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Show Page 8—THE HERALD. Provo ‘ah, Monday. July 6, 1981 orld Roundup The latest in national and international news from United Press International Congress Set to Broaden IRA Eligibility in Tax Cut > UN WASHINGTON (UPI) — little publicized provision in the tax cut bills being prepared in the House and Senate would allow 40 million Americans toim. prove their retirement plans. The bills would broaden the scopeof In- dividual Retirement Accounts or IRAs the tax-deferred retirement pian Congress has limited to people who do not par. ticipate in employer-sponsored pension plans. In 1978, 2.4 million federal income tax returns claimed IRA tax deductions. More than 40 million Americans areineligible for IRAs under present law because they belong to pension plans. Both the Senate Finance Committee and the House Ways and Means Committee have written into their respective tax bills provisions to extend IRAs to this group. They also would raise the tax deduction limits for those now using IRAs. The changes appear almostcertain to be part of the eventual tax cut sent to President Reagan An IRA canbe obtained through a bank savings and loan insurance company stock brokeragefirm or other financial institution. It allows a person to put money into the account and get a tax deduction for doing so. The moneystays in the account — grow- August Tax Cut WASHINGTON (UPI) — President Reagan is putting the pressure on Congress to produce an acceptable tax cut bill before the month-long congres- sional recess scheduled to begin Aug. 3 With Congress due to return Wednesday from its extended Fourth of July holiday both houseswill haveless than four weeks to pass separate bills and reconcile their differences before sending a tax package to the White House. The Senate with its Republican majority, should havelittle trouble. The Senate Finance Committee has completed action on the administra- UPI Telephotos tion's tax proposal. including the presi- Damaged section falls taking part which was to remainintact withit. dent's 25 percent across-the-board tax cut for individuals spread over 33 months. Chairman Bob Dole R-Kan., expects to bring the bill to the Senate floor around July 15 for reasonably prompt approval. The rub, however, will comein the House. House Democrats. working on their own tax cut alternative planned to get downto business this weekin the Ways and Means Committee, wherethey hold a 23-12 edge. Blast Makes It Worse KEITHSBURG, Ill. (UPI) — A spectacular blast to break upa crippled 400-ton bridge span clogging Mississippi River traffic backfired and instead blocked the waterway completely today. About 1,000 people lined the riverbank and boarded towboats and pleasure craft Sunday night to watch the explosion, which was the big- gest fireworks display of the weekend. But the dynamite blast — aimed at breaking the fallen bridge span into small pieces and clearing the river for barge traffic — instead sentit crashing into the waterin one large chunk andripped downpartof the bridge that was sup: posed to be keptintact. Storm’s Toll Stands At 220 The Democratic alternative which would cut tax rates by an average 15 percent over 21 months — is assured approval bythe panel. The Democrats target their cuts more toward taxpayersin the $15.000 to $50.000 income range byboosting the standard deduction and increasing the earned incomecredit for the working poor. A committee staff memberindicated the panel would need about two weeks to complete work on thetaxbill. So far. it has approved a packageof business tax cuts and savings incentives. As Congress heads toward action on then the person usually is in a lower tax bracket Under current law a person with no regular pension, who earns $10.000 or more can deduct up to $1,500 a year for funds invested in an IRA. Someone earning less can deduct 15 percentof his incomeinvested in an IRA In both the House and Senate versions, this limit would be raised to $2,000 regardless of income. Death Toll Tops 500 By United Press International The Fourth of Julyholiday traffic deathtoll passed the 500 mark today. despite hopes that confusion over whentheholiday started and ended might lessen traffic jams and that bad weather might keep people home. A United Press International count early today showed atleast 501 people diedin traffic accidents between 6 p.m.local time Thursday and midnight Sunday. A final count was expected later today California reported the most deaths with 48, followed by Texas with 46, North Carolina and Ohio with 26 each. Florida 23. Illinois 19. New York 18 and Michigan and Missouri 16 each. The National Safety Council had predicted between 450 and 550 people would die in auto accidents during the 1981 Independence Day holiday taxes, it is completing the task of cutting federal spending. Although a giant conference committee still has to put together a final budget cutbill, the House and Senate measures are similar. Both reduce spending in fiscal 1982 by about $38 billion. The bills also would cut spending in the 1983 and 1984 fiscal years, although not enough to balance the budgetin 1984 as Reagan wanted. A major difference is the approach the two bodies take to cutting about$1 billion in Medicaid funds. ing with taxfree interest — until the person is 59'2 years old when he or she can draw onit for retirement. The amount drawnis taxed as current income. but by Fireworks Kill Two By United Press International At least two people died in holiday weekend fireworks accidents. including a spectatorhit in the forehead by a metal tube hurled 200 feet into a crowd at a July 4th display Officials across the nation reported an explosion of fireworks-related injuries and doctors in Philadelphia operated Sundaytosave the eyesight of a 4-year-oldgirl injured with nine others in an explosion triggered when a sparkler apparently ignited a bag of fireworks. This is yourinvitation to attend the exciting WASATCH BANKOF SANTAQUIN MANILA, Philippines . (UPI) — Tropical storm Lynn sent giant waves crashing into 11 coastal towns, leaving more than 65,000 people homeless and bringing the death toll from two storms in the past week to 220 Telief officials said Monday. 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