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Income Tax Rates Explained
TAX RATE TABLE
Higher tax rates, narrower
brackets, initiation of a system of tax credits instead
of exemptions, and a requirement that large taxpayers file
estimates and prepay a portion of their State income
tax were the principal personal income tax changes
enacted by the Legislature
last week.
The state personal income
tax rates were increased to
a maximum of 10 per cent
from a previous high of 7 per
‘cent. After an initial bracket
of $2,000 at the 1 per cent
rate, the brackets were narrowed from $2,500 to $1,500
for each tax rate for single
individuals and married individuals filing separate returns, and from $5,000 to $3,000 to taxpayers filing joint
returns. The initial bracket
for joint returns is $4,000.
y The new rates will be included in the instruction booklets mailed to taxpayers later
this year. Martin Huff, Executive Officer, said.
The installment plan requires a taxpayer to make a
prepayment on his 1967 tax of
50 per cent of his 1966 tax
liability. This payment is due
by Oct. 31, 1967. The prepayment requirement applies
only to those taxpayers who
paid more than ~ $200 ($100
for married individuals filing
separate returns) in State income taxes for 1966.
An alternative computation
and payment may be made
by those who expect their
income to decline for 1967
but, regardless of the revised computation, the estimate must be filed by Oct.
31, and the payment must also be made at that time if
the ($200 or $100) test is
met.
A penalty of 10 per cent
will be assessed on that
amount by which a payment
falls short of the amount required to be paid as an esestimate. In addition, interest
of 6 per cent per year will
be charged on all unpaid
amounts.
Tax credits have been substituted for the personal and
dependent exemptions previously used. Taxpayers subtract their itemized deductions from their gross income, figure their tax on the
basis. of the taxable income,
and then deduct the appropriate tax credits. Credits included in the bill are $25
for single persons, $50 for
married persons and heads of
household, $8 each for depaint and an additional
8 each for blind persons.
The Franchise Tax Board
staff is working on the
necessary forms and notices at the present time,
Huff said.
It is the intent to notify
those taxpayers who should
file estimates and prepay a
portion of their 1967 tax, Huff
said, but the lack of such notices does not relieve the taxpayer of his responsibility to
comply with the new law.
““<Taxpayers interested in additional information should
contact one of the offices of
the Franchise Tax Board either by telephone or by letter.
Offices are located throughout the State, he said. Peraaons who do not have a branch
located nearby can -contact
the headquarters office, 1025
P Street, Sacramento, California.
Individuals Filing Separate Returns
Total
Taxable Tax on % on
Income Column 1 Excess
© aes S$ heus 1
2,000 20 2
3,500 50 3
5,000 95 4
6,500 155 5
8,000 230 6
9,500 320 7
11,000 425 8
12,500 545 9
14,000 680 10
Head of Household
Total
Taxable Tax on % on
Income Column 1 Excess
S Sees SB rstieve L
3,000 30 2
4,500 60 3
6,000 105 4
7,500 165 5
9,000 240 6
10,500 330 7
12,000 435 8
13,500 555 9
15,000 690 10
Joint Returns of Married Persons
Total
Taxable Tax on % on
Income Column 1 Excess
S sews S ates 1
4,000 40 2
7,000 100 3
10,000 190 4
13,000 310 5
16,009 460 6
19,000 640 7
22,000 850 8
25,000 1,090 9
28,000 1,360 10
Max Rafferty
to Speak at
Nevada City
Max Rafferty, superintendent
of public instruction and director of education for the
State of California, will be
the principal speaker at the
“Constitution Day” celebration in Nevada City, the afternoon of Sunday, Sept. 10.
He will arrive in time to ride
in the parade preceding the
patriotic ceremonies.
Being aware that Rafferty’s
services as a speaker are in
big demand, the Masons’
“Constitution Day” committee started corresponding
with him last January relative to his coming. On May
10 Nevada Lodge No. 13 received a letter confirming his
appearance here for Nevada
City’s first “Constitution Day”
parade and patriotic ceremonies. The committee is indebted to Don Matson for
helping make the right contacts.
To clear up any doubts about
parade entries, Bill Lambert,
master of Nevada Lodge, urges all organizations and individuals interested to enter
the parade. More than 80 invitations and individuals invitations were mailed out, but
no doubt some groups were
missed. Patriotism and U.S.
History is the main theme,
a colonial touch is desirable,
but anything of public interest
is most welcome. Anydne desiring a parade entry form
or further information may
call Bill Lambert at 2652878.
Mrs. John Elliott and Retha
Downey of the Captain John
Oldham Chapter, Daughters of
the American Revolution are
cooperating with the Masons
in sponsoring this event.
