European Stars And Stripes (Newspaper) - February 21, 1988, Darmstadt, Hesse Page 16 business news the stars and stripes sunday february 21.1988 Buck s expected Rise did t come. ._., ,.,n-,Tmi in a Frankfurt Bank added Dollar Worth . West German Mark holidays on Boih sides of the Atlantic and disappoint ing news on Hie japanese Trade surplus teamed up to keep the Dollar fall in the part week a Market performance on British dealer termed absolutely of the holidays things got off to a slow Start and then fizzled out altogether said one Cut Man Dollar had been expected to improve last week and a staff economist Al a Frankfurt Bank added even Central Banks have to make a profit in the event of some kind of intervention they can l just keep throwing currency around forever. Still speculators can get burned when government intervene however Small the amounts the Central Banks use so intervention tends to discourage betting on a falling Dollar. The threat of intervention also a served to control the Market s lop end keeping Snider from pushing the Dollar Loo High. If the Dollar continues to go up gently 1 think the Central Banks will Wail and see an italian trader id a. Air Hof Baw Martl. Marks with Deari think you la is some by . Kolnicki in the Wake of a feb. 12 report from the Commerce department that showed to " Lessli decline. That jump in the Dollar failed to Mal Emiliie. However once traders became aware of statistics on the japanese Trade surplus released in Tokyo last those figures indicated that while the japanese Trade surplus continued to fall for � ninth straight month to s3 07 billion improvement appears to be stowing. Economists and traders who about 12,5 billion viewed the report As proof that further improvement in the us. Current account Defi Cit also May be limited. So it s Back to Wail and Sec on no month s Trade figures a currency dear in Frankfurt said. That inca a lot of Short term positions that wont realty move the Dollar one Way or another. That s stability for you boredom for us. One of the strongest factors in the dollars stable Tion Friday. If it surge indications that it i Central bunk the United states does t want to let the Market undo the Success n t had in lowering the Dollar and bringing Down its Trade deficit. Some analysis still see a further erosion of the Dol Lar but Many of them Are less bearish than they were during last year s Steep decline when predictions of a Dollar about West were commonplace. Additionally there Are a growing num Ber of traders who see the Dollar gaming 10 percent or More by the end of the year. Others however note that foreign Banks and Busi Nesses having quenched their thirst for american Busi Ness acquisition i May soon begin move would cause the Buck to dip farther against foreign currencies As dollars flood the Many economists and currency dealers re main Uncertain Aboul where exactly the Dollar should be fixed there Are indications that the is. Currency is now undervalued at least when compared to major european currencies. A so called Market Basket study year bythe organization for economic cooperation and development in France showed that the mixture a goods and services that Cost 1100 in the United states Cost s143 in Japan 1134 in West Germany si47 i Denmark and $122 in France. Some economists take this As a sign that the Dollar Isal least 20 percent under its True purchasing value. Siam performance continues to be the threat of Miler Votion be buying and Selling of huge blocks of dollars Orother currencies by the Central Banks g-7, the group of seven Western industrialized traders have mixed feelings about such intervention noting that it Likely would Noi work for Long i the markets insisted on pushing the other Way. They argue that an estimated sl5d billion tumbles through Fiche markets every Day. And by comparison Central Bank intervention in support of the Dollar last Decem Ber described As massive in most news reports represented Only Aboul j4 can slow a trend or accelerate one a London trader said. They can t really rum the Market around if it has decided logo one Way or another. 