rage Twenty

THE JEWISH NEWS

Friday, October 29, 1943

War Chest Donation Reduces Your Income Taxes

15 Pct. of Net Income
Allowed for Charity

The United States Government has established
the principle of generous income tax allowances
:which permit support of private •philanthropy by
individuals 'and corporations. - •
The cost of .contributions is absorbed throxigh. ,
tax allowances to the extent of from 18.4 percent
to 88 percent in the case of individuals, and from
27 percent to 81 percent in the case of corporations.
In order that the community may be fully
informed regarding the generous encouragement
offered by our government, The Jewish News
presents several tables which should serve as help
to potential contributors in deciding on their gifts
to the War Chest campaign, which opens here
. next Monday for a goal of $8,250,000.
Individuals may ded.uct gifts from their tax-.
able incomes up to 15 'percent of net incomes ;
thereby effecting subStantial tax savings,
The _following _table shows the approximate
percentage' of charitable gifts absorbed by the
government under the 1943 tax rates:
GIFTS • OF..INDIVIDUALS
- -
TaX. Allowances per $100 'Gift

- Taxable .
Income
$ 2,000

Pct. of gift absorbed Actual cost
by the government Per $100 gift

3,000
4,000
• 5,000
6,000
8,000
10,000
12,000
15,000
20,000
25,000
30,000
40,000
50,000
75,0 00
100,000
200,000
Over $200,000 -

:

18
21
22
26
26
30
34
38 •
46
52
58 ,
61
67
69
78
83
87
88

$82
78
78
74
74
70
66
-62
54
48
42
39
33
31
22
17
13
12

Twenty Years Ago This Week

Compiled From the Records of the
Jewish Telegraphic Agency

NEW YORK-Addressing the American Jewish
Congress here, • Israel Zangwill declared that poll-
- tiCal Zionism is dead and Jews must face that fact
realistically. Replying to Mr. • Zangwill, Dr. Stephen
S. Wise declared that the former spoke "to the
American . Jewish Congress • and not for the Con-
gress" and added that .he."speaks not for Israel but
for Israel Zangwill." A message from President
Coolidge endorsing the general aims of the Congress
was read to the delegates. At the closing session,
Dr. Wise . was elected president of the body.

NEW. YORK-Interviewed here shortly after his
arrival, Lloyd George, Britain's war-time prime
minister, told the press that the anti-Semitic move=
ment was "extremely stupid." He predicted that a
great future lies ahead for the Jews in Palestine.

Thus, the net actual cost of a gift may vary
from 82 percent -of the amount contributed to as
low as 12 percent.
Those who would like to take advantage of
the maximum charity. de _ duction should study. the
following table:

GIFTS OF INDIVIDUALS

Tax Allow. on Maximum Deductible Gifts

_
T axable'
Income

$

2,000
2,500
3,000
3,500
4,000
5,000
6,000
8,000
10,000
12,000
15,000
20,000
25,000
30,000
40,000
50,000
75,000
100,000
200,000
500,000
1,000,000

-

Maximum
Actual cost 'of
gifts allowed maximum allow-
albe gifts
as deduction

$

300
375
450
525
600
750
900
1.200
1,500
1,800
2,250
3,000 .
3,750
4,500
6,000 -
7,500
11,250
-15,000
30,000
75,000
150,000

$ 243
292
351
409
468
555
666
840
990
1,116
1,265
1,470
1,597
1,770
2,100
2,355
2,662
2,650
3,900
9,000
18,000

CORPORATION GIFTS AT A COST OF
ONLY 19%

The Revenue Act of 1942 establishes a flat 90
per cent tax on all excess profits of corporations,
with a provision for a post-war refund of 10 per
cent of this tax. This means an effective excess
profits tax rate of 81 per cent.
Under the 1942 Act, earnings subject to excess
profits are separated entirely from earnings that
are subject only to normal tax and surtax. Con-
sequently, any corporation subject to excess
profits taxes can make a contribution to the War
Chest (up to five per cent of net) out of excess
'Profits earnings at a net cost of only 19c for each
$1.00 contributed. The balance of 81 represents a
tax savings as shown below:

Total Tax Savings
Per Dollar
81c

Net Cost of Gift
Per Dollar
19c

This means that for every $1,000 of excess
profits earnings contributed, the corporation saves
$810 in taxes, and the net cost of the gift is only
$190. Tax savings for various amounts of gifts
out of excess profits are shown below:
Net Cost to
Amount
Corporation
Tax Saving
of Gift
$ 4,050
$ 5,000
$ 950
8,100
1,900
10,000
20,250
25,000
4,750
40,500
9,500
50,000
100,000
81,000
19,000
250,000
202,500
47,500

Palestine Aids War Work

JERUSALEMAll preparations have been com-
pleted for beginning excavations in the City of
David, it was learned here. - The expedition which is
planning to uncover - the •city is headed by Prof.
McAllister.

JERUSALEM-;--Complete freedom for all the
Arab countries and the early establishment of an
.Arab Federation to include all the Arab states, were
urged in . two resolutions adopted by the Pan-Arab
Congress which has just - concluded in Mecca. The
meeting also decided to boycott French, British and
Jewish .goods.
• -
CLEVELAND-Lloyd George, Britain's war-time
premier, this week told a Jewish, TelegraphiC Agency
correspondent that "Israel Zangwill is a great writer,
but not a great diplomat," and denied Zangwill's
.assertion that political Zionism is dead.

