Masonry Magazine August 1987 Page. 41
TAX REFORM
continued from page 17
Priced automobiles as well as more expensive automobiles. Under the old law, a $12,800 car could be depreciated in three years (the typical depreciation period) and a $22,400 car could be depreciated in five years (the maximum period most people would own a car) Under the new law, a $9,110 car can be depreciated in three years and a $12,060 car can be depreciated in five years.
Year Old Law Depreciation New Law Depreciation
1 3,200 2,560
2 4,800 4,100
3 4,800 2,450
4 4,800 1,475
later 4,800 1,475
Thus, the new law will discourage the purchase of cars costing between $9,110 and $12,800, and will severely discourage the purchase of cars costing between $12,060 and $22,400, as well as more expensive cars.
Expensive automobiles are especially hard-hit under these new tax provisions, as the table below demonstrates.
Price OLD LAW NEW LAW
12,000 3 5
15,000 4 7
20,000 5 11
25,000 6 14
35,000 8 21
If Congress and the Administration had the trade deficit in mind, they would have set the three year maximum at the price of the most expensive car made in North America, but international considerations appear to be absent from this tax law.
The Jobs Credit
The jobs credit for hiring disadvantaged workers has been cut in half. This tax change will adversely affect mason contractors. The credit used to be half of the first year wages and a quarter of the second year wages up to a maximum of $6,000 in annual wages. Now the credit is 40 percent of the first year's wages and a minimum employment period is imposed. The second year credit has been eliminated entirely.
WECK® Glass Blocks
Quality Glass Products since 1900
Design-Patent Design-Patent
NUBIO clear or goldtone AKTIS clear only CLEAR VIEW clear only
X-RIB clear only FORTRESS clear only
FORTRESS = Security
The glass faces of this Glass Block are substantially thicker than normal Glass Blocks. Firearms tests in Europe showed this block to be bullet resistant. An excellent choice to deter vandalism or break-ins. The FORTRESS block has a hollow low pressure center, which gives it good insulation qualities.
For More Information, Contact: Glashaus, Inc.
P.O. Box 517, Elk Grove Village, IL 60007 312-640-6910
MASONRY-JULY/AUGUST, 1987 41