Newspaper Page Text
Page 8
— Griffin Daily News Thursday, December 30,1976
NEW YORK <UPI) - A
fundamental change in the
federal capital gains tax on
securities that takes effect New
Year’s Day will have an
enormous impact on inherited
wealth in the United States.
The Tax Reform Act of 1976
plugged some glaring gaps in
the capital gains tax and im
posed capital gains tax liability
on top of estate taxes for
inheritors of securities that may
have been held for years by a
deceased person and increased
enormously in value.
But at the same time, because
of the constitutional prohibition
on retroactive taxation, the 1976
law gave all existing holders of
Deputies kill ex-mental patient, free hostages
HAYSVILLE, Kan. (UPI) -
Deputies hiding behind a pickup
truck shot and killed a heavily
armed former mental patient
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Tax change has enormous impact
securities portfolios the benefit
of a new start for inheritance
purposes. For years to come,
the base for figuring capital
gains on inherited securities
will be Dec. 31, 1976.
This makes the end of this
year a significant turning point
in the history of American tax
law, not as epochal as the
beginning of the income tax in
1913, but quite important.
Under the present law if a
person who bought, say, $50,000
worth of stocks and has seen
them appreciate over the years
until they now are worth more
than $1 million dies between
now and midnight Friday, his or
her estate will pay only
Wednesday and freed six
hostages unharmed from a
south-central Kansas home.
Police identified the dead
man as terry I .ear, 30, who had
“a case history of this type of
thing."
Haysville Police Chief Jack
Murry said two policemen fired
simultaneously through the
glass front door of the house to
kill te-ar. Both shots struck
tear in the heart.
Murry said the decision to
free the hostages by force was
made because officers decided
tear intended to kill them.
One police officer, George
Jameson, suffered a minor head
wound from a shotgun pellet
fired by Lear. Jameson was
treated at a hospital and
Gas theft suspects free on bond
ATLANTA (UPI) - Thirty
one persons charged with
gasoline theft from an
underground pipeline in
Georgia and Alabama have
been released on bonds ranging
from $2,500 to $30,000, authori
ties said Wednesday.
One man, Millard Mann of
Tallapoosa, has not yet been
arrested, U. S. Attorney Jerry
Froelich said.
inheritance taxes and the
inheritor will not be liable for a
capital gains tax on the ac
cumulated $950,000 when the
securities are disposed of.
But if the holder of this
$950,000 accumulation dies after
Friday midnight, his heirs will
be liable for tax on any capital
gain from Dec. 31, 1976 to the
date the gain is realized by sale
of the securities.
Imposing the capital gains
tax as well as estate taxes on
gains subsequent to this year
ultimately will raise a lot of
revenue for Uncle Sam, but
government officials said it
would take a long time for that
to happen.
released.
Lear’s girlfriend, Lonnie
Bean, who was standing near
him, was splattered with blood.
She was taken to a Wichita
hospital, suffering from shock.
None of the hostages was
injured during the nine hours
tear kept them in the house.
“It all started as some kind of
argument earlier in the day,"
Murry said.
Police said I .ear went to the
John Hornek home and threat
ened Mrs. Hornek and five
children in the house. Murry
said [.ear's former wife, who
was not identified, was a sister
of Hornek.
The first six hostages were
released when three police
officers, I .ear’s girlfriend and
The 32 suspects were indicted
by a federal grand jury
Tuesday. They are scheduled to
be arraigned on Jan. 7 in
federal court.
The organized gasoline theft
ring, which included four
Tallapoosa city officials, al
legedly tapped pipelines run
ning from Texas to Northern
Virginia, in three places.
Gasoline was apparently
The new law does not allow
any future deductions for
capital losses below the ac
cumulated value of the inherit
ed securities as of Dec. 31, 1976.
Capital losses in future must be
figured against the original
purchase price of the securities
perhaps many years ago.
The change in the law also
will have enormous repercus
sions for accountants, bank
trust officers and the invest
ment advisory and securities
industries. It could force con
siderable rethinking about the
relative merits of income and
growth stocks, for example.
The actual rules for calculat-
two other persons volunteered
to take their places in the small
two-story house. The officers
agreed to enter the house
unarmed to negotiate with
tear.
The six hostages, who were
with tear when he was shot,
included Sedgwick County She
riff Johnny Darr, Wichita police
Lts. Harry Minor and Bernard
Derwatski, attorney Bernard
Derwatski, Miss Bean and a
psychiatrist.
tear was armed with a pistol,
a rifle and shotgun. Minor, who
was an acquaintance of tear,
acted as gobetween. During one
negotiating trip, Minor told
fellow officers that “I think this
guy is gonna kill us.”