2.90 2.70 2.50 monthly Trade deficit in billions of dollars 1986 1986 1987 1985 1986 1987 if it has decided to go one Way or another. Federal income fax return different this year. Athe old Law had 15 rates for income an gang this lax or from staff and wire reports this is the year americans have Tor Eleam the Art of filling out a Federal income lax return. If you filed last year you will have Todo some things differently this year. If you have never filed this May be you year to Start. And if your income is Low enough you May no longer be required10 file at All. Thanks to the 1986 tax overhaul there Are some new forms and there Are some old forms that look old Standard deduction replaced " itemize. Unfortunately the Only Way to find out for sure is to total up your deductions and see whether they Are Large than the Standard deduction. One other change in this year s tax Laws May come As a disappointment to military families who moved in 1987and thought they could claim those expenses. It the past had to reach into their pockets to pay the difference Uncle Sam would pay could claim the full extra expense As a deduction. Now those expenses no Mailer what they amount to must be itemized and included in the same Oil Noii Umu Buu a. A o item Nea o in Cipun i it for a few years by the to bracket category with such deductions As Char aunt is Back and by Ger. Some Ftp fable contributions and mortgage a amount a Digger som is verite deductions have been repealed and others have been reduced. There Isan entirely new set of provisions affecting children. The personal exemption a been Al most doubled. Tax Rales have been Cut significantly for most people although that will nuke link difference in How a Relura b completed. Some things never change. The Mai individual m form. 1040, it still Blue the Short form 1040a is Mill pm an the simple 1040ez is still Green. The Fil ing deadline is still Panl 15. American living overseas still Quality for a two month filing Extension. But if you wait Loo Long to file you refund will be delayed. Because of changes in deductions you May be among several million people who will no longer find it profitable to Irwin a Veteran tax preparer for pfc Block in like Bealh England estimates thai twice As Many run diary families will be using the simpler 1040a_ As opposed to the 1040 this year because Many families used the More de Uiko 1040 solely because of the moving expense deduction. That considered he expect to see fewer Cus Ruers because super forms mean people will nol need his the other hand he believes the new w-4 procedures have caused so Jib problems. Some people do p3more or jetting less Back beams they misread something in the four pages Oli junctions. Here Are other highlights of the new Law the most thorough overhaul since the income tax Law was a acted m 1913 rate the of la had 15 rates for single people and 14 for joint returns they railed from 11 Perchem to to per cent. Fofi neome earned in 1987 there were five ranging from ii percent lo3b.s percent. Exemption you la be Able a exempt bum taxation ,900 of your in come plus an equal amount for you spouse and each dependent. That is up ,osoforl986. Standard deduction if you Don itemize reduce your income subject to nation by $2.540 if single or head of household ,7# if filing a joint return or s 1,880 if married filing separately. If you Are at least 6s or Blind you Are allowed a Standard deduction of $j,0 if single $5,150 if Bead of houschou.15,600 if married filing jointly or $3,100 if married and tiling separately. Taxpayers who Are both elderly an mind receive an additional deduction based on their marriage status. Thur did Aetha this Specia Benefit for couples has been repealed. Ira the Day of deductible individual retirement accounts for everybody Are Over. Now your deduction will be reduced or eliminated altogether if you Are covered by a company pension plan�4 your income exceed a Ceram Tom. This will require some new calculation on your return. Of read Gams these profit fro the Sale of assets Are now fully taxable at a maximum Rale of 28 percent. Income avenging this lax saving device for people whose incomes fluctuate sharply from year to year has been repealed. Contributions unless you itemize you Are no longer allowed to deduct gins to Charity. State and local taxes sales taxes Areno longer deductible. Interest Only 65 percent of your1987 personal interest expenses including consumer and automobile Loans is deductible. In addition you May fully deduct Home mortgage inter est on a loan thai does not exceed the Cost of the Home pins any improvements you have made. You my exceed Cost if you borrow Agai nil Yew Home to pay medial or educational expenses. No new restrictions for pre aug. It 1986, mortgage. Medical Apenes you May deduct Only untre imbued expenses that exceed 7.5 percent of your adjusted Gross in come Ottmrn any dependent at least 5 years old Mutt have a social Secund number. One with any interest or other unearned income and total income overj500 most file a return. A person who May be claimed As a dependent by some one else is no Rongjer snowed a personal exemption. A child order m who Endmore loan t1,000 of rivet Trochl income during the Jot if Haw to fill Cut 1special new form and that income May be taxed at la Parent s higher rate
