Hide Article Text (OCR)
That Payroll Check Will Be Smaller NowWASHINGTON (AP) — The federal government started tak. ing a bigger tax bite out of Americans’ paychecks today asthe 10 per cent income surtaxrecommended by President Johnson to help pay for the Viet, nam war finally went into ef.feet.All paychecks received from today on must reflect the sur-charge through an increased de. duetion for federal income tax.es.The 10 per cent increase is on the federal tax Americans al. ready have been paying, not on their total wages.If $20 had been withheld from each weekly paycheck for feder-Arbitration Mulled As Demo Deadline INearsCHICAGO (AP) — The Illinois Bell Telephone Co. was studying today a proposal of the striking electrical workers to submit their long and sometimes bitter dispute to binding arbitration.After a two.hour meeting Sun-day called by Gilbert J. Seldin, top federal mediator, the utility agreed to consider the union’s verbal proposal. A union spokes, man said an answer was expect, ed by today “at the latest.’’The 69*day wage dispute be. tween the International Brother, hood of Electrical Workers, Sys. terns Council T.4, and Illinois Bell threatens to move the Dem. ocratic National Convention from Chicago.Robert A. Nickey, chairman of the council, told a news conference that union leader had presented company officials a plan to submit the prolonged dispute to binding arbitration.The company will “consider the proposal as expeditiously as possible,’’ a Bell spokesman said.Union members could return to work during arbitration said Nickey, if this procedure for set. ting the strike is “mutually sat. isfactory” to both sides. Such a step, however, “would have to be settled as a separate back, to.work agreement,” he added.Nickey said if Illinois Bell re. jects arbitration, the union will have no recourse but to file a charge of “unfair bargaining practices under the NLRB (Na. tional Labor Relations Board).”The company has suggested that putting its current offer to aal taxes, for example, $22 will be witheld beginning today.All paychecks must account for the increased withholding to cover the surcharge even if the money was earned before this week. Only persons in the two lowest income tax brackets are exempt.President Johnson originally submitted the surcharge to Con. gress last Aug. 3 and asked for an Oct. 1 effective date for indi-viduals.When Congress failed to act last year, Johnson changed the effective date for individuals to last April 1, a date approved by Congress in the measure finally passed in June.Because of this retroactive feature, the tax withheld from paychecks won’t cover all the money individuals will owe the government by the end of De. ember.The extra 3Vz months must be paid when Federal income tax returns are filed by next April 15.This will mean smaller and fewer refunds next year and larger payments of additional tax.For calendar 1968 as a whole, the surcharge will represent an over-all increase in taxes of 7.5 per cent since it will be paid for only nine months of the year.The surcharge is scheduled to expire next June 30 but at least one administration official, Un. dersecretary of Commerce Howard J. Samuels, already has urged its extension to help pay the nation’s social legislation costs.That decision will be up to the administration elected in No* vember, and to the new Con. gress.The tax is intended to help meet the cost of the Vietnam War—now running more than $28 billion a year; to keepPresi. dent Johnson’s Great Society programs rolling; to stem infla. tion, and to reduce a budget def. icit which in the last fiscal year rose to about $25 billion—fourth largest in history.Coupled with the surcharge package is a congressional man.date to the administration to cut spending by $6 billion.In addition to the surcharge on individuals and corporations, the new law also speeds up col-lections of corporate income taxes and extends the 10 per cent excise tax on telephoneservice.WlkTI ^1
Newspaper Details
Norwich Evening Sun
Norwich, New York, US
Mon, Jul 15, 1968
Page 1
Full Page
Clipped by
Alan M.
USA 04 Sep 2020
Other Publications Near Norwich, New York
Norwich Evening Sun
Norwich Sun
