European Stars And Stripes (Newspaper) - November 22, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday november 22,1967 investor s guide by Bill Doyle q. We Are a retired couple with relatively modest income including dividends from Stock of the company for which 1 worked. We now pay nominal income tax. The Slock is being bought Back by the company and we will hire to surrender our shares for cub. This will bring is quite a wind full As the Stock s Price has gone Way a buy Back was announced. But this will also jump our income tax Doyle oat of tight. How does inc new 28 percent capital gains tax work a. The difference belv.? your basis the Price yen Laid for the Slock and the Arm Tinl you receive when you sell will be your profit on your 1987 Ioime re turn you will add that profit a capital gain to your other tax Able income. For 1987, there Are five Federal income lax bracken11,15,28,35 and 38.5 percent. If your total in Able income puts you in the i i 15 or 28 percent tax bracket that s the tax bite you will pay on All your taxable income including your capital gain. However if your total taxable in come lifts you into the 33 or 38,5 percent bracket you la pay 28 per cent tax on your capital gains tax. Fora married couple filing a joint i9s7 return the 28 Perchem bracket applies to taxable income from 128,001 to $45,000. Your taxable income of course is lie amount on which you actually pay tax after taking the exemption and deductions to which you an emitted. Q. Hiring realized urge capital gains from the Sale of stocks my wife and i will Tan orach higher income this year than pm before. I wonder if there is any Protection again a one time jump in income tax. I there a. Nope. As the old song goes there was but there s not any you could have used income averaging to save tax dollars if your taxable income in 1986 was at least 40 percent higher than your average taxable income for the three previous years. But the tax Reform act of 1986 eliminated income averaging effective 1987. Q. Yon wrote that under the new us Law there will be two official Federal income tax brackets is and 28 percent Berj Naploi in 1988. Yon explained that Alsot 5 percent surtax on certain Levels of taxable income. A a result some income including capital gains frill be taxed at 33 percent no Nutter what the Goren ment Call it i con Sider that a third us bracket. How ranch taxable income must i Hare in 1988 to pay the 5 percent surtax a. That depends on your filing status. The 5 percent surtax will be levied on taxable income of 71,900 to $149,250 for married couples filing joint returns and for qualify ing surviving spouses from j6i.650 to 1123,790 for Heads of household from 143,110 to $89,560 for single individuals from s35.950 to ill 3,300 for mar ried people filing separate returns. Above these Levels the Federal income lax bile Wilt revert to 28 percent. Business news prices drop 21.38 for week new York up the Stock mar Ket spent the past week pleading with budget negotiators in Washington to reach an agreement and when it finally came Wall Street was so worn out its last session was a titling finale it ended mixed. The Dow Jones Industrial average which Rose 18.24 on Friday fell 21.38 Point on the week to close at 1939.63. Despite the Friday Advance declines beat a Vaiti a 823-71 i Virtu log inc l,?�4 issues traded during the session. After a we Klong wait for Washington to produce an Accord the Market was Given the final word in the week s last hour of trading when president Reagan announced that a two year deficit Cut Ting plan had been reached. The pact described by Reagan As credible and reliable would Cut the deficit by about $30 billion this fiscal year and s4s billion next year. Prior to the president announce ment however there was Strong Evi Dence that Market participants had anticipated the Accord and were not impressed. Wall Street has Given up wailing for anyone in Washington to get Over the Hump said Thorn Brown chairman of the investment policy committee at Butcher & Singer inc. In Philadelphia. It s like waiting to win the state lot in the proposed agreement there will be billions of dollars of tax increases Brown said and lax increases Are not Stock pulse by in had Irwi i c 1m7 hts Cem Politt mom ache of Odum Sec Eldh due Yubonn at to sol. Ism Exxon Ohio do renal Voi cub euro pc old 4,243.200 1 11.34.018.200 11 is. So 00 10.0 3, a 2.910,900 20 2,797,000 m i 3,427.400 117 2.441.000 iv2,221,100 us 2.1s4.300 44-t. 1.007,600 43h toc cd Neth Skya 0,47 12 2 to 100 of 753 Ico 3.7 1.04 1.0 3 m 12.0 2.62 17.0 2.9 4.02 8.0 7.1 Toet Cho Onmi be he Tutu amp a Tok 14 Offik 310k 67 9s /. 