European Stars And Stripes (Newspaper) - June 4, 1986, Darmstadt, Hesse                                Wednesday june 4, 1986 the stars and stripes Page 9. Financial news Bradley defends fax Reform proposal senator Calls Ira deduction s loss Small Price to pay a sen. Bill 1 any such move birr in the it tort in _. Soy the basis of meter Jitu comparing tax proposals div dual retirement w thus the Fin Washington a. L Bradley d-n.j., a Leader in the Effort to overhaul the Federal income tax said tues Day that giving up individual account deductions is a Small Price to pay for significantly lower rates. I really think the need for an. Ira amendment in  Bradley a member of the finance committee said on Abc to i today show. The fact of the matter is that if you Don t have a pension plan you can continue to have an Ira. If you want to contribute Money to an Ira plan it will earn interest  loss of the Ira deduction for workers who Are eligible for company pensions is. A Small Price to pay for tax Reform that will Cut tax rates to 15 percent for four out of five people and drop the top rate to 27 percent said Bradley who has been push ing for a new tax system for three years. Bradley predicted a titanic struggle be tween the special interest and the general interest when Senate debate on the Mea sure begins wednesday. But lobbyists and legislators who want to change the Radical tax plan Are looking past the Public consideration to the less Public action that will follow in a House Senate conference com Mittee. The committee negotiators will meet mostly out of sight to draft a Compro Mise version of the legislation passed by each chamber. The House passed its version of the measure late last year. Deputy Treasury Secretary Richard , who has been carefully Shepherd ing the tax Bill on behalf of the administration said the House Senate bargaining ses Sion May be the most lobbied conference in the history of the american legislative  the Senate begins debate on the tax Bill wednesday amid much Ballyhoo about How senators whose activities on the Senate floor were being televised As of monday will stand up to the special interests and keep the measure passed by the Senate finance committee free of amendments. Sen. Bob Packwood r-ore., the finance committee chairman has been leading a series of Pep rallies for supporters of the legislation which would produce the great est change in the Federal income tax in at least 32 years. On monday Packwood told one such current Law House passed Bill Packwood plan individual tax rates i currant 15 tax rates for single people and 14 for couples filing jointly ranging from 11% to 50% Houm 4 rates of 15%, 25%, 35% and 38% Packwood 3 rates of 15%, 25% and 35% personal exemptions current $1.040 in 1985, expected to go to $1.080 in 1986 due to inflation indexing Houm $2,000 for non itemizing taxpayers $1,500 for itemizes Packwood $2,000 for income up to $100,000 Tower for higher incomes and eliminated for couples earning $200,000 or More Standard deduction current $3,670 for joint returns $2,480 for individuals or Heads of households Houm $4,400 for joint returns $2,950 for single individuals $4.200 for Heads of households Packwood not available state and local taxes i current fully deductible i Houm fully deductible Packwood eliminate deduction for sales taxes retain state and local income tax deduction for incomes less than $75,000 with reduced deductions for incomes Over $75,000 interest deductions current deductible in full House for mortgage interest on primary and secondary houses also net investment income plus $10.000 for individuals or $20,000 for couples filing joint return Packwood fully deductible for mortgage interest on a principal residence plus $5,000 of additional interest plus net investment income charitable contributions current for itemizes fully deductible for non itemizes half the donations Are deductible in 1985 and fully deductible in 1986 no write off for non itemizes after 1986 House fully deductible for itemizes contributions that total More than $100 per year would be deductible for non itemizes Packwood fully deductible for itemizes and non itemizes Chicago Tribune Grapner source Chicago Tribune news reports meeting of corporate lobbyists who support the Bill if we have some major Amend ments Early on and we beat them by a significant measure i think you la see lots of amendments  Packwood also has made a Point of say ing that 32 of the 100 senators have Given him a commitment to oppose All major amendments to the legislation. Other senators while not giving pack Wood such a commitment have said they arc sympathetic to the strategy of opposing major changes in the Senate. Anyone who offers an amendment to re store a tax break also must include a proposal for raising enough Money to pay for the change to keep the Overall Bill from adding to the budget deficit. That Means that win Ning something would mean taking some thing away from someone else. Any such move that succeeds would de stroy the basis of a working political consensus on the Senate floor Darman said. Thus the finance committee plan which would slash individual and corporate rates while eliminating or reducing numer Ous deductions and exemptions is a fragile package that could quickly unravel if any major changes Are made on the Senate floor. In addition no one wants to be seen Ashe culprit if the tax Bill Dies. Sen. Charles e. Grassly a Iowa a finance committee member who has declined to give Packwood a commitment to oppose All major amendments is concerned about the provision of the Bill that would end the deductibility of contributions for individual retirement accounts. I like Universal iras just like everybody else does Grassley said. Nonetheless he added senators will be wary of doing anything to Louse up what a once in a generation Opportunity to improve the tax  Senate majority Leader Bob Dole r-kan., who is going along with Packwood s no amendment strategy summed up the pressure building against Senate changes saying i would t want to be offering any tax  Veteran lobbyists Are not going to try to Buck such sentiment. One lobbyist with a keen interest in the measure said ruefully  the Lime the senators get through with the Bill they la get Tennis Elbow patting themselves on the  the lobbyist said that the House Senate negotiations on the Compromise will be the Best Chance for. Ining changes. That a More or less the Basic message the lobbyist said. Grassly said legislators Are expecting special interest groups to bring out their heavy artillery for the conference. For example he said what is the most sensitive part of this Bill but the one you least want to talk about publicly that s those real estate lax shelters that would end under the Senate Bill. I think lobbyists behind that Are already trying to figure out How to save that Battle until the War of the conference Grassley said. Heirs to Johnson & Johnson Fortune accept settlement new York Dpi a bitter Battle Over the Johnson & Johnson Fortune ended monday with the drug mag Nate s widow keeping More than $300 million and his six children and an oceanographic foundation winning $42.5 million and $20 million  sides agreed to the settlement just As the steamy family drama was drawing to a close in Manhattan Surro during the Long trial Over the contested will of j. Sew Ard Johnson each Side accused the other of cruelty and Reed with the children claiming Johnson s third wife Wasi scheming shrew and Barbara Johnson countering that her stepchildren were Only concerned about their father i even judge Marie Lambert said she received threats of physical violence and said it took personal courage to sit through the 15-week trial. Frustrated jurors said the settlement reached in the final hours of the trial robbed them of the Chance to decide whether to Divide up the almost $500 million wealth left to mrs. Johnson by her . Johnson said she bore no in will toward the children who tried to wrest away her inheritance by portraying their father As a senile Man bulged by his Over Heer sad they ridiculed their father in this Way mrs. A Buu Ward Johnson or. The eldest son. Claimed the being misunderstood and taken advantage of. We made the Point we wanted to make that you Don t take advantage of a Man finishing his life a Man elderly and weak he  settlement also removed the son and others from their positions As executors of the estate and replaced them with mrs. Johnson and her attorney Nina Zagat. Under the agreement the six children will split $42.5 million and $20 million will go to Harbor Branch foundation the Florida based oceanographic foundation Johnson started in 1971. The Money amounted to $160 million before taxes. What the children foundation and mrs. Johnson did not receive went to the government in . Seward Johnson or s brother James and Sisters Jennifer Johnson and Diana Firestone As Well As Broad Way producer Marty Richards husband of Mary Lea Johnson were in the courthouse for the agreement. On Friday Lambert sent the six member jury Home before closing arguments in the Case while lawyers for both sides worked to reach an agreement. The Newark Star Ledger reported monday the widow reached a $165 million agreement Friday with Johnson s six children. Lawyers emerging from the talks last week said the settlement would give five of the six Johnson children $8.7 million each after taxes. J. Seward Johnson jr., a sculptor and the Only one of the children not totally disinherited in his father s final will was to receive slightly More than $8.7 million under the  bulk of the elder Johnson s estate Worth upward of $500 million would still go to his 49-year-old widow bar Bara Piasecka Johnson the former family Cook and chamber maid. Her share has been estimated at $350 million. Johnson disinherited All his children because he Felt he had Given them enough Johnson & Johnson Stock during his lifetime to make them financially . Johnson s lawyers rested their Case thursday but she never  husband who was 42 years older than she. Signed his last will on april 14, 1983, shortly before his death of prostate cancer at 87.known As Basia mrs. Johnson emigrated to the United states from Poland As a penniless Art student and worked in the Johnson Home before her wedding. She was married to the drug magnate for 12 years. Mrs. Johnson apparently signed a letter agreeing to give a $72 million charitable Trust to Harbor Branch although the will left the beneficiary up to  disputed Point in the trial was whether the letter was legally . Johnson had said during the trial that she would never Settle out of court because it would violate her Hus band s wishes. Her lawyers accused the Johnson siblings of using the foundation to get a Fortune their father bad not intended them to  Johnson children produced witnesses who said mrs. Johnson bullied and terrorized her elderly husband while he was dying of prostate cancer. The witnesses included servants who had worked at Jasna Polana. The Johnsons lavish estate in Princeton township in new Jersey. In court papers mrs. Johnson snowed the Seamer Side of her stepchildren s lives including several Messy divorces