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Mason City Globe-Gazette (Newspaper) - July 24, 1963, Mason City, Iowa To push liquor cigarette deduction on income tax DUBUQUE cost of smoking awl drinking in Iowa will be reduced a bit it Rep John L Duffy BDubuque has his way in the 1965 legislature Duffy said that if reelected he will sponsor a bill to change the wording of the liquor and cigar ette tax laws to make it possible to deduct these state taxes when computing federal income tax The Dubuque lawmaker an at torney said it could mean a de duction of a year in cigar ette taxes alone for a person smoking one pack a day With a 10 per cent tax pn liquor bought by the drink the customer pays a levy of 7 cents for each 75cent drink A man and wife go ing out once a week and having three drinks apiece each evening out at this price could deduct from their joint tax return at the end of the year he said The change would not reduce state revenues aor would it in crease the tax rate but it would enable the consumer to recover some of these taxes from the fed eral government through income tax deduction Duffy said He said the Internal Revenue Service has ruled that existing Iowa taxes on liquor by the drink and cigarettes are not deductible because the law does not spell out that they are to be collected from the consumer The liquor tax is listed as an occupational tax of 10 per cent on alcoholic beverages sold by the drink The cigarette lax in creased from 4 cents to 5 cents a pack by the 1963 legislature is worded as a tax on the wholesaler who makes the first sale The Internal Revenue Service has ruled that to be from Ihe federal income tax a state lax must be imposed direct ly on the consumer Duffy said a change in the laws to spell out that these taxes must be paid by the consumer would make them deductible He noted lhat the law already allows the wholesaler and retailer to pass the tax along to the consumer Other states are taking advan tage of this saving why shouldnt Iowa Duffy asked State sales taxes including Ihc 6centspergalloa levy on gaso line already are deductible for federal income tax purposes Duffy said liquor bought by the bottle in stale stores carries the standard 2 per cent sales tax which is deductible An Internal Revenue Service agent said that if Ihe laws were changed federal tax agents prob ably wouldnt question claims of normal deductions for cigarette urn liquor taxes But he warned that the person smoking or drink ing more than the average would need to keep cash register re ceipts or similar evidence to prove his deduction if he were called upon to do so North Iowas Daily Newspapei Edited for the Home The newspaper that makes all North lowans neighb or s MASON CITY GLOBEGAZETTE Home Edition VOL 103 AMoeUtod Prta and United Prcw International Full MASON CITY IOWA WEDNESDAY JULY 24 W3 10c a Consists of Four No 142 Vote to cool offices OK to air conditioning DES MOINES UrWTwo mem bers of the State Executive Council approved Wednesday the controversial project of air conditioning the offices of Iowa elective officials One member opposed Two of the three members pres ent at the council session voted to accept a low bid on installing the air conditioning equipment in offices which do not already have it Agriculture Secretary L B Lid dy and Auditor Chet Akers voted to go ahead with the project over the opposition of Secretary of State Melvin D Synhorst The oth er council members Gov Harold Hughes and Treasurer M L Abraharrison were absent Atty Gen Evan Hultmans office told the council Wednes day that its 21 voteconstitutes approval of the project The air conditioning controversy began earlier in the surnmetswhen the council approved jnstaUatioh of an air conditioner in Hughes private office but apparently de ferred action on air conditioners for other elected officials Later the council made ar rangements for a survey of the offices with a view to installing air conditioners Then last week installation of an air conditioner in Liddysoffice was approved when three council members signed a letter agreeing to installation The three were Liddy Akers and Abrahamson Synhorst was critical of the ac tion saying he had not been in formed of the approval Hughes was out of town The action Wednesday would ac cept the low bid of Potthoff and Rosene Co Inc of Des Moines for air conditioners in the gover nors outer office the treasurers office the secretary of states outer office only the auditors outer office and the attorney gen erals office Potthoff and Rosene also re ceived a contract for the equip ment already installed in the governors private office andthe secretary of agricultures office Total cost for all the air condi tioners now planned would be including cost of the equipment and installation Akers already has an air condi tioner in his private office Charles City site for Nora Springs hearing i The Chi and Pacific I s post notice new rules to start Will Congress pass Apact WASHINGTON certain reception un in the Senate awaits a nuclear testban treaty which US sources say is all but completed in Moscow Secretary of State Dean RusK and disarmament agency director William1 C Foster sought to blaze Lad hurt in ROMNEYS AND HUGHES ATTEND Michigan Gpv George Romney front and his wife Lenore and Iowa Gov Harold E Hughes and v Photofax his wife Eva Mae enterthe ballroom where they attended National Gov ernors dinner and ball at Miami Beach Dont evade civil rights says Johnson to governors MIAMI BEACH Fla Ad monished by Vice President Lyn don B Johnson that partisanship is no answer the nations gover nors continued a staccato political fire in the civil rights controversy Johnson told the 55th annual Governors Conference at its for mal state dinner Tuesday night that public leaders could not keep their trust by exploiting the is sue for partisan ends or dis couraging its resolution for per sonal advantage DES MOINES cago Rock Island Railroad Co has asked permis sion to discontinue agency serv ice at Nora Springs The Iowa Commerce Com mission has set a hearing on the request for Aug 22 at the Floyd County Courthouse it Charles City SHE RELAXES MOBILE Ala Mary Reinsch said she considered her 100th birthday Tuesday a mile stone because after 99 I think a woman can relax North Iowa Weather outlook partly etowdy or likely Wednesday arid Wed rwtday nifht in Thursday in Hi American politicsmust not be less responsible than the elector ate it serves Johnson Jsaid There can be no Democratic an swer or Republican answer no White House or stale house answer no 1964 answer but only a responsible American answer achieved