By Alex Rankin
What will happen at the 1968'
session of the state Legislature?
It will open January 3 with the
dias in the Assembly chamber
covered from one end to the other
with flowers. Assembly clerk
John T. McKennan will have to
bend them aside to see what
is going on down on the floor.
Down mere the 200 or so
Senators and Assemblymen will
be shaking hands, smiling and
laughing because many of them
have not seen each other for 12
montiis.
Then Assembly Speaker Anthony
J. Travia will smash his
gavel into die block. He never
taps it. He swings from die hip
and smashes it, widi his jaw
sticking out. On mis day mere
will be a smile on bis face.
Later, mere probably won't be.
And that will mark die opening
of a long, hot and probably
bitter session that will end in
June only because the lawmakers
have to go home to run in
primary election battles and get
in shape for the November elections.
Elections will be the key to
die 1968 session.
The lock into which this key
fits is die issue of the state
budget and a probable tax hike.
The three forces at work on
this look are Governor Rockefeller;
Republicans who control
die Senate, led by Senate
Majority Leader Earl W. Bryd-ges
of Niagara Falls, and Democrats
who control die Assembly,
led by Assembly Speaker Travia
of Brooklyn.
All state Legislators are up
for re- election in 1968. Republicans
began planning their recapture
of the Assembly as soon
as the state Constitutional Convention
ended in September.
Democrats argue Republicans
began planning back in April,
when die convention began.
Democrats, and Travia in particular
because he was president
of die convention, will be on
die defensive because of die lopsided
three- to- one defeat voters
gave die proposed charter in November.
It was largely written by
Travia and it was his hand that
rammed it through die Democrat-controlled
convention.
In die past, Rockefeller and
Travia have been die main negotiators
in the legislative arena,
wim Brydges mostly along for me
ride and little else.
But Brydges was minority
leader of the convention and
claims victory in me charter's
defeat at me polls. Rockefeller
backed the charter. The early
signs are tiiat Brydges is not
going to take any back seat mis
year.
Republicans plan to use the
defeat of die charter to beat the
Democrats in November and
come up with a majority. Democrats
will be trying to hang on.
They have only a six- vote majority
and Republicans figure tiiey
can beat the Democrats out of at
least six rural upstate seats
which mey won in the LB J landslide
of 1964.
Which is why Republicans will
also have an eye on the Republican
national convention - along
with Rockefeller. Theydon'twant
another Goldwater. The Republican
Assembly leadership apparently
believes in the " cocktail
theory" after me experience
of 1964.
The Democrats will be trying
to use the tax hike possibility
to their advantage.
A tax hike could seriously
damage Republicans, particularly
upstate, where taxpayers have
already been hit recently by new
county sales taxes to pay for
Medicaid.
This is a dilemma for Republicans,
because last year they
were under heavy pressure, e s pecially
on Long Island and in
the lower Hudson Valley area, to
raise the per pupil figure in
state aid to local school districts.
There was no increase.
An increase titis year, unless
someone cuts deep into Rockefeller's
budget, will mean a tax
hike.
This year the state budget is
$ 4.7 billion. Rockefeller is expected
to present die Legislature
with a budget of about $ 5.5 billion
on Jan. 15.
Three types of taxes are being
talked about - die sales tax,
the income tax and the business
tax. Democrats are already talking
publicly about a business
tax hike.
Rockefeller will be the main
speaker on tiiat flower - strewn
rostrum and in mat smile- filled
room on Jan. 3. He will be there
to outline his 1968 legislative-program.
Number one on his list is
compulsory health insurance. He
has been talking about it for
months as a cure for the spirating
costs of Medicaid.
Republicans in both houses,
however, are split on the issue,
so Rockefeller will probably have
to go over to the Democratic
side of die aisle for some votes.
It will also have to be one of
the first things the Legislature
takes up because it must have
a July 1 effective date - the
. fiscal year begins men - in
order for it to have an immediate
impact on Medicaid costs.
And that is where the maneuvering
will begin.
Morgan Elected President Of
College Alumni Association
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sk IRS
This column of questions and
answers on federal tax matters
is provided by die local office
of the U. S. Internal Revenue Ser-,
vice and is published as a public
service to taxpayers. The column
answers questions most frequently
asked by taxpayers.
Q - I took a loss on some shares
of stock I sold this year. Can I
deduct mis on my income tax
return?
A - Yes, losses on the sale
or exchange of capital as sets such
as stock can be deducted for income
tax purposes when they exceed
capital gains.
The loss, whether short or
long- term, must first be used to
offset any similar capital gain you
had during the year. Then any
net capital loss can be used to
reduce your taxable income up to
$ 1,000.
Capital losses in excess of
$ 1,000 can be carried over to
future tax years. Schedule D of
Form 1040 is used to compute
capital gains and losses.
Q - Where should I send my
January estimated tax payment?
