets sold after July 28, 1997, taxpayers can be subject to three difference capital gains rates. The maximum rate on short term capital gains held less than a year is 39.6 percent. For assets held between 12 and 18 months, the rate is 28 percent. And for assets held more than 18 months, the rate can be 20 percent or 10 percent depending on the filers tax m 'I .'i 't .. bracket. THERE ARE several areas where taxpayers can stumble when calculating their capital gains taxes. First, you'll have to find out when you've sold assets and what set of rules you fall under. Second, youH have to determine if your gains or or , losses are Finally, you'll have to transpose those numbers to part one and part two of the Schedule D and then perform the math. But, if your transposed numbers and calculations on the front side of the Schedule D incorrect, then the next 37 lines of computations on the reverse side will be inaccurate as well and your taxes will be incorrectly calculated. The new Schedule D has three times as many lines as the old one. In addition, it's definitely three times more complicated. Of all the new tax changes, this is one area where youll want to spend time mastering the rules so you don't unknowingly short change yourself or end up paying additional taxes. The new rates will save you money. However, the rules are complicated and contain pitfalls. short-term- mid-ter- long-ter- S1a3ililM!jlSaSiB1, maker Oracle Corp. said they The Associated Press SALT LAKE CITY $m$M&Q "You are our future. would collaborate to improve their products' integration As under We need to feed you capabilities. Monday, Stone BrainShare '98 gets way at the Salt Palace Convention Center this week, Novell is making promises aimed at boosting the confidence and loyalty of more than 5,000 software developers in attendance who use Novell products to build corporate networks. "You are our future," Christopher Stone, Novell senior vice president of strategy and corporate developtold ment, developers Monday. "We need to feed you more stuff." Stone said Novell will make its product programming code more readily available so developers may use it to design new applications. Commerce Department: All states at risk from Asian economic crisis By MARTIN CRUTSINGER AP Economics Writer said the most recent version WASHINGTON of Oracle's data server will be America's West will be hit NetWare. free with available Christopher Stone, of hardest but all regions of the Ramona Howell, Novell senior vice president DeKalb School United States will be affected Atlanta's economic problems in System, joined others in by The company will sponsor a cheering the announcement. Asia, which buys 30 percent contest to encourage developShe said it may save her of U.S. exports, according to a government report. ment on the newest version of organization $25,000. The Clinton administra encour-aged Howell said she is its NetWare network operating tion, hoping to persuade of believes because software. she Developers system lawmakers to supwinning programs may be eli- Stone's comments mark a legit- wavering increased money for the port gible to sell their creations imate change in the way Novell International Monetary "This customers. using Novell's distribution works with its released an assessment Fund, we're time first also the is said. Stone being channel, They Tuesday highlighting the role invited to be true partners." may qualify for Stone said the changes are Asia plays in the economies of funding through a new individual states. $50 million investment fund part of the company's strate"The financial crisis in effecto networks' established. has the company gy improve is likely to impact the Asia At BrainShare la3t year, tiveness, efficiency and residents and busilives and Novell and database software nesses in states across the country," Treasury Secretary, Robert Rubin said. The report, compiled from information supplied by the tance bill can make it easy to Commerce and Agriculture charges. International Telemedia is an Atlanta firm hide calls that didn't actually departments, indicated Asia occur." is a bigger market for U.S. that performs telephone Beadle for the only prosays exports than Europe, with billing and collections tection is a close check of other companies. eight states sending more bills. distance than 50 percent of their The Better Business long monthly "Don't hesitate to question Bureau of Utah became exports to Asian countries. The study, based on trade involved, contacting its counany unusual charges." from 1996, showed that data terpart in Atlanta. A report California shipped theJargSSt" Horns expo slated from the Better Business amount of manufactured Bureau of Georgia reveals