by all of us at all lev els working together all of the time for and with the people Only a few hours earlier the Democrats had blitzed Gov Nel son A Rockefeller and other Re publican state executives at the climax of a threeday fight to put the Democraticdominated Gover nors Conference on record as fa voring strong civil rights action Wallace of Alabama Ross Bar ett of Mississippi and Donald S ussell of South Carolina voted no There was a little political sug r for everybody in this method settling the civil rights matter Kennedy administration Demo rats got credit for authoring the motion by which the conference irected its new ninemember xecutive committee to cooper te with the President and vari us agencies in the field of im roving facial relations Under the rule that gives the party that does not hold the chair manship a majority on thispar icular committee Democrats Taking advantage of their 3 margin the Democrats rolle over the Republicans who were threatening to steal tlieir public NELSON ROCKEFELLER f thunder on the civil rights uestion A motion by Democratic Gov ohn Dempsey of Connecticut to istriict the conference executive ommittee to give priority to civil ghls in its operations in the next ear won by a 383 vote Democratic Govs George C would outnumber Republicans 54 and thus control the policies to be pursued Republicans could claim that by the verbal pounding they gave the issue they forced the Democrats toact Democrats wipedout the river bluffs NORA SPRINGS David Sletten 16 son of Mr and Mrs Marvin Sletten narrowly es caped death Tuesday night when he fell about 40 feel into the Shell Rock River The youth with two other boys Craig and Vance Loeffler was camping on the south bank of the river east of the bridge The bluffs there are from 40 to 50 feet high About 11 pm Sletten went to look for firewood and missed his footing in the dark The other boys were able to get him out resolutions resolutions committee in order to and all avoid a conference filibuster over civil rights of the water and part way up the bluff to a ledge He was taken to Mercy Hos pitai Mason City by ambulance after receiving first aid from a Nora Springs physician He is in satisfactory condition will head and back injuries accord ing to hospital authorities a pathforthe treaty Tuesday by showing a draft of the proposed agreement to the Senate Foreign Relations Committee Afterward committee Chairman J W Fulbright DArk said it was possible the Senate would ap prove it this session but declined to go so far as to predict that would happen Republican Leader Everett M Dirksen of Illinois would predict only that the set lively fie said he wouk not know until he had seen all ol he provisionswhether he would oppose it or not Informed sburces said Amer can British and Soviet negotiat DEAN RUSK ors had virtually completed their vork on the testban pact and vere preparing to issue a final ommunique soon perhaps later Vednesday Signing of the treaty would send t to the Senate which must ratify by a twothirds vote before it Becomes binding upon the United itales After the briefing by Rusk and Foster Fulbright made these xiints to newsmen 1 No commiUee member op posed the limited test ban during the closed session but no mem ber had committed himself to sup port the treaty nor had Rusk re quested this 2 The test ban is not yet final US negotiator W Averel Please turn to page 2 Inside The Globe BOB KENNEDY hits race issues again Page 2 MORE in U S are making million dol lars i Page 3 THOMPSON is host for Winnebago Junior Show Page 17 HAMPTON HOME Burr house ingc Page 20 the nuity built Editorials Society news 5101112 North Iowa news 1617 Sports news 2324 Clear Lake news2728 Latest markets 36 Mason City news 3437 Classified pages 4243 Ignore plea to delay FROM OUR WJRE SERVICES CHICAGO Midwestern rail roads Wednesday began posting notices to employes of work rules changes to be effective at am July 30 There was no immediate in dication that the action meant the nations railroads would turn down a congressional re quest for a delay in the posting Charles City Elks Club safe robbed CHARLES 000 was taken from the safe at the Elks Club here early Wed The theft was discovered about 8 am by Casey DcWilde janitor at the club Manager Joe Seger had left the club at am According to Police Chief Kermit Binger there was no evidence1 to show how the build ing was entered He said it was possible the thieves might have entered earlier in the evening with guests and stayed inside until after the club was closed The safe was opened from the front by removing the dial ac cording to Chief Binger on the ii t of rules changes The work jj rules will affect ive onfrafn brotherhoods rep esenling about 200000 em loyes of the railroads Among the railroads posting ie notices were the Chicago t orth Western the Milwaukee he Burlington the Illinois Cen ral the Rock Island and the anta Fe Chairmen Orcn Harris D Vrk of the House Commerce 2ommitlec had asked the na ions railroads to hold up for another 30 days the new work rules He said Congress could not enact legislation to avert a strike by that time addressed his request to P Loomis president of he Association of American ailroads as Harris commit e opened hearings on Presi ent Kennedys plan to have nterstate Commerce Commis ion consider work rules for crewmen Loomis said he couldnt givs yes or no answer but that the ailroads svould consider the ap cal Loomis went on to say an tther postponement would drain ff more of the life blood of n anemic industry Weve already been delayed ncl this has continued for some our years Loomis said The railroads contend that orced employment of unneces ary workers is costing them millions of dollars a year Secretary of Labor W Wil iard Wirtz leadoff witness for he administration plan sat puffing on his pipe as the chair man and the railroad official lad their exchange Harris said he asked the rail roads to postpone for 30 days heir new manpower trimming work rules to avert a national walkout Rail unions have said hey will strike the minute the rules are imposed Harris said he did not con sider the request unreasonable and hoped the railroads would go along TRAIN clear debris from area of one of three railroad cars that had sides ripped off when train sideswiped a diesel A man and a woman passengers on the train were killed in the Photofax collision two miles from downtown Newark N J The passenger train of the Port Authority Trans Hudson line was enroute from New York to Newark SAME Iowa Department Fifnret Black FU Mean in Fait II Hours
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