His warning set into motion
siphoned from 26-inch lines of
Plantation and Colonial pipe
lines at Villa Rica, Temple and
Muscadine, Ala.
Most of the defendants were
charged with conspiracy to
steal, deliver and receive
gasoline from an interstate
pipeline. One other person was
charged with lying to the grand
jury.
The Tallapoosa officials
charged in the case were
Jimmy Folsom, 43, the police
Williams to appeal
ATI .ANT A (UPI) — William A.H. Williams has filed
formal notice of appeal of his second extortion conviction
in the 1974 abduction of former Atlanta Constitution
Editor Reg Murphy.
The appeal papers were filed in U.S. District Court here
on Wednesday for Williams, who last week began a 40-
year prison term at the U.S. penitentiary on the charges.
Williams had said at the conclusion of retrial last
August in Key West, Fla., that he did not wish to have a
third trial.
Williams’ attorney, Public Defender Bruce Kirwan,
said the papers were filed within the required 10 days of
final sentencing of his client by U.S. District Judge
William O’Kelley, who presided over both of Williams’
trials.
The Key West trial came after the first conviction,
reached after proceedings here, was reversed by the sth
Circuit Court of Appeals because of pretrial publicity and
a prosecutor’s courtroom remark.
Williams had also been sentenced to 40 years after his
first trial but in imposing the second sentence Dec. 21,
O’Kelley set parole eligibility for 1980.
Kirwan said he did not expect to argue the appeal before
the circuit court until May or June.
Murphy is now editor and publisher of the San Fran
cisco Examiner.
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ing the value of the securities as
of Dec. 31, 1976 are rather
complicated and vary for dif
ferent types of securities.
The old law’s provision
allowing accumulation of big
capital gains on securities that
paid only inheritance tax at
death was criticized in a Senate
Budget Committee study on two
main grounds — that it favored
the well-to-do unduly, and that it
encouraged undesirable
hoarding of wealth since capital
gains taxes must be paid on
such accumulated appreciation
if the securities are sold before
death.
the plan to shoot the suspect
from outside the house.
Authorities said two Sedgwick
County sheriff’s deputies hiding
behind a pickup truck fired
from 100 feet away into the
lighted house to kill tear as he
sat on a staircase watching the
hostages.
Seconds after the fatal shots,
officers rushed into the house
and found the hostages unin
jured.
A woman who went to high
school with tear described him
as “a very scary guy." The
woman, who asked not to be
identified, said tear had a
violent temper and once shot
out his brother's eye during a
childhood argument.
chief; his nephew, Robert I>ee
Folsom, 30, the assistant police
chief; Sam Alta Dryden, 57, the
mayor and Buran Robinson, 39,
a councilman.
They were among the 30
defendants from Georgia. Two
were from Alabama.
Dryden and Robinson were
arrested last September with
nine other persons when the
alleged conspiracy was first
uncovered.
’•■■7jCT
IT / .
Maid of Cotton
Ellen Douglas Clark (center), a blue-eyed blonde from Memphis, was named the 1977 Maid
of Cotton from among 18 finalists last night. Ann Joiner (1) from Lookout Mountain, Tenn.,
was named second-runner-up and Janet Stickley (r) of Salisbury, N.C. was named first
runner-up. (UPI)
Carter, cabinet
to reveal worth
PLAINS, GA. (UPI) -
President-elect Jimmy Carter
and each member of his
Cabinet will disclose full details
of their net worth and
arrangements for divesting
their financial holdings before
inauguration day, according to
a Carter aide.
Press Secretary Jody Powell
said Wednesday the Code of
Ethics, setting forth guidelines
for financial disclosure, will be
made public Friday.
Carter revealed that each
member of his newly formed
Cabinet agreed to the terms of
the code and will disclose his
financial status in advance of
taking office.
The president-elect, mean
time, was making final deci
sions on his White House staff
and members of the subcabinet,
including undersecretaries and
assistant secretaries. Carter
has impressed on Cabinet
officials his desire to have
more blacks and women in the
subcabinet level.
But there was no indication
that he would set that example.
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Transition aides said most of
Carter’s inner circle campaign
staff — mostly white men —
will be his key operatives in the
White House.
Carter so far has designated
only Powell as press secretary,
but he also has described
campaign treasurer Robert
Lipshutz as his White House
counsel.
Others expected to be part of
the White House staff — with
direct access to Carter — were
Hamilton Jordan, his campaign
manager who will have a
position involving political con
tacts
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