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Show FRIDAY, JULY 18, 1975 Page Eight Inflation Pushes Up Tax Bill For Individuals And Business Inflation has been far more ment as it wears out or become important than all other factors obsolete. Dividends paid to stockholdcombined in the rise of the state income tax liability for the typ- ers are taxed causing business to ical family in Utah during the seek new capital through borpast two years. This fact was rowing rather than through emphasized in a study of infla- equity. Often this practice dition and taxation prepared by verts business away from what is Utah Foundation, the private tax best on economic or fiscal research organization. grounds to what is attractive in The Foundation study notes the light of prevailing tax laws. Foundation analysts point out that inflation tends to shift taxmost payers into higher tax brackets that the tax laws of much other more where a progressively larger per- industrial nations are to funds centage of income will go for liberal with respect taxes. In addition, Utahns will needed for investment purposes be subject to higher state taxes than is the United States. As a parnext year because of (1) the tax result these other nations GerWest and 1975 ticularly Japan increase authorized by the have been devoting a Utah Legislature, (2) the inabil- many proportion of their gross ity of individuals in Utah to take higher national product to capital inadvantage of the generally more liberal provisions of the 1975 vestment. As these other nations Federal Code on their state re- expand and modernize their inturns, and (3) the smaller deduc- dustrial plants, thereby affordtions which will be allowed on ing greater efficiencies and lowthe 1975 returns resulting from' er unit costs, the United States is placed at an increasing comreduced Federal taxes. disadvantage in world Although inflation pushes up petitive tax bills and changes many of trade. Acording to the study, huge the traditional concepts of equity outlays by business will in the tax laws for individuals, capital be needed in the decade ahead to the Foundation study observes solve multitude of problems that it may have an even more faced the the United States as by pronounced effect on business well as provide employment opand industry. Among the facfor the growing labor tors affecting business are the portunities force. An average capital infollowing: vestment of S25,000 or more is Capital gains are taxed even required to provide one job in though such gains merely repre- private industry for each new sent inflated dollar value, not job seeker. Each year there are real purchasing power. approximately 1,300,000 new enare trants in the nation's labor profits" Inventory taxed even though such funds market. are needed to maintain inventory New capital formation relower-colevels by replacing quires new savings. Present tax higher-price- d with sold goods policy in the United States, howor materials pur- ever, tends to discourage savings merchandise chased. and production while encouragThe report Use of historic cost rather ing consumption. than replacement cost in calcu- emphasizes that the opportunity lating depreciation allowances to consume ultimately depends prevents business from replac- - upon the ability of the nation to ing plant, machinery, and equip- - produce. the Transportation Departments list of hazardous crossings. From 1972 to the present, twelve accidents have occurred at the crossing, three of the them fatal. This project calls for the construction of the first combination cantilever-automatic gate signal device in the state. The cantilever type signal is a permanent structure which houses flashing lights and extends over the highway at the railroad crossing. Special high intensity strobe lights will be used on the cantilever signal for easy visibility. The signal gates which will be used at the 400 West railroad crossing are specially designed to block all four lanes of 7200 South. The railroad improvements, which are a joint effort of the Union Pacific Railroad Company and the Transportation Department, should greatly reduce accidents at the crossing. Other improvements on 7200 South provided by this project include placing the final 1 h. inches of pavement on 7200 South, and modifying a raised median near State Street to prewhich are proving vent to be a safety hazard. U-tur- ( over-committe- d" et et et et et old-fashion- et i By Congressman The railroad crossing at 400 cordance with the compact entitlement for Utah, it does not mean that water is waiting for a potential energy developer to step up and use it. The availability of that water depends on the existing rights with senior priority dates. Already-approve- d permits in the basin would require the diversion of about a million acre-fein addition to present depletions and there are currently cn file yet unapproved but valid applications for still another million acre-fee- t, he said. per quantity of 50,000 acre-feHe cited the obvious critical year, Utahs share is 23 percent decision in determining the use of what is left and the remain- of the small balance which ining 77 percent is apportioned to volves the consideration of Colorado, Wyoming and New whether that balance should be Mexico. used for energy or agriculture That 23 percent is over 1.3 or changing the use of the presmillion acre-feper year en- ent consumption of water from titled for consumption in Utah one purpose to another. and we are now using about It is this determination that 825.000 acre-fee- t. has inspired a growing fear m However, when authorized some quarters that an water war, with enprojects and those currently under construction such as the tirely new dimensions, may be Central Utah Project and the evolving between energy and agKaiparowits power plant have ricultural interests over the limreached full production another ited supply in the Upper Colorwill be used ado River Basin he said. 200.000 acre-feThe right to use water for and will bring the onsumption in t, acre-feehe cess of a million energy under Utah State law is a key element and, Senator Moss id, Utah is determined to He emphasized that this arith- said, unexert of strong State leadership 1o etic shows a balance acattain efficient water use. ;ed water at this time in Continued from page 1) River water is already grossly he noted, because approved permits and valid applications exceed by nearly 2 the amount of million acre-fewater available. He noted that the Bureau of Reclamation has conservatively assumed that the total supply of water available in the Upper Basin is 5.8 million acre-feper year. According to the Upper Colorado River Basin Compact, which gives Arizona a fixed A project to place a final surface on 7200 South between State Street and the frontage road immediately east of to modify dividing islands on 7200 South, and to improve a railroad crossing at 400 West and 7200 South was opened for bid today by the State Transportation Commission. Staker Paving and Construction Company of Draper, Utah was the apparent low bidder with an $87,180.20 bid. The official engineers estimate was West and 7200 South is high on Water War ed 200 Years Ago This Week $87,268.50. Moss Warns Of Possible Old-Fashion- Improvements Set For 7200 South 1-- 15, st ed SALT LAKE TIMES ns As America prepared for an Patriots raided the royal stores battle for independence, at Turtle Bay, New York on the Continental Congress worked July 20, 1775. The raid was led on the details of the revolution. by John Lamb Isaac Sears, AlexOn July 18, 1775, Congress ander McDougall and Marinus organized a systematic procedure Willett New York Sons of Libfor importing firearms gun- erty who were all to become all-o- ut powder and the other items needed for the fight. Congress appointed three commissioners, on July 19, 1775, to negotiate treaties with the Indians, and voted $17,000 for purchasing gifts for the Indians. The consensus of opinion was that the Indians could not be persuaded to fight with the colonists but that by signing treaties with them they could be kept from fighting with the British. Congress also discussed what form of government the colonies should adopt. Ben Franklin proposed his plan for confederation and perpetual union, The United Colonies of North America, and it was considered on July 21, For Utah Totaling 70 Million Dollars continued from PAGE Until this week 200 years ago there were only 12 colonies united in the fight for independence. On July 20, 1775, Georgia joined the new union. There was also action on the battlefield. ; Utah's Comparatively Healthy Economy Shown In Foreclosures Utah compares well in this Utahs comparatively healthy economy is reflected in home statistic with a lower than nomortgage foreclosures rate that tional average unemployment is more than five times below rate. In may the seasonally ad:he national average. justed figure was 7.9 percent es I I ! compare to 9.2 percent across the country. Beginning July, the monthly maximum unemployment check for Utahs increased from 593 to $101 benefits may be extended to 65 wreek according to Bill Morner of the Salt Lake Office of the Utah Employment Security Department. Even nationally the foreclosure rate on homes is minimal. Lending institutions are hesitant on mortgages for a number of reasons. Primarily foreclose involves a great deal of time and money. Utah Statutes specify a time lapse in foreclosing a mortgages and it involves a large attorney fee. Added to the time initially spent in trying to work out an arrangement with the mortgage lender lengthy court procedures Voting Rights Act Could Affect Four Utah Counties (Continued from page 1) 1 worked to the State this wxek and will immediately be put into short term repurchase agreements until long term investments are planned. The last session of the Utah' State Legislature approved the bond issue to finance new state buildings and an expansion of the University of Utah Medical Center. famous in the revolution. The surprise raid took place near what is now East 42nd St. on Manhattan Island? The stores seized were sent to Boston and Lake Champlain. On July 21, 1775, Major Joseph Vose led an American raid on Great Brewster Island, (also known as Light House Island), Massachusetts a mile offshore from Nantasket Point. The raiders confiscated lamps, oil, gunpowder and boats, and burned the wooden parts of the lighthouse. The Americans were met by an armed British schooner and several boats full of men. In the ensuing clash two Americans were wounded. On the home front, New York observed a Day of Fasting and Devotion on July 21, 1775, in accordance with the recommendation of Congress; presumably similar ceremonies took place in all or most of the other colonies. 1775. The Federal Home Loan Bank Board of Washington, D.C. indi-:atthat whil foreclosures are General increasing in Utah the number Attorney still very small. Office Says Cross Over is Figures compiled in 1973 and month intervals show 1974 at six Vote Not Illegal that the percentage of foreThe Utah Attorney Generals closure in the state increase Office says there is not legal from .011 in the first half of reason a Democratic state sen- 1973 to .037 for the second half ator cannot vote a republican in 1974. senate president. Converted this means an averAssistant Attorney General age of 3.7 foreclosurers for each Clyde Pearce said this week he 10,000 home mortgages for the has found nothing in the senate last figure. rules state law' or the state conNational the statistic for the stitution which would prohibit a second half of 1974 was .194 for senator from one party voting to 19.4 foreclosures for each 10,000 elect a president from the op- mortgages. position. Economist anticipate an inThe opinion was the result crease in foreclosures as unemwas the result of an announcerate continue high ments by Senator Carl Petters-se- n ployment when unemployment benefit run that he is thinking of voting out there may be an upswing in with the GOP to ost fellow the number of persons who lose Democrat Senator Ernest Dean of American Fork as Senate President. Signing Finalizes Bond Allan T. Howe years. A second provision requires that a county with a single-language minority of greater than percent and an illiteracy rate greater than the national average must hold bilingual elections for 10 years. These counties can be exempted if the illiteracy rate drops below the national aver5 San Juan County is also affected under the first provision. These jurisdictions will be required to conduct bilingual elections for the next 10 years unless they qualify for the exempting provisions, said Mr. These requirements McKay. will mean more work for the counties, but they will extend the critical right of voting to some of Utahs minority populations. age. Mr. McKay said four counties Mobilizing health facilities and Peace of mind: The content- in Utah arc affected by the secSan manpower to provide more effecment of the man who is too busy ond provision. They are to worry by day, and too sleepy Juan and Uintah for American tive maternal and infant care is Indians and Carbon and Tooele a major goal of the March of to worry at night. minorities. Dimes. Woodrow Wilson for Spanish-speakin- g |