26—Lancaster Farming. Saturday. May 3.1969 Nixon Seeks ‘Tax-Loss’ Farm Legislation Piesidcnt Richaid M Nixon aent a special message on tax re form to Congiess last week In cluded in the message was a piopos.il to close the taxless fanning "loophole" Administration witnesses later told the House and Ways and Means Committee that their pro posal would —Apply to all taxpayeis who incur total ordinal y farm deduc tions in excess of total ordinary farm income To the extent that such deductions exceed $5,000 per year for individuals (corpo rations would receive no exemp tion) they would be credited to an "excess deductions account ” Unless offset by net income in subsequent years, any gain teal ized from the subsequent dispo sition of property used in farm ing (which under current law would otherwise be a capital gain) would be treated as ordin ary income to the extent of the amount in the “excess deduc tions account.” —Remove livestock from its exempt status under recapture of depreciation piovisions of the Bevenue Acl of 1962. —Extend the holding peuod (now 12 months) foi all livestock now qualifying for capital gams treatment to two thuds of the useful life of the animal oi two yeais, whichever is shelter Race hoises would be excepted and would not be heated as breeding livestock thus qualify ing foi capital gams treatment, unless bred —Reuse the “hobby farming” section of current law which dis allows ceitain deductions when a taxpayer incurs losses m a tiade FREE analysis of yonr home oU> heating equipment. Out specially trained men will tell yon if it needs cleaning, adjustment, or minor part replacement. They’ll show yon how to improve your homer with Texaco’s new Jet Flame Booster that can Increase burner efficiency up to 42%. Give us a call. No obligation. fFuelChiefl ! WE GIVE S & H GREEN STAMPS Garber Oil Co. Texaco Fuel Chief .. ■ Burner Sales & Service ' ‘ 105 Fairview St. MOUNT JOY, PA. Ph. 653-1821 ■J oi business in excess of $50,000 for five consecutive years. This section would be amended so that the rccomputation would be made if the $50,000 loss were exceeded in any three of live consecutive ycais. This four-point proposal varies considerably from the so-called Metcalf bill (S 500), as well as from the Schcrle-Vandcr Jagt proposals (H R 7617 and other bills) supported by Farm Bu reau These two tax-loss farming proposals, while similar in many respects, are quite different in their application. THE METCALF BILL pio- ALL THREE proposals (Nixon vides that anyone earning up to Administration, Metcalf, and $i5,000 a year off the farm may Farm Bureau) would apply offset such income with a cor- only to taxpayers using the responding amount of farm loss- “cash” method of farm account es for income tax purposes How- mg While the latter two pro ever, if he earned more than posals would not affect individ sls,ooo a year off the farm, he uals earning all or a major por would have his allowable farm tion of their incomes from farm- START NOW!... Start your spring fertilizing program • Top dress small grains with 30 - 60 lbs. of Nitrogen, NOW! • Top dress pastures with 60 - 100 lbs. of Nitrogen, NOW! • Prepare alfalfa seedbeds by plowing down phosphorus and potash, NOW! • Plan your corn program around ANHYDROUS AMMONIA, the most economical nitrogen, and Master Farmer BULK BLENDS. For Complete Field Service Call Your FULL SERVICE COMPANY ORGANIC PLANT FOOD CO. Grofftown Road P. 0. Box 132 Lancaster, Pa. FOR SEED CORN Use the corn planted BY CHAMPIONS JESSE L. BALMER Lititz R. D. #4 ONE ACRE CORN CHAMPION With Griffith Order now from your dealer or Eastern State Distributing Co. Newport Rd., Vz mi. West of Rt. 501 “Lititz, R. D. 2 Ph. 626-8909 loss deduction reduced dollar for dollar to the extent that off-farm income exceeded that llpure. Thus, a taxpayer earning 530.000 a year or more off the farm could use no farm losses as an offset to his off-farm Incomes. The bills supported by Farm Bureau place a simple limitation on the amount of farm losses any taxpayer can use as an offset to off-farm income. Consistent with proposals made by Johnson Administration Treasury offi cials. this limitation on allowable farm losses for purposes of de duction would be set at $15,000 —legardless of the total earn ings of the taxpayer. All tax payers would be treated alike. 392-4963 or 392-0374 program. The Youth committee /*BAk|£C iICIAIC vi 11 sponsor a dance foi com- UlmMlvlllii WfcWWiJ munity youth May 10. 8 to 11 pm. at the Grange Hall with U.S.S.R. band furnishing music. Fulton Granite «66 met in regular session April 28 in their halt at Oakryn The Master. Cllf foid W. Holloway Jr., conducted the business session The mem bers expressed opposition to H. B 86 which would permit sale of alcoholic beverages at picnics and other outdoor activities by non-profit organizations as fund raising pi ejects. Pomona chorus rehearsal will be held May 4.8 p m and Degree rehearsal will be held May 5, 8 p.m. at Fulton Grange Hall The county visitation meeting will be held May 6, 8 pm. at White Horse Fire Hall as guests of Salisbury Grange. Fulton offic ers will fill the chairs and Colerain Grange will present the ing, the Nixon-backed proposal could affect nearly all those with interests in farming—particular ly if they hold livestock for breeding purposes. 20 ACRES AMO A MULE NEEDED^ YOU PROi ~ - PRICES AND GENEROUS TRADE IN JARED R. STAUFFER Martindale Rev. Richard Dunham pastor of the Chcslnul'Lcvol Pi-sbytcr tan Church, will be the -peakcr for the Grange "Go-to-Church Night” May 18, 8 p.m at the Grange Hall. The service *'ill be proceeded by a coveied dish supper at 7 p m. All Grangers of Lancaster County and their fitends are invited. The Women’s Activity, com mittee will have a food stand at r household sale in Jure The Junior Grange will not hold their meeting May 12 but will have a icgular meeting May 2d and a special meeting Saturday June 7 from 130 to 330 p m They will hold a bake sale Ma*' 23. First and Second Degiees were conferred upon a large class of candidates at this meet.ng and the Third and Fourth Degiees will be given at the ne-‘. meet ing, May 12. Sales & Service ONLY THIS... Phone 445-5465
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