NEW YORK-Louis Marshall, president of the
American JeWish Cominittee, this week scored the
proposal made by Israel Zangwill. that the Jews of
America should vote as a "Jewish bloc." During his
address at the American Jewish Congress, where he
made the proposal for a Jewish vote, 'Mr. Zangwill
declared that American -Jewish life operates under-
"Marshall law."

BERLIN-The danger of pogroms hangs over
the Jews of Germany, it was stated by delegates to
the conference of Jewish Front soldiers •here. A
resolution was. adopted urging the gdvernment to
take steps to curg the violent anti-Semitic agitation.

LONDON-The authorities today prohibited fur-
ther performances of Sholem Asch's "God of Ven-
geance," which the Sunday Express described as a
"foul spectacle." The play was banned in New York
some , 'months'-' ago. • •
•

•

Sturdy farm workers, singing on their way to the
fields in one of the 271 JeWish agricultural settlements
in the Jewish homeland in Palestine typify the war
effort of its 584,000 who have been fully mobilized
for an allied victory through the "Rescue for Victory"
campaign of the United Jewish Appeal for Refugees!
Overseas Needs and PaleStine.
Funds •for-this historic task are provided in Detroit
atY4441
WV, CA4PIR i gn 91-434-4- 4,f , zw.C74

40AW

Drive for $8,250,000
To Open Here Monday

Any firm in the excess profits bracket can give
the full deductible five per cent of net income
gift from excess profits for a. net cost of less than
one per cent of its taxable earnings.
FOR CORPORATIONS NOT. IN EXCESS
PROFITS BRACKET
Corporations (even though not in the excess
profits bracket) may effect substantial-tax savings
by making gifts to the War Chest. Such gifts are
permitted under the law to the extent of five per
cent of the taxable net income. For 1943, the
combined Federal normal income tax arid surtax
will' be 40 per cent for , all corporations with
earnings of $50,000 or more. Consequently, for
each $1,000 contribution made, a corporation not
in the excess profits bracket would reduce its
taxes by $400, making the net cost of the contri-
bution only $600. , Similar -savings on, various
amounts contributed are as follows:
Gift
Tax Reduction
Net Cost

$ 5,000
10,000
25,000
50,000
100,000
250,000

$ 2,000
4,000 •
10,000
20,000
40,000
100,000

for corporations
not in excess
profits bracket

$ 3,000
6,000
15,000
. 30,000
60,000
150,000

Internationally Known
Leaders Will Address
War Chest Gatherings

The needs of the causes included in - the
War Chest Campaign for $8,250,000 will be
portrayed at the .daily -campaign report lunch-
eons by an outstanding group. of internationally
and nationally furious persons in .the fields of
diplomacy, social welfare, labor and the arts.
. Nate S. Shapero is chairman:of the War
Chest .program : committee and Herman 1VI.
Pekarsky is the secretary. . .
Among those who will 'appear. as guest
speakers at the campaign luncheons are: Ray-
mond Massey, famous actor and portrayer of
Abraham Lincoln; Fannie Hurst, famous author
and novelist; Pierre Cot, French Minister of
Aviation in . the Daladier Cabinet; Dr. Carl J.
Hambro, former president of. the Norwegian
Parliament and former president of the League
of Nations Assembly; and Charles P. Taft, di-
rector of the Office of Comthunity War Serv-
ices of the Federal Security Agency._
One of the features of this series will be
the program at the Nov: 3 luncheon ; arranged
jointly by the War Chest -and the Detroit Round
Table of Catholics ; Jews and Protestants.
Speakers will be Dr. Israel Goldstein; preSident
of the Synagogue Council of America, the
American Zionist Organiation and the Jewish
National Fund; Dr. Emory W. Luccock, pastor
of the First Presbyterian Church of Evanston,
Ill.; and Father Raymond A. McGowan; as-
sistant; director, Social Action Department,
National Cathodic Welfare Conference.
The complete calendar of War Chest events
and speakers follows:

, Nov. 1-Opening Campaign Meeting-Mayor
Edward . J. Jeffries, 4, Frank D. Eaman and
George T. Christopher.
Nov. 2-Home Front Day-Charles P. Taft,
Director, Office of Community War Services, of
Federal Security Agency.
Nov. 3-Advance Gifts Day-Sponsored jointly
with Detroit Round Table of CatholicS, JeWs and
Protestants:'
Speakers: Dr. Israel Goldstein, president Syna-
gogue Council of America; Dr. Emory W. . Luccock,
Pastor- First Presbyterian Church. Evfrisfon, Ill.;
Fr. Raymond A. McGowan, Ass't. Dir. Social Action
Departthent National Catholic Welfare Conference,
Washington.
Nov. .4-Silver Anniversary Day-Pierre Cot.
Nov. 5-Commerce Day-Cecil Roberts.
Nov. 8-United Nations Day-Dr. C. J. Hambro.
Nov. 9-Industry Day-Raymond C. iNdaSsey-
. 1Noy. 10-Labor Day-Monroe Sweetland and
Abraham Bluestein. .
Nov. 11-Armed Forces DayProminent Mili-
tary Person.
Nov. 12-Branches and Schools-Miss Fannie
Hurst.
Nov. 15-Metropolitan Day-Dr. B'. A. Liu.
Nov. 16Victory Dinner.
All luncheons, will:be-held in the. Crystal
adillae Hotel," at 12:15
on
w of the BoOk.-C
th:

