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Show Income Tax Fax By Peter James Wikel Public Accountant Once again it is time to start thinking of what we can do this year to reduce our income taxes. We have a new tax law that is a whopper. The bill, the hearings and the Committee reports have grown to over 8000 pages of closely printed matter. This makes previous bills seem like short, short stories and "Gone With The Wind" a short evening's entertainment. entertain-ment. This law removes many of the inequities that were in the old law and adds many of the relief re-lief measures we needed for so many years. However, over 500 of the proposed new provisions of this act were thrown out before be-fore it became law and there are still parts that could stand improvement, im-provement, so many authorities believe that 1955 will see extensive exten-sive revisions made. Anyway, we have to pay our 1954 taxes, under this 1954 tax law, and we are going to find that it is giving us a break in many ways. The lowest tax rate last year was 22.2. This year it is 20, a reduction of approximately approx-imately 10. It is up to us to take the fullest possible advantage advan-tage of the new relief provisions in this law. The House Ways and Means Committee has stated, "The purpose has been to remove inequities, in-equities, to end harassment of the taxpayer and to reduce tax barriers bar-riers to future expansion of production pro-duction and employment." Judge Learned Hand stated in Commissioner vs. Newman, "Over and over again courts have said that there is nothing sinister in so arranging one's affairs so as to keep taxes as low as possible. Everyone does so, rich or poor, and all do right; for nobody owes any public duty to pay more than the law demands. Taxes are enforced en-forced exactions, not voluntary contributions." Our only purpose is to call to your attention the many avenues to tax savings that may be overlooked. over-looked. If you have a tax problem we urge you to consult the accountant account-ant or attorney of your choice and to consult him early enough so that he can secure for you the full benefits of the new code. |