Page. 2
THE CHINA MAIL, MONDAY, JULY 31, 1981.
Bid to reform U.S. tax system stirs dispute
New York, July 30.
When talk of tax reform gets down to debate, it soon gets harder and harder to see
the true issues.
The carefully evolved plans of objective economists for a broad overhaul of our whole federal tax structure to sweep away tax inequities and tax barriers against economic growth soon have their main outlines blurred by bitter disputes over thorny problems involving specific classes of people and specific businesses.
SUMMER SCHOOL FOR BANKERS
The 14th International Banking Summer School, organised by the Institute of Ban- is kers. in now in session at Christ Church. Oxford. The theme for this year's lectures "The City of Candon as a centre of International Trade and Finance". Bankers from all Picture over the world, including the Communist countries, are attending the clinal. shows bankers talking in Tom Quad. Oxford, are, from left: Me T. P. Hennessy (Pro- vincial, Bank of Ireland), Mr J. Modzelewski (Narodowy Bank, Póland), and Mr Eduard
Goyte (State Bank of the USSR).
Profits in
American
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ARIES
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A valuable guide to every investur, our Selected Lám gives you Buy, Switch and Hold recommendations on over 50801 actively-traded. Ameriosa storks,.. quality ratings. Barbe Favorites for possible pains, growth, or good current incuer.
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SERVICE AFFILIATE OF BACHE & CO.
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ᏗᎢ 1
PASTRY
HONGKONG STOCK EXCHANGE
by
Our Own Correspondent
Business done on the Hong- kong Stock Exchange this morn- leg amounted to approximately $1,420,000, Noon quotations and the murning's transactions:
Buyers Sellers
Shares
Sales
TKC fank
XD
JOC 24
10 and 130 364
UK Bank
Lum.
XD
240 301
463
Taubeaut..
Allied Inv. Waart
312 *90 50386 Wheeluck.. 12.96 13 100 12.00
Wheetack
Might
MK Xick'
There are a great many of these problems. The most im- portant are:
Depreciation
allowances.
These affect all our in- dustry and much of our cum-
merce.
Machines and plants beeLINE obsolete or obsolescent much faster than they used to, yet our present tax system clings to old imhinned allowances for de- preciation. Industry In other countries with whom wu must compete is allowed much faster depreciation by their tax laws. This makes it harder for American industry to compete in foreign markete and can slow dierss Industrial growth home in the opinion of econt+7= ists and business leaders.
52
But discussion of the actual changes that should be made in the depreciation. allowances Bruuses bitter controversy politicians — especially Bamong with labour union economists.
Depletion.
مون
WALL STREET STOCKS SENT
SKY HIGH
New York, July 30,
President Kennedy's big sponding plans jolted the stock market out of its sum- mer lethargy last wook, sending prices a headlong dash to near-historic highs.
on
AUSTERITY
MEASURES
DOMINATED
The
LONDON
MARKET
London, July 30. economic "medicine" sarved up to Britons by Chancellor of the Ex- choquer Mr Selwyn Lloyd Tuesday dominated stocks throughout the week.
SCIENCEAL
ENGINEERING
Unique British measuring instrument
The advance, accomplished Minute changes of level in reinforced
on the heaviest volume in twơi months, added roughly $11,300 million to the aggregale value of alt slocks listed on the Ex- change.
The rise was seen by analy- sts as a vale of confidence In present government policies so far as they affect business and the economie outlook.
Sentiment that the Prest- mili- dent's sharply increased lory spending plans for com- bating Communist pressures might trigger a business boom late this year or early next. coupled with the fact that the President did not ask for an Immediate tax boost, cheered Investors.
