Cedar Rapids Gazette, March 25, 1974, Page 5

Cedar Rapids Gazette

March 25, 1974

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Issue date: Monday, March 25, 1974

Pages available: 49

Previous edition: Sunday, March 24, 1974

Next edition: Tuesday, March 26, 1974

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Publication name: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

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Years available: 1932 - 2016

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All text in the Cedar Rapids Gazette March 25, 1974, Page 5.

Cedar Rapids Gazette (Newspaper) - March 25, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: Slon., Mar. 25, 1974 The I nvestor's Gu ide By Sam Shulsky get the impression from your columns that unless a per- son is in the 39-35 percent in- come tax bracket he should not be interested in tax-exempt bonds. Why shouldn't small peo- ple like myself, living on social security plus a little bank in- terest, get a fax break, too? What do you think of the closed advertisement offerii IVs. percent tax free interest? now I've become "meanie" intent on deprivin elderly retired folks living on tight budget of the fjnanci advantages enjoyed by the wea thy! This query keeps repeatin Itself even though I've tried or so I thought to explain many times. Income tax exemption is n free! You pay for it by accep ing less income from your in vestment in exactly the sam way you pay for the luxury of big, heavy 'limousine by accep ing less mileage per gallon. Sam Shulsky Top quality tax-exempt bone offer a current yield of somi where around 5 to 5% percen (I'll deal with your 7% percen figure later.) Top quality taxa ble corporate bonds current! yield around 8 to 8V4 percenl So the difference, roughly, i about 3 percentage points. If you are in a tax bracke below 30 percent, why woulc you accept a year, tax free from a tax-exempt municipal bond when invested. in taxable bond would bring yoi to. 82.50 a year which even after being reduced by in would still leave you with imore than When I write that retired folks living on a tight budge should not consider i tax-ex empts, I am riot trying to help Uncle Sam collect more income taxes. from retirees.! am con- cerned only with the best ne: income for readers. And while I'm at it, let me point .out that a lot of retired folks living- on extremely mod- est budgets are unduly fright- ened by the prospect of income taxes. .Kit's lany comfort, the latest .Income tax instruction book, in .tax points. put return' only :if you meet these 'specifications: Single or widow, or widower, under age 65, and have a gross income of at least sin- gle or widow or widower, 65 ami over, and have a gross' in- come of at least married, filing jointly, living together at end of 1973 (or, at date of death of spouse) and both are under 65, an income of at least if one of above is 65 or olded, the minimum is boosted to 550; if both are 65 or older, Social security is not included in taxable income. You say you are living on so- cial security plus "a little bank interest." If these are the only two sources of income, and if you and your husband are over 65, you would have to have more than in savings at 6 per- cent before you would even have to file an income tax return let alone pay any taxes. (And iven a higher income would, of course, first be subject to vari- ous deductions medical, char- curities, whether you can af- ford the risk of common shares. I have no idea of your age and income needs. You could raise income about I percent. Would this extra a year justify your taking chances? Suppose you tell me. .Mr. Shulsky welcomes written ques- tions, but will to provide aS- swers only through the column. Hits of inwth end Dividend stocks, please to elude a sell-addressed, stameed envelcoe. Address your requests

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