European Stars And Stripes (Newspaper) - August 18, 1986, Darmstadt, Hesse                                Monday August 18,198e the stars and stripes Page 9 key Points of Compromise tax Bill Washington a the Compromise lax Over haul Bill Pul together by congressional negotiators sat urday night would affect every taxpayer in the count Ryas Well As Many individuals and corporations who have been Able to legally Dodge the internal Revenue serv ice. It would Cut taxes for most people but raise them for several million others. About 13 million couples and individuals would find it to their advantage to Slop itemizing deductions and thus the plan would mean simplification for them. Olsen would find new complexities Here arc some key provisions rates in 1988. The present 15 taxable brackets Tor tragic people 14 for couples tiling a joint return would be compressed into to Basic brackets and the present rates ranging from 11 cram to 50 percent would be changed to 13 percent for three quarters of taxpayer and 28 percent for most of the others. Bui mile people with taxable income after exemptions no deductions above about 141,000 and couple above $71,900 would pay 34 percent on part of their earnings. For 1987 Only the top Rale would be 38.5percent, for joint returns the 15-Jfercent rate would apply to taxable income up to $29,730, when the 28-percent rate would trigger exemptions now $1,080 for each taxpayer spouse and dependent personal exemption would be raised to $1.900 in 1987, $1,950 in 1988 and and$2,000 adjusted annually for inflation in 1989. Upper income people would gradually lose their exemptions As earnings Rise. Extra exemptions for the Blind and elderly would end. Standard deductions this Benefit for those who do not itemize deduction now $2,480 for singles and $3,670 for joint returns would be in creased next year by the rate of this year s inflation and in 988 would go to $3,000 and 15,000. The deduction for Heads of households would Rise to $4.400 in 1988 for married individuals filing separately to$2,500. A Blind or elderly single person would get an additional $7 to deduction or if married an extra$500, starting Jan 1,1987. Two earner couples the special marriage penalty deduction for two earner couples Worth up to $3,000 a year would end at the end of 1986.retirement accounts a worker who is Eli Gible for a company pension or whose spouse is Eligi ble and earns up to s25.000 $40,000 for a couple could continue deducting up to $2,000 a year for a individual retirement account. The deduction would drop As income rises above those Levels and would Endal $35,000 fora single and $90,000 for a couple. Those not qualifying fora deductible Ira could Deposit up to$2,000 a year and the interest would continue tax free until withdrawn. Workers not eligible for company pensions could have a deductible 12,000-a-Yesr Ira regardless of income. Interest mortgage interest on one or two Home would continue fully deductible but when the Hill is fully phased in no deduction would be permitted for consumer interest such As credit cards and car Loans in general interest charges for refinancing a mortgage could be deducted Only if the proceeds were used for Home improvement education or medical expenses. State and local taxes income and prop erty taxes would remain fully deductible. The sales lax deduction would end. Miscellaneous deductions including Union dues and other employee business expenses lax rectum preparation fees and Job related publications could be written off Only above a 2-percent floor. Spe Cial rules could affect gamblers Acton and the Handi capped. Medical expenses Only those exceeding 7.5percent of adjusted Gross income could be deducted the present floor is 5 percent. Fringe benefits full tax exclusions would re main Tor employer paid health insurance the first $50,000 of group life insurance and $5,000 for deat Benefit. For the first time Farmers and other self employed people could deduct 25 percent of the Cost of health insurance. Earned-1ncome credit maximum Benefito this break for working poor families with children would be raised o 1800 it now is $550effective in1988. Part of the Benefit would be available until in come reaches $ 17,000. Contributions no change in deduction for charitable Gifu by Ilc mixers but the write off for Aon itemizes would end. Credit for political contribution would be repealed. Unemployment compensation full taxed. Capital gains taxed As Ordinary income for individuals and corporations ending a longtime preference for such gains which Are profits from Sale of assets held More than six months. Income averaging repealed. Pensions most workers pensions would have Tobe vested guaranteed after five years on the Job and employers ability to reduce pensions because of social Security coverage would be limited. The $30,000 annual Timil on wages a worker May forgo if deposited by the employer in a lax deferred pension known As a 401 Kyj plan would be Cut to $7.000. Minors All persons 5 years and older who Are claimed As a dependent would have to have a social Security number it would have to be lined an the Parent s tax return. All but $1,000 of the unearned income such As interest of a child under 14 would be taxed at the Parent s Rale if the income is from prop erty received from the