European Stars And Stripes (Newspaper) - February 16, 1986, Darmstadt, Hesse                                Sunday february 16, 1886 the stars and stripes Page 19 business news study says tax Breaks did t create jobs Washington a a labor backed study says dozens of the nation s most profitable corporations have wiped out their Federal tax liabilities while using tax Breaks to boost executive pay and dividend rather than create jobs Over the 1981-84 period. There was absolutely no correlation Between tax incentives and improved capital spending or Job creation according to the Survey re leased by citizens for tax Justice. Rather than use $120 billion a year in Federal tax incentives to launch a promised Boom in investment the study said much of corporate America took the Money and. Spent it on virtually everything else the could think of.". Congress and president Reagan in 1981 approved big increases in incentives for business investment. Since that time much of the increase has been taken Back and Congress and Reagan have agreed that More trimming is needed. But Reagan is demanding that the Senate not Cut Back As deeply As the House did last december in passing a big tax overhaul Bill. The study based mainly on corporate reports to stockholders concluded that 44of the nation s biggest profitable firms used investment designed tax Breaks to avoid paying any Federal income tax in the 1981 investor s guide 84 period while their employee Rolls and capital investment actually dropped. At the same time said the report 43 companies that paid at least one third of their profits in Federal taxes increased in vestment by 21 percent and boosted their employment Rolls by 4  riverboat Gamble with throwing Money at corporations simply has not pan Ned out said Robert s. Mcintyre director of Federal tax policy at citizens for tax Justice a lobbying organization financed by unions and churches. Corporate tax incentives have been a huge failure at stimulating More investment or  the Treasury department declined com ment on the study. The . Chamber of Commerce said it would have no comment until analysing the report. Harold Carr the Public affairs director for Boeing co., did not dispute the report s finding that the firm made $2.1 billion in profits during the four years paid no Feder Al income tax and received refunds of 1285 million. Boeing investments declined 38 percent employment dropped 18 percent and dividends Rose i percent the study said. However Carr said Boeing spent $2.4 billion on research and development during the period when we went through the final stages of developing manufacturing by William a. Doyle. In june 1952, 1 exchanged to the series e savings Bonds i hid purchased for series h Bonds. When Are the h Bonds i received due to nature a. Bad news those particular h Bonds already have matured and no longer pay interest. To make matters worse you owe income tax. H Bonds issued from june 19s2 through january 1957 reach final maturity in 29 years eight months. So yours matured in february 1982. H Bonds pay interest by Check every six months until they reach maturity. Sicly you must be aware that you no longer Are receiving semiannual checks for interest on those old h Bonds. Also with your last or next to last interest Check you received a notice saying when those Bonds were due to mature. You should take those old h Bonds to your Bank or other savings Bond paying agent which will Send the Bonds to a Federal Reserve Bank for redemption. After the Nec Essary paperwork is completed those Bonds will be redeemed and you will receive a Check for their full face Evalue. Now the kicker. When you exchanged e Bonds Tor h Bonds you postponed paying Federal income tax on the interest that had accumulated on the e Bonds. But when the h Bonds reached final maturity you were required to pay Federal income tax on thai old e Bond interest. To stay Square with the internal Revenue service you la have to file an amended Federal income tax return form 1040x for 1982, report that old e Bond interest and pay whatever tax is due. Q. When do h Bonds issued after january 1957 mature and when do the newer he Bonds mature a. H Bonds issued from february 1957 through december 1979 reach final maturity exactly 30 years after their Issue dates. All those Bonds were issued with 10-year original maturities and have been Given two 10-year extended maturities. He Bonds which have been issued since january 1980, have 10-year maturities. No extended maturities have been promised on has. The official government line from savings Bond literature is As follows As the he Bonds begin to approach maturity the Secretary of the Treasury will determine whether an Extension is  Don t be surprised if no extended maturities Are granted to has. Those Bonds can be obtained Only Exchange for e and be Bonds and us. Savings notes All of which have accumulated tax deferred interest. By not extending maturities on has the Federal government will collect income tax on All that defer interest. That s a tempting thought for the irs. Q. B there saw indication that series be sating Bonds which Hare been issued since a. No. The Treasury department remains mum about that. Q. I bought series e Sarics Bonds from 1952 until 1978. B 1985, i had then timed Tom oses to for nun my name or a rebate s some. The reissue Date of St Kwh the 1�e2ivl5, when do these Bonds mature a you re mistaken about the reissue Date. When a savings Bond is reissued the Issue Date on the new Bond is the same As the Issue Date on the old Bond. In the upper right Corner on both the front and Back of each Bond you la see Issue hints Theli St Day of month year directly below that is the issuing agents stamp. Which you evidently thought was the Renaue Date. Depending on theiral maturities a 1941-Apni 1952, 40 years Date which a Elemay los january 1957, 39 years. 8 months february 1957-May 1959. 38 years 11 months Juhe 19s7.november 1965, 37 years. 9 months december los May 969, 27yea?s?june 1969-november 1973, 25 years. 