Show NationalWorld Standard Examiner Tuesday April 24 2001 5A Law could limit benefit of tax cuts for millions Trie tax would apply Aesooamd Press WASHINGTON - By 2011 about 21 million taxpayers will feel the bite of a law passed three decades ago to prevent supremely wealthy people from escaping taxation President Bush's proposed tax cuts would push the number even higher to 36 million Democrats and Republicans agree this poses a looming problem for middle-incom- e taxpayers But because the alternative minimum tax will affect only an estimated 15 million taxpayers this year and the heaviest impact won't come until later the White House and Congress are putting off a permanent fix that could cost at least $300 billion over 10 years The problem "is something that eventually has to be fixed and we will work with Congress to deal with it in due course" said Mark Weinber- ger assistant treasury secretary for tax policy The alternative minimum tax is a parallel income tax system enacted in 1969 to limit taxpayers’ ability to escape taxation through legal deductions credits and loopholes Congress was reacting to highly publicized evidence that 155 e people paid no income taxes in 1966 by claiming a series of deductions and credits high-incom- Alternative taxes The tax rate begins at 26 percent and rises to 28 percent for incomes above $175000 but unlike the regular tax fewer deductions and credits are allowed That means a taxpayer often winds up with a bigger tax bill if the alternative tax applies sanative tax law designed to taxpayers trom escaping taxation through loopholes has not been recalculated tor inflation As a result middle-incom- e taxpayers are paying this tax Here is look at who is affected A 1969 prevent e Married couplet: 26 percent on income above a $45 000 exemption and 28 percent lor income above $ 75000 Single or head ot houaehold: 26 percent on income above a $33750 exemption and 28 percent lor income above $1 75 000 40 million taxpayers 35 Current law President Buaht tax cut plan 30 25 20 15 W 09 11 SOURCE JOml Commtnm on Taxation AS 01 03 OS m Because Congress never linked the alternative tax to Single people with incomes below $33750 a year and mur-riecouples filing jointly with incomes below $45000 are generally exempt from the alternative tax But above those amounts depending on the size and type of credits and deductions that a taxpayer claims against his regular taxes it's possible that the alternative d annual inflation adjustments if nothing is done more and more people will find themselves calculating and owing the tax as their incomes rise And if the regular tax is cut as Bush wants and the alternative tax stays the same the tax breaks promised for millions of people would be reduced because they would be shifted into the alternative tax system "The problem is if you set about doing tax reductions for individuals by cutting rates the tax cut is going to be an illusion for some people" said Don Weigandt vice president at JP Morgan Private Bank in I os Angeles The Joint Committee on s Taxation which provides with official tax bill estimates projected that about 21 million taxpayers would pay alternative tax by 2011 under current law But under the House-passeversion of Bush’s cut in income tax rates that number would balltxm to 36 million 3 Days Only! Prices effective: April 24 thru April 26 2001 Con-gi'es- SStri Ins - d -- Americans rescued from South Pole The Associated Press lr fV Wednesday April 25 2001 WELLINGTON New Zealand - A New Zealand air force plane took off safely from an ice runway at a US Antarctic research station Tuesday carrying out a risky mission to rescue four ailing Americans Fresh Cut fW Bouquets A C130 Hercules left Pega- sus airfield at McMurdo Station just an hour after landing to retrieve four sick staffers and seven other Americans a spokeswoman for Antarctica New Zealand said Florist Quullty Case Best Yet Sugar £ Save $300 iifenfe (mm Granulated 25 pound bag -- Canning Lids Regular 12 count il Wide Mouth Vi ' Kerr 12 count -- count ' pint Angel Food Cake iyrJLk) I F 12 ouiuv i l The McMurdo airlift came hours after blowing snow high winds and low visibility prevented another emergency airlift from taking off for the South Pole where a sick American doctor is waiting for a flight out for urgent treatment 2 f Jars ’ count 12 Kerr X Canning Decorator Jam or Jelly Jars Kerr US based v Strawberry Pies 't nn I Fresh yy :p delicious fc frfgnS Whipped Topping 2250 minutes wmPPhj 30°° r10 o 0 Best Yet 12 ounce wmppED toppiQj Includes: Caller ID Stowbeny FOR 15 ounce MCP Pectin O Free motorola 22601 with purchase ol accessories JL 2 ounce Marie Callender's 20 z Danish Dessert 4 ounce V i a V t jMh Wl WIRELESS ETC 44H Wiwt AtM8 (801 ) 775-03- I k 04 lnykt 30 vniw Mim ttfMiWiX (BOI ) 205-5050 Soma rmitrlctlon apply 0 C a $25 activation faa naw raqulrad Saa your rapraxantallva for full dalaili A ona-yaa- r 1 W vcrirorimcicss uthortwd gn( aarvlca agraamant and $20 programming faa ’ (rj If yi I q) $J99 Glaze Juice 0 nationwide long distanco f" ( ro ReaLemon auolcoMall Additional Wireless Locations f 99 $ Limit 4 Raytheon Polar Services told The Associated Press "The primary purpose of the mission is emergency medical evacuation of one employee” He declined to comment on the patients' conditions but New Zealand air force sources said one man hud a serious heart condition that required urgent hospital treatment ONLY Ke $3 VwT (203 "Right now the count is eleven people coming out for various reasons" John Sherve the New Zealand manager for their employer - t spv Full ! |