This year's OREM goods and agricultural prodthere have been other comspring Home Expo is scheducts to Asia, a total of $51.2 plaints concerning uled for Friday and Saturday billion. That was 51.9 percent International Telemedia at Utah Valley State of the state's total export complaints that allege the s College's David O. Mckay of sales. Nearly customer was billed for Events Center. came from the those exports unauthorized telephone calls. The annual event, sponelectronic equipment and The report says the compasored jointly by the Utah computer industries. ny has not responded to those County Board of Realtors Washington, where airline complaints and has not made and The Daily Herald, runs manufacturer Boeing is locatthe billing adjustments that Friday from noon until 9 ed, ranked No. 2, with $13.9 were promised to customers. billion in exports, followed by p.m. and Saturday from 9 The state of Georgia issued a a.m. until 7 p.m. New York, with $12.2 billion cease and desist order against More than 140 vendors in exports, and Texas, with International Telemedia last will showcase their products $10 billion in exports to Asia. and services. KSL 1160 AM The report said that while December, regarding specific will broadcast their 30 percent of total American business practices. "Businesses can be easily "Morning Show" live from exports are destined for Asia, the share is 40 percent when the entrance. vulnerable to false billing," Free tickets may be only agricultural products says Bill Beadle, president of obtained from a realtor or at are considered. the Better Business Bureau Private economists said the The Daily Herald. Tickets at of Utah. "The sheer volume the door are $5. government figures actually of calls listed on a long dis understate the Asian impact because they only cover trade By Scott Adams in manufactured goods and farm products, leaving out trade in services, such as comiEY, ALL ry STUFF IS ITS EXACTLY LIKE MOOR puter software programs and IN THE TRASH CAN. CUBICLE BUT rAUCH LESS tourism from Asia. CLUTTERED. C! "This data is similar to THAT'S A studies we have done that lj FUNNY show the West Coast is very ! THING TO dependent on trade with CALL YOOR Asia," said Mark Zandi, an PERSONAL economist with Regional STORAGE Financial Associates in West more stuff." Asten ircspset Top 10 states exporting manufactured goods and agricultural products to Asia in 1996: In biilions $13-- ETT :;U2lf22SS BRIEFS G!yrc?p!c pin show Provo's first PROVO Olympic pin show is slated for Saturday, March 28, from 11:30 a.m. to 2:30 p.m. at TGI Friday's, 1600 N. Freedom Blvd. Free Olympic pins will be presented to the first 50 attendees. Jamaican bobsled team captain, Devon Star, will be in attendance. The show is sponsored by Pin Pals International and TGI Friday's. Information: (801) 277-819- Utsh CITY -- A StaKsrtsigsts SALT LAKE Cedar City business owner was looking over her phone bill recently. "I discovered a charge of $19.95 for two collect calls," says Caryn Wilhelm of Southern Performance. Since her business doesn't accept collect calls, she became suspicious. The name of a long distance company, International Telemedia Associates, was listed next to the collect call DILBERT TOUR CUBICLE HAS BEEN REPLACED &V A "PERSONAL HAEITAT." two-third- f -- fit' Orem CPA Peter Kranenburg is the owner of Kranenburg Accounting & Tax Service. UNIT. I Cheolvr, Ta. $i2 era io.o C3 M.6 !3flon W.4 fjw Jersey $4.9 fafeona $4.5 Massachusetts $4.3 Connecticut $4.0 EJnnsylvenia $4.0 'Connecticut and Pennsylvania tied for tenth place Source: U.S. Commerce Deptrtment; U.S. Deptrtmenl AP Agriculture Zandi said merchandise from to Asia exports California, Washington and Oregon account for a far higher percentage of those states' overall economy than other parts of the country and for that reason the West is the most vulnerable to Asian problems. He predicted economic growth in that region could decline by 1 percentage point while impact in the rest of the country will be less severe. Zandi said the Asian crisis will likely lower overall U.S. growth this year by one-ha- lf percentage point. The administration is requesting $18 billion to replenish the resources of the IMF, the agency that has taken the lead in assembling more than $100 billion in for bailouts Thailand, Indonesia and South Korea. But the request is facing opposition in Congress with committees in both the House and Senate seeking to tie strings to use of the money that would require the IMF to implement a series of reforms. Rubin warned again Tuesday that such conditions could prove unworkable and would delay increasing IMF resources, leaving the global economy vulnerable should another crisis hit. |