10 months december 1973-june 1980, 25 Vest the complicated maturity schedule results from changes in interest rates and original maturities Over the years and the fact that All e Bonds have been Given extended testing and certification of three new com Mercial transports the 767, 757 and 737 300." Boeing employment is about 3,000 above the figure at the end of 1981, he said. The study is a follow up to one done by citizens for tax Justice last August. It surveyed 275 of the nation s biggest and most profitable corporations and found 50 had paid no Federal income tax from 1981 to 1984. In at least one of the four years 129 used tax Breaks to not Only wipe out their tax liability but Rucci rebates of past taxes paid. Although the compan. May have paid no Federal income tax they did not avoid the tax collector altogether. For example they paid Federal social Security taxes on workers wages most paid state and local taxes and Many paid taxes to foreign coun tries which they can take into account when they calculate . Taxes. And if a company had a string of losing years before 1981, it could carry Over some of those losses into a later year and use them to reduce its taxes in that  new study of 259 profitable firms concluded that forty four companies with pre tax profits totalling $53.6 billion paid no Federal income tax during the four Yean and received $2.1 billion in rebates of tax paid in prior years. They reduced investment inner plants and equipment by 4 percent and Cut the number of employees by 6  increased dividends to stockholders by 22 percent and raised the pay of their chief executives by 54 percent. Included in this group were companies with the largest total tax refunds Boeing Dow chemical co., itt and Tenn eco. The 43 highest taxed companies in the Survey those paying at least one third of their profits in Federal income taxes in creased investment by 21 percent and their workforce by 4 percent. This group was led by vfcorp., whirl Pool corp., . Reynolds industries Kel Logg co., Procter & Gamble Briggs & Stratton. Cooper tire & rubber co. And Campbell soup co. Eleven of the 259 firms surveyed acquired other companies last year at a Cost of $40 billion considerably More than they invested in plants and equipment during the three previous years. They reduced capital spending by 17 percent Between. 1981 and 1984 while increasing dividends by 56 per cent and executive pay by almost 100 per cent. Analysts say Texas faces Job loss As Oil prices drop Dallas up1 stabilization of Oil prices at an average of $15 a barrel a de Cline of $10 from 1985, would Cost Texas 250,000 jobs Over the next three to five years says a new study. The study was conducted for sen. Lloyd Bentsen a Texas by Bernard Weinstein and Harold Gross of the Center for enter prise at Southern methodist University s Edwin l. Cox school of business. The analysis indicated that Job losses resulting from the latest round of Oil Price cuts Are Likely to involve White Collar employees and Small business failures As Well As the traditional layoffs of Blue Collar workers. Atlantic Richfield co. Cited falling prices in its decision in late january to eliminate 1,000 jobs at two North Texas subsidiaries. That was the largest White Collar Oil Indus try Layoff to Date. The just announced layoffs by area in Dallas May be first of Many on the administrative Side of the Oil and Gas business the study suggests. The report also foresees non Industrial sectors experiencing underemployment or layoffs As they Are forced to adapt to the More subdued level of economic  financial  another Are expected to be hit. For those institutions heavily exposed in Stock pulse Corr Tomlim Fruzy pm m Nosb in walk met Acorn by Vhunt Stock div vol Coth wrap eyed Jyh maj to Imjoo 4t s 3-34 14-0 1-7 Fokd 1,542.100 52  a 4j  7455,500 1114 u7 150 u to in Moo Itu 444 u 104 ism t,nm69 144u 1047 Isa u maturities. King pm Kurtt column la Dot Whf come will Ltd a ?,.ccolumn. You pm Wollt to him in new of to saw and Sortow Apo Mil. ? l"f80 Ameh Lut Moo us. 3js 11.0 Ujj Sam Nib 1470,400 met. 1.17 24,0 40 it Nimi 1435,100 my 04 Suas Nosb con Volb unit it of Moslock com of m Etna be you chum 1mv 10m 113.70 13.0 a Macon 9 4j4 i104j Howdy up. � 7nhosvsua in flu As cd Iii us Soj 10.17 31.0 0.1 am Tor 123 4v4 401 31.0 04so�ne 20h 3w 04431.0 04 Rosmah met m in 14.0 u Jyh Jinx 41 3� 3j4 144 2.7 114 in 10.94 10,0 10all Energy non performing assets Are Likely Torise and earnings Likely to fall. Large losses should not come As a Surprise nor should the continual downgrading of Many institutions debt rating the study states. Adding to the dilemma the analysis finds will be a fiscal crisis in state govern ment hindered by the inability of its tax Structure to respond to the dramatic changes in the Economy. With the Texas comptroller currently projecting a Revenue shortfall of $2 billion to $3 billion for the fiscal 1988-89 biennium taxing and spending issues Are sure to dominate the next legislative session the report says. Generally the researchers said each Dol Lar decrease in the yearly average Oil prices costs Texas 25,000 jobs $3 billion in Gross state output and $100 million in state and local tax Revenue. Since Early december Oil on the spot an futures markets has nosedive by More than $10 a barrel to the lowest level since the opening stages of the iranian revolution nearly 1979. The study said a yearly average Oil Price stabilized at approximately $20 a barrel would Cost Texas roughly 25,000 jobs while an s18 Price would eliminate 175,000 jobs and $15 Oil would leave 250,000 unemployed Over three to five years. Aim a Minim my and Ftp in a rim Slock div vol of Meinl be  1,027.200 m i in Ptg 194,40045-16 0.25 17.0 you rear 449,400 us 0.99 17j u so trios 404.900 141 041 9x0 0.7 an Fem 3m.1w is  i com Pilro 347,100 it a Nolb 319400 191 of am ill 310,400 7 0.52 13.0 Fortay n of 749400  241400 4tt Oji 4.0 aim ctn Tom Lowit my Dunn Slock Oom Cut m Emi be old Elton Rendl 470 11v4s 0.04,014.0 bum 35v 4tt 447 u u fort cd 1h 4v4 10.1 Hal Nykl 21 f Ivi 1.70 12.0 0.5 a Occam 34u 4 2v 2.52 14.0 4.0crowncnt a Lett 21 1.71 11.0 cell Idohl sow in 7.73 u a Lloro 3su 2 3j1 11.0 04put 14v 1ft mov mib Svi 1wp-e Oriel to Mai uni Ralto pm dmm Dvid a it set