Much of the leadership came from the quality market groups
and individual pivotals rather which captured investor fancy and provoked a massive stock investigation u Icw months ago.
thau from the newer issues
market cannot
a new
An oil mining company be sure of finding intucral deposil to buy as a re- placement for one used up. Bu felury owner con always build
new plant to replace one that is worn out or becomes
obsolete. So tax laws give the oll and mixing people à deple- 11011
allowances
their on
The planis. machinery and proper rates for depletion and even the principle of depletion allowances cause bitter con- troversies whenever tax reform cainos up.
WHOLE INCOME
Dividends. Since corpora- tons pay a big income tax on their earnings, It is true that when Individual stockholder have to pay tax
on dividends revelved this amounts le "double taxation," something that always riles people and Yet, after all, seems wrong. taxes Dre
contribution by citizens to support the govern- ment, not a mere levy on carned :money..
11
on
STRONG
After a show of resilence by Particularly strong were the investors on Wednesday, the higher-calibre space electronics implications of the new bout of and national defence lasues Austerity went home
hard on along with steels, rails, utilities Thursday when stocks plummet and a host of miscellaneous ed Heross the board slashing beneficiaries of stepped up gov- millions of pounds from values. ernment spending.
The market steadied again on Friday when selling Bizzled out and trading withered. Some small buying of blue chips pro. duced gains for some of then on the day.
Thursday was the black day, The Financial Times Index dipped 8.7 points and no sector escaped the plunge, but dealers marking down share values rather than any selling spate was the cause of the plunge.
COMMON MARKET
The market closed the week looking battered, Now che question of whether or not Bri- thin will decide negotiate the Commion Market countries, to find terms of cory that safeguard her special in- terest, overhangs the market.
There
with are people whose whole Income is in dividends and who do
work. not Obviously ther can't allowed to pay no income tax at all Just so the government
Dow Jones average of 30 in- dustrials finished at 705.13 for a week-to-week gain of 22.32, bringing the indicator to within ia huic's breadth of its all-time record closing high of 705.90. Ralls scored a galn of 4,37, closing at 139.00 while utilities post-1929 finished at a new
ย
high of 115.30 for zain of
1.40,
Volume for the period was a hefty 17,360,360 shares com. pared to 13,563,740 in the same werk of 1960.
was
the
DS
Bethlehem Steel market's active issue, rising 4 points on 200,000 shares the company monaged to pay its regular quarterly dividend despite the failure of earnings to cover the payment for the fourth consecutive quarter.
concrete floor of a giant Proton Synchrotron now being completed at Rutherford High Energy Laboratory, of the National Institute for Research in Nuclear Science, Harwell, wore periodically rogistered by a unique British measuring instrument.
The measurements in seconds be used to measure verticality of are tone second of are 5 or angles. millionths of an inch per inch Periodic measurements taken or 0,005 nim. per metre) have benuath Nimrod with the 'Taly- been taken over a period of a vel have indicated no great year on a specially sited con- change in levels of the Nimrod cryle pad in 11 subterranean foundations. chamber beneath ie Proton The main feature of the Nimrod is a large ring-shoped Synchrotron,
electro-magnet 160 tt, in dila- Synchrotrona meter and weighing 7,000 tons, The Proton huge machine bullt beneath the A pulse af protons given an ground and known as Nimrod initial acceforation of 15 MeV has been designed to acceler- in a linear accelerator is in- ate protons to an energy of jected into a vacuum altuated seven thousand milion electron between the magnet poles, and volts (7 GeV).
the protons are forced by the magnetic told into a circular The instrument used to men- orbit in which they receive an sure the floor level is an elec-acceleration from a radio-fre- tronie level indicator consist-
quency electric field once In ing of a pendulum co-operating every revolution. They are with transducers
which pro- either extracted from The vide an electrical displacement
bombard Internal targeta
ond signal. This signal is amplified Vacuum chamber, or allowed to to feed a centre-zero meter the resulting particles chan- graduated in angle and gradi neiled into an adjoining build- ent. With sultable mechanles)
Ing where they will be used adaptation, the instrumeni can
for experiments.