Kuchel’s Views
on Wiretap
WASHINGTON — U. S., Senator Thomas H. Kuchel has
announced that he favors antiwiretap legislation, but that
such laws “must not prevent
law enforcement authorities
throughout the United States
from using certain investigative techniques necessary for
proper enforcement of the
law.”
In a statement introduced
with letters into the Congressional Record, the senior senator from California said that
he wanted to curb “the promiscuous and unconstitutional
use” of electric eavesdropping
devices. A bill to curb wiretapping and eavesdropping is
currently pending in the House
of Representatives.
But Kuchel also noted the
growing crime rate and “the
terror that strikes at the heart
of major cities throughout
America today” as a reflection of “crime in its most
destructive form.”
Citing the need for a balance
between the interests of privacy and the needs of law enforcement, Kuchel said it can
be acheived “by allowing law
enforcement officers the continued use of electronic investigative techniques permitted
under the Constitution, with
full protection of citizens’
rights by such safegruards as
court approval.”
Kuchel termed such a compromise “one step forward”
against crime.
Kuchel introduced into the
Congressional Record a copy
of letter from Evelle J. younof letter from Evelle J.
Younger, District Attorney of
Los Angeles County, which
supported an anti-wiretap bill
for the sake of privacy, “if
drafted in such a way as not
to prohibit police practices
which would otherwise be lawful, and which are not undue
invasions. of an individual’s
privacy.”
The police practices which
Younger mentions include recording or intercepting conversation “with the consent
of one of the parties” in such
cases as kidnap ransom requeststhey also include a
provision that “in certain serious cases a court order can
be obtained by law enforcement agencies to intercept
telephonic communication
without the consent of either
party.”
Kuchel responded to Younger
that he would “support legislation to protect the privacy
of the public only if it does
not unduly limit the activities
of legitimate and effective law
enforcement.”
Access Road to
Be Constructed
Congressman Harold T.
“Bizz” Johnson, representing
Placer and Nevada Counties,
today am:ounced the award of
a U.S. Army Engineer Contract for consturction of an
access road to the Martis
Creek Reservoir near
Truckee. ,
The G & T Construction
Company of Sacramento, will
do the work for $179,000. The
work consists of clearing the
roadway and surfacing the
roadway and parking areas.
Chappie Bill
Is Approved
The Senate has approved .
naa of a bill by Assemlyman Eugene Chappie (RCool), chairman of the Assembly Social Welfare Committee, designed ultimately to
save the state $6 1/4 million
annually in payments for attendant care services to public assistance recipients.
The measure, AB 1327, offers a plan for more efficient
use of state and county funds
for supervised care for recipients of Old Age Security .
and Aid to the Disabled. Simultaneously, it creates a source
of employment for capable
public aid recipients.
The bill provides for the
improvement and expansion
of home-care services for
aged or disabled welfare beneficiaries, preventing the necessity for removing these
persons from their own
homes and placing them in
institutions at a substantially
greater cost. In addition, the
State Department of Social
Welfare is directed to develop homemaker service
programs for the training and
employment of able-bodied
recipients to carry out homecare duties for shut-ins ata
reasonable cost.
In commenting on the bill,
Assemblyman Chappie stated,
“This will mean a two-way
attack on reducing the cost
of public assistance: first, by
offering employment to qualified recipients, and second,
by reduc the cost of services to those incapacitated
recipients.”
The bulk of state cost reduction will result from a
shift in the type of financing
involved. The federal government presently reimburses
the state for 50% of the cost
of attendants employed by recipients. Under the new program, they will pay 75% of the
cost of employing homemakers to handle these responsibilities. This will reduce
state expense by over $6 million a year.
Sculpture at
California Fair
SACRAMENTO-Art fanciers and interested visitors
will have a chance to see
sculpturing in action during
the California State ‘ Fair’s
12-day run, Aug. 30-Sept. 10.
Noted artist Bob Fullerton
of Sacramento has been
scheduled by the State Fair’s
board of directors to sculpt
a giant seal of the State of
California out of a solid block
of redwood donated by the
redwood industry of California.
Fullerton will begin his task
the first day of the fair, and
he says that he will finish it
it by the last day of the fair,
Sunday, Sept. 10.
He will carve the seal in an
active artist’s colony adjacent
to the fair’s art building. Other activities taking place in
the area include pottery
making, sketching and jewelry
making.
Besides the traditional art
awards winner’s paintings,
the state’s top photographs
of 1967 and many handcrafted jewelry pieces will
afl on display during the
air.