45 04 q7h 12h 7 122.04 130 1.4 a 1140 210 0.1 17.29 0.0 1.9 1.45 97.0 1.1 6.10 9.0 42 0.0r.oe 2,0 380 16.0 2.9 2.u 340 0,7 of. U com Pitt. My Actton by vote fund p from Page 19 bpm Cip Sun Coo Gib 14.941939 10 �17 12 12.2 1i.hi44ois.io is 24 im4 . Ij84nl 11.47 . 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We went to the show it flopped and left on thursday the Dow plunged 43.77 Poi Iii scr the ass far cried to suffer through a Parade of bad news sur rounding inc plan specifically word that republicans had raised strenuous objections. Sen. Bob Tackwood r-ore., said sen ate republicans signalled overwhelm ing opposition to the package under Dis Cussion because they think some of the savings Are House Republican Leader Robert Michel of Illinois described Many of his gop colleagues As cantankerous id opposing the plan despite efforts by Treasury Secretary James Baker and the White House to win their support. Even democrats sent signals to the Market not to expect too much. What will emerge will not be heroic neither Wilt it be painless House speaker Jim Wright a teis told reporters thursday. Reagan aware of the criticism from Wall Street appeared tired of the Fine pointing from the financial markets and. White refusing to offer any direct rebuttal of his own Friday said they have some Sokk do by time Loo it til Wingle tour pm 9 to Tell air Ripon ecu bar Mcxie i run Looma go of Voi cub Jim be to 1,0440 27 t 1 87 14.0 u 402.mo m 10k u 332.709 10k do 2s.o10. M 214,700 3bu205.000 us ios.300 in 203.300 4� 202,100 30t. Sucka in a Lou Ann i can Poilu Luth no it Ivan Mouta Uip m Bourn i be a i t c4on any harm vm78v. 31 101 4 j Tistl 200 0.7 10.0 17 2.9 and b1h 2k70u a by 2h 2 a ii6s t in Lite 4 1s 291% nolo 0.15 25,02.37 12.0 Foj Unpi Umi ii Moln maj dam. Of Raj Tunc Toff Fayn on Ftp in flan tits sgt Imu fid Seq i govt 10.01 10.00 17.11 1744 9,07 19.s7 19,77 17,u lft.12iz-Mita 100911.03 14 04 1100 my 111 ii 0312 of 1334hl 901kl ii uni 1041h.l 9.&b Al 11 57 no 9. id4qnl 4.41 14 s7 h49nl 3i.47k.lkwwl. H 07 of 0,15 pm no. 320 512 i Mil Catalaa of Jinan us guru one car t the Tust 1170im a 407 Sto 1229 13 o in 4.u 11u 10.34 7.7 til 8.m 0.79 4u Soi 401 104 1 so 100 i0t4 Coo 4 14.13 no 7-j4 my 974m.l 1n.l iwh1. 79n.l 7 Hill 934h.l 10ii Al Sttne i&07n. Kbtnlis79nl i 01 . 1bnl i 11 my i 10 no i 40n.u 1 30m.l ithl1 3jhl 1 14 no Del 2 Fly no 9�nl ii no things to straighten out Congress and the White House had an Opportunity in the last couple of weeks to demonstrate to this country and the world that they had control of the situation and they were not playing poli tics said Edward shop torn partner in charge equities at Mabon Nugent & co. The politicians missed a great Opportunity to be Shofkom said the lower volume of the past wet tails you thai Ink Lorsan by and Large uncontrolled to putting Money into the Broad Market indicators also declined on the week. The new York Slock Exchange composite Index Tell 2.04 to 135.56. Standard & poor s Joo Stock Index dropped 3.64 to 242.00. Dottl Inird issues outnumbered Advance ers 1,285-671 among 2.170 issues traded. Big Board volume totalled 817,248,300, compared with 874,295,982 the previous week and 860,596,200 a year ago. On the trading floor get was the most Active nose usted Issue on the week up 2 to 36 a. Niagara Mohawk followed Down 1h to i2t at to was third Down 1v, to 28 a. Ism lost 3% to 117%. Digital equip ment fell 8 to 124 a. Among other Blue chips american express was Down 1 to 24, general electric was off to 4sw, Kodak fell i to 47 v4, scan dropped h to 35 w and us Wai Down 1h to 27. The biggest gainer on the week was Tel Edyne. Up 18 to 283 u. The hardest hit was lbs Down ii to to 12k. Among the other Active Issue consolidated Edison was off Tilo 43vallied signal slipped 4 to 30h, Potomac elec tric Tell 1 Otto 21 Uniss dropped 2% to 3d and Union Carbide was unchanged la the Auto sector. Ford gained m to 75 i and Chrysler fell in to 23. The american Slock Exchange Index fell 8.86 to 242.58 while the National association of securities dealers inde of Over the counter stocks declined 3.64 to 242.00. On the amex losing issues beat win ners � 11-284 among 1,025 issues traded. Volume totalled i5.580,135 shares com pared with 55,316,915 traded a week ear Lier and 56,029,805 traded in the same week a year ago. Trias air led the amex actives off us 0 1 inc cd girl cd Ontl us Boop Al do to Chi cd t. De bad i a cd i1.90nl hoi Uraj 017 159 in 14 0315 j3 Sun i4210k 13 u 1464 1ij7hl. Lod Lull. 14 i my Kcf Kcf Noma in s917.44 15-751057 1i, Manl. 13o12h.l. 1�01 he. 74. Koku 922 no ooh � 01 1b40nl 1150nl Manl m42n.l 074nl 21 03 no � 71 a3 17 he 94jn.l Hihi 703nl 1034 no. G i7nl 90inl 1d93nl i by win is tvs a Sam �5" Asp wait a Hon 001n.l 10b3n.l. Uts of life wife few or. 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