Numerical control
system
Equipment designed for con.
tinuous numerical control
is to be fitted to a (CON-
TIMATIC 1520) precision milling and boring machine lexhibited by the Nowall Engineering which is Company Ltd.)
to be shown at the Euro- pean Machine Tool Ex- hibition, Brussels, next September (September 3-
the no
Periodic measurements taken beneath Nimrod with "Talyvel have indicated great change in levels of the Nimrod foundations-LPS.
New closed-circuit plastics wind tunnel
A new
closed-circuit wind installed tunnel, recently in a Technical Collogo at Hatfield, near London, is thought to be the fir fabricated from laminated plastici materials. For supplementing and to allow students to carry
lectures
12). Avco was second most active,
out their own experiment i pressure plotting, and measur The system has been deve-ing forces on aircraft models,
Few commentators are look-up 24 paints more on 268,500
can avold "double 1zxation" | ing for any quick upturn and shares and trading ex-dividend. foped by an electronic engineer- it is made from a combina-
of corporate earnings.
Yet most stockholders also ore salaried workers and they feel that the double taxation of that part of their income they receive in the shape of dividends is inuch too harsh. This too creates many disputes in Com- gress and among economists.
Home-owning.
Renters
1000 13
263 2.725 340 2.00
500 2.723 111 11 TH112 Paikon Buck 7012
побут pay heavier taxes 3272 37
thm home-owners because, the 4514 1 Land... 2008 14 3674 government gives people who
2.022 2.875 25000 2.675are buying homes
Provident
ink late
1K Really
114.
HR Tran
KM 19
Yaut)
Ch. Light
·
45)
tuo 33
5004514
Income tax
2000 2.30 deductions for mortgage inter- 2.525
750 2.515 760 40, 41, 704 心吗 100 * 2011
120
A 301
JK Electric 391 32
P.O
ORIENT
HY Tel....
8315
LINES
s.s. “HIMALAYA”
Sailing for
UNITED KINGDOM
via MANILA, SINGAPORE, COLOMBO, BOMBAY,
ADEN, SUEZ, PORT SAID, MALTA, R
NAPLES & GIBRALTAR.
כאן
100 M2 130
JC030
BED SR
100 30
500 ... 383% 200 30 1500 3A1;
300 30 120 381
500 384
1204 30%
100+ 40
230030
** 40
500 39%
400 4 53 2000 54 2000 or 4
10064 1000 M
2001 54 500 54 109 45 500 201 1000 34
250 341
10055
2500H
4,000 4900 ** 4.370
11K Gas
21.00 21 20
GH
1900 4.95
Cement Dairy Tuxe Amala
43
00
7.10
100 41
13 6.201 1000 0.55
1000 or 8,30
20:15
EMBARKATION: The ship will be berthed at No. 5
Kowloon Wharf. Passengers vest 15 20
JIK Mine Pier, should embark between 9.30 a.m. and
Jiptela
Ferry 11 am. on Thursday, 3rd August, Star 1961,
Hub, Trust 7,79 7.1x1 Linton
W bring
27.x 30
City
12
45e 20000 # $C
Go M
20 24 12
240
Merno Elec.
X,T). Lane, draw,
13.70 14.40
4712 IR
· BAILS:
BAGGAGE:
The ship is expected to sail at Noon Ho on Thursday, 3rd August, 1961.
Should be went to the Hongkong & Raw cotton
Kowloon Wharf Co.'s Godown (No. 2 Gato), Canton Rond, between 8 n.m. and 5 p.m. on Tuesday, 1st August or Wednesday, 2nd August, 1961. SUBJECT TO CHANGE
Agents:
MACKINNON, MACKENZIE & CO.
OF H.K. LTD.,
P. & O. Bldg., KK.
exports
New York, July 30, Haw cufton exports by de- slimation ne reported in biles by the New York Coilun Exchange i for 1801-02 season through Juty 25:
Belia In
Cominent
Chuala
Tol. 95211/9.