A - Check the notice you received
indicating the amount you
owe. It will indicate where the
payment is to be sent.
Q - I started my own business
last year and have a few people
working for me. When do I have
to get withholding statements to
them?
A - The law requires employers
to issue them by Janu-
Burton Morgan of 325 Rose
Street, Massapequa I* rk, was
elected President of the Alumni
Association at State University
of New York's Agricultural and
Technical College at Farming-dale.
He is employed by the l e -
lanese Corporation in New York
City as production manager in the
Planning and Administrative Department.
He was a member of the
class of 1965.
Walsh Heads Amerind Club
Robert Walsh was elected
President of the American Atii-letic
and Social Club of Massapequa
Park last week.
Other officers elected were:
Edward Ryan, Vice President,
George Baker, Treasurer, James
Conway, Secretary and Edward
Muller, Sergeant - at - Arms.
LILCO Dedares Quarterly Dividend
The Board of Directors of Long
Island Lighting Company this
week declaredaregualrquarterly
dividend of 29 cents per share
on the common stock of die Company.
The dividend will be payable
on February 1, 1968, to share-owners
of record at the close
of business on January 11, 1968.
ary 31. Many employers try to
get them to employees as soon
as possible after January 1 so
they may file tax returns early.
Note that if any employee leaves
you during the year, you must
furnish him with a W- 2 statement
within 30 days of his final
day of employment.
Q - ft* I make a charitable
contribution by check before the
end of die year can I deduct it
on my 1967 return even though
the check is not cashed until
1968?
A - Yes, you should take the
deduction in the year you gave
the check provided it's dated
for tiiat year.
Q - Tips make up a good part
of my income. Will they be included
with my wages' on the W- 2
my boss gives me?
A - If you report tip income
to your employer for Social Security
purposes it will be r e corded
on your W- 2 statement.
Any tip income not included on
your W- 2 statement because it had
not been reported to your employer
must still be included in income
when you prepare your tax return.
Q - What is a wash sale in
referring to the sale of stock?
A - A wash sale usually refers
to the sale of stock or securities.
A wash sale occurs when you
sell some stock and within 30
days before or after the sale, buy
that stock, or substantially identical
stock. It is also a wash
sale if the purchase was made
by your wife or a corporation
you control.
The tax significance of a wash
sale is that any losses involved
are not tax deductible but are
added to the basis of the newly
acquired stock. You cannot sell
a stock to take a loss on your
tax return and buy substantially
the same stock within 30 days.
Gains from a wash sale are
taxable income.
Q - How old do you have to be
before you are required to file
a federal income tax return?
A - Age is not die consideration.
Anyone with income of $ 600
or more, $ 1,200 for those 65
or over, is required to file a
federal income tax return.
Q - On the gas tax refunds
farmers are entitled to, should
they be taken as a credit against
income tax again this year.
A - Yes, any credit for tax
paid on gas used this year for
farming purposes should betaken
as a credit against your 1967
income tax. In order to claim
me credit, a Form 4136 must
be filed wim your income tax
return.
Named To Bank Post
William C. Lensch of 25 Wall
Street, Farmingdale was named
assistant vice president of die
New York Bank for Savings.
Lensch started with the bank
as a messenger inl936. He was
promoted to assistant auditor in
1964.
• fi^
A\
J&
<% o\ W
fe
& drw £$$& &$' DURING OUR DIVIDEND- TIME EARNINGS!
TOP
EARNINGS
per
annum
4 TIMES A YEAR DIVIDENDS PAID
PLUS 10 FREE
DIVIDEND DAYS
Save by the 1 Oth of
January, Earn Dividends
from the 1 st.
TRANSFER
YOUR SAVINGS NOW
WITHOUT LOSS OF
DIVIDENDS
Just bring us your present
passbook before Jan. 10th
and we'll transfer your
savings from anywhere
in the U. S.
Directors also declared the r e gular
quarterly dividend of $ 1.-
4375 per share on the newly
issued 5 3/ 4% convertible preferred
stock. This dividend is
payable on February 10, 1968
to shareowners of record at die
close of business on January
18, 1968.
ORTGAGE LOANS
GET FAST ACT/ ON/
See us for the money to Buy, Build or Refinance. Home
or Commercial property. Low cost, long terms.
\ outh Shore Federal Savlnc
AND LOAN ASSOCIATION _ g
MASSAPEQUA OFFICE { Main Oftict): 4210 Sunrise Highway • LlMOta 1- tSOQ
FREEP0RT OFFICE: 17 Watt Merrick Road • FReepart i- « 2e0
EAST MEA00W OFFICE: 501 itllmara A » e. at Merrick A » « . • IVaafcM S- 4ii «
All Olfices Open Daily 9 AM to 3 PM • Mon. Ewe. 6 to 8 PM
* IT PAYS TO SAVE WHERE SERVICE COUNTS"
8
Farmingdale OBSERVER, Thursday, December 28, 1967 Page 5