Parent. Tax advantages of Clif Ford trusts in which properly is turned Over to a child for More than 10 years would end. Life insurance increase in value of Ordinary life insurance would remain tax free. Minimum tax this special Levy on High income investors and corporations Hal use so Many deductions and credits that they pay Little or no lax would be toughened considerably and applied at a 20-Pcrccni rate. Interest on newly acquired municipal Bonds is sued for non government projects would be subject .10 he tax for the first Lime. Meals and entertainment deductions for business related meals and entertain Cut including sports tickets now fully deductible would be Cut to 80 percent of the Cost. Dividends the $ 100-per-person $200-per-Cou ple exclusion for dividends received would end investment credit this major investment incentive would be repealed As of Jan. 1, 1986. Depreciation reduced slightly from present Law. Generally the Benefit would drop for buildings while rising for machinery. Corporate rates top rate of 46 percent would drop to 34 percent with lower Rales for Small business. Tax shelters it would be More difficult to shield wages and fees from taxes by using deductions from investments built around limited partnerships especially in real estate. Deductions arising from most investments including real estate would be limited to amount risked. Losses from partnership investments could not offset wages and other income a person actively involved in managing rental real estate cout offset up to $25,000 a year. Oil and Gas the Industry generally would be exempt from a new anti shelter Rule affecting losses from passive investments and would retain most of the Benefit associated with the depletion allowance and the Quick write off of certain drilling costs. Timber incentives for reforestation and Quick deduction of expenses in planting and maintaining seed Lings would be retained but the Industry would feel the loss of capital gains preferences More than most. Bonds slates cities and counties would retain the right to Issue tax exempt Bonds for Public projects but use of Bonds for private projects such As sports and parking facilities would be restricted. Banks larger institutions would lose their special deduction for loan loss reserves those with big portfolios of shaky Loans would get special dispensation. Farming Quick write off of soil and water conservation and land Clearing expenditures would be re pealed Farmers ability to deduct Cost of feed fertilizer and other supplies before used would be limited. Mining favourable treatment of depletion and of costs of exploration and development would be retained but capital gains preference for Royalty income would be lost. 6 climbers freeze to death on Himalayan Peak this a 1985 photo of climber Julie Tullis who died after reaching the Summit of Khz. Islamabad Pakistan a six Mountain climbers including two women froze to death on k2, the world s second highest Peak after a Bliz Zard trapped them for More than a week a survivor said sunday. Kurt  an austrian Mountaineer and filmmaker told the associated press in a Telephone interview from the Northern town of Sardu Hal two Austri an two britons and two pales died this month on 28,250-foot k2, the world s Sec Ond highest Peak after my Everest. It was a Miracle that eight of us happened to be together and went into the amp trying to protect ourselves from the Snow storm Liemberger said. Liemberger and fellow austrian Willi Bauer were the Only survivors from the eight mountaineers trapped in a make shift Camp near the Summit of k2, he said. Both suffered severe frostbite Anddie Berger was obviously deeply upset As he gave the following account the eight belonged to austrian British and polish expeditions that were climbing or descending Khz italian and South korean expeditions were also assaulting the Peak in the for North of Pakistan near the chinese and Indian Borders. The eight mountaineers were near each other and close to the Summit when a blizzard hit on aug. 7. They look ref Uge in a makeshift Camp to try to outlast the storm. But the blizzard lasted More than a week and the mountaineers ran out of food becoming weak and ill from the cold and the Lack of oxygen in the High Altitude air. Five people died in the Camp. The were Julie Tullis and Alan Rouse of Britain austrian Kannes Wieser 30 and Alfred Nimitz or 43, and Wojtek Broz of Poland Demberg said. Liemberger Bauer and a second pol ish climber Dohr Osawa Mindowicz managed to get out of the Camp after about seven Days and Start Down the Mountain. Liemberger said he last saw Mindowicz at about 19,800 feet when hand Bauer were descending. The British embassy in Islamabad confirmed Tullis death but said it  determine what happened to Rouse a renowned Mountaineer. Polish and austrian embassy officials in Islamabad said they had received the same reports but had been unable to confirm the deaths. Polish and austrian diplomats said they were still trying to determine what had happened to other members of their countries expeditions but they were not sure How Many people had been in each group. Dick Norger and Bauer reached a base Camp where South korean mountaineers cared for them until a pakistani military helicopter flew them to Sardu austrian diplomats said