Total for sgajon Bus period last year
307.390 2,808.24
est and real estate taxes. If
| you pay rent, these charges ore bidden in your rent and you can't deduc! them from your tnxable income. Some ccano- mists say the time has come to take steps to reduce the home buyers tax advantages,
Capital gains. The 1911 constitutionat amendment that created laxes on income tax authorised taxes on income only. The federn government ennnot make a capital levy
personal property tax as the states can.
experts believe investors in- stincts now will mean many will stay liquid uniti the dust settles.
The
Financial Times index ended at 306.5, a net loss of six points on the week, but still sume Ave polute above the year's low of 301,4. UPI.
Exchange rates
Business was done In the local womelat exchange market this Inurning at the following rates:——
Us, dukar (per $5)
5,797
Sterling notes (per 211 .....
15.05
Australino notos iper £1
12.30
Japanese yen (per 1001 ................
Cambodia tiel (per 100|
French now frane (per 1)
1.10
Indonesia rupiah (per 100)
340
Brazilian crtizotro iper 1001
190
Korean peso (per 1007
1.00
3,40
1.03
ar
0.58
210
B55
1.00
0.990
7.00
1.51
1.01
in
But in time it was realised that many people who made their Hving by trading securities, and or conimodities were escoping the federal in- I come tox by claiming the profils they made on this trading all were increased capital~~ not earnings therefore were no! taxable. Congress adopted a complicated system of taxes on capital gains, de- cloring certain profits made by this
kind of trading are trs effect income.
then
Britain and some other coun- tries with lux experience in income taxes never have ac cepted this theory,
of
or
hwan per 1.000) Elanira (per 1,000) Chinese JMP (per Taiwan yuen (per 103 Thai baht (per 100) Burmese kyl (per 10) Pakistan rupee (per 10) Macso pataca (per 11 Norwegian krone (par 101 Philippine peso, (për 1). Singapore Ktralis (per 1) Swfa frang (pet 11 Netherlands gullder (per 11 West German D-Mark (per 17 Cuban Peso (per 1)
NOT
'DUMPED'
1.10
Washington, July 30.
The Treasury ruled inn! Fri- day that $320,000 of
on
It was followed by Ford Up 2%, Kayser Rath up 2 rumours that it is going into the cosmetics fleld and General Motors up V.
glass
of
Ing firm to effect economies Intion of Epoxide resin, the production of simple com- cloth and resin-impregnated
and to permit the glass mat. ponents, automatic production of work- Nearly 80 ft long. The funnet pieces of complex shape, parti-was designed by the Aerodyns- Most active among the space cularly those where accuracy mies staff of the college in issues were Boeing and Lock-of-form and position associated collaboration with a firm heed up 3% and 2% respec- with a superior finish is essen- plastles constructors. Diometers tively. IBM rose 18, and ttal.
range from a minimum of t Avsét, Liton, Magnavox,
to a maximum of 4 ft. It was Motorola and Zenith more than
An official of the firm says: fabricated in sections of various "These may en.all a combina length from oz glass cloth, tion of machining operations, 2 oz.
glass mot and Epoxide such as profile milling in two resin of a type with a slight or three dimensions, co-ordin-natural
4 along with Texas Instruments up 13.
A total of 1,457 issues were
of traded during, the week. these, 807 advanced, 72 new highs, and 418 declined, 70 to new lows.--UPI.
York
New
cotton market
New York, July 30. Cottan futures remained fairly quiet this post wook with only small mixed changes predominating,
Spot prices, however, сол- inued to move higher at the. 14 spot markets and averaged 22.93 cents at the close of the period.
resilience. It Was ate milling, and hole making. thought that a harder resin Consequently, the unit is suit could craze when subjected to
nble for the manufacture of the stress the wol of a wind- master forms or templates and tunnel might have to with- die-sinking in addition to proto-sland,
small batch type work and production."
The system
The method of fabrication was to lay up' resin (gel not only pro- | coats); gloss cloth and resin- vides for continuous control of impregnated glass mat in suc- all axes simultaneously, but cessive layers on semi-circúlar can also govern a single mo- wooden formera. The 'halver' tion of any combination of the were bolled and the elreum- movements available. Thus, ferential joints' sealed with 1⁄4 with a high output potential, In. diameter rubber in a groove the type of machine equipped | pre-formed in the hanged sur- with this system gives con-† face. The longitudinal Joints siderable scope for employment were sealed with
a plastics
may be used for conven- sealing strip. tional Jig boring with position- A number of removable In- Ing under tape control; and speellan hatches 18 in. square, a central -inch It may also be employed for each having precision milling under manual square window of Peropox-A or tape control,
acrylic sheet-ara incorporated. To overcome the problem of The corner vançs were fabel- availablo cutters not being pre- | cnted from 10 SWG aluminium cisely the correct size, the slicel. The tunnel is bonded Ayslem Includes
Culler with chopped ginns fibre ond Radius
Control Epoxide resin to a 2 in. x 2 in. which enables a correction for x 1⁄4 in. angle-iron frame fitted
anti-vibration variation of cufler diameter to wit
rubber
Correction
be set into the controller, and cushion feet. Powor is provided so modifying the tool path to by a 20 h.p. squirrel caga motor ona appropriate to the particu- driving through a Heenon and controlled lar cutter in uae. In addiilon, Freude dynomatic
Purchases from CCC stocks for unrestricted un increased this control enn be wand to slip coupling having a „food- rayon sharply and were 227,630 boles make roughing cuts, employ-back circuit to maintain fan staple Obrá imported from on blds aubra!ited on July 25, |ing only one lape" for "both | rotations at a constant: fevol.— Japan In 1960 was not wold in the fost by for the purchiones roughing and finkhing-LPS. the U.S. below "air yolue" of government stocks of 1959 (dumped).
and prior cotton crop,
Government stocks of rnw
Legally defined capital gaire are taxed
The Treasury did not identity at about half the rate
earned income Uvidends. A few economists think the rates on capital gaire are too low-but most appears in think they are ton high pro- sent and that they should be reduced along with higher bracket rates on regular income in order to spur the economy to greater growin.-UFI
the exporter, if it had found he culton have been reduced had "dumped" the fibre here at a slightly over 1.5 milion bales. bellave the price below "fair value the Some observeTR
Intgo ruling might have led to lin-
increase in purchases stock will position of
from government compensatory duty. probably be reflected in an in- -UTI.
UNIT TRUSTS
Firal Hongkong Fund: $1.29 1502014 (buyer) $1.37 (seller),
Second Hongkong Fund: cents (buyer) $1.02 (salter).
Agreed merchant
rates
cream In hedging In futures around currant levels and on any further advance.
expected by Riene quarters
LPS.
NOTICE
JAPAN/PERSIAN GULF/JAPAN
CONFERENCE
The Lines in the above Conference regret
to advise shippers that owing to continued Futures, nevertheless, arc increases in operating costs it has been ftilect higher spot prices found necessary to increase freight rates by the Haw senson due to the in- crease in the minimum support approximately 10% with effect from 1st levels and large loan impound-October, 1961.
UB. Dollars Maximum Selling inga. 17-9/32 Minimuin Buying 17- 17/12 TT; 17-19/32 OD; 17311/10 Weather conditions in soMÉ
30 days; 17-10/10 60 days: 17-irections of the bell have con- 29/32 90 days.
00
Belgien Fenner
Seiling 834.
Unued to be unfavourable and
Branch Sacrétarios.
liave caused borne appréhension Hong Kong, 31st July, 1961,
Maximum in mili nieoles avar sŭppilas for
ile new. se8800/----UPI
E
1