Two-Way Stretch

In the new tax program offered to Congress by President Eisenhower last week to provide the nation's economy --with more breathing space, many of the 25 proposals favored the businessman (see BUSINESS). From the left came cries of "favoritism," but closer inspection showed that the tax plan had a two-way stretch, and the individual taxpayer had not been left out of its ample benefits. Items:

P:Greater deductions for medical expenses. The President proposed doubling the present maximum allowances to $10,000 for a family. Estimated taxpayer savings: $65 million a year.

P: A revised formula for taxing pensions and annuities, to favor the beneficiaries, e.g., the holder of an annuity will get back his investment tax-free by the time he reaches his actuarial life expectancy. Estimated savings: $10 million.

P: More liberal personal exemptions for dependent children. Taxpayers would get full exemptions for all children under the age of 18, and for dependent children over 18 who are still attending school (working children who earn more than $600 a year will still have to pay their own taxes, though they will now be fathers' little deductible dividends). Estimated savings: $75 million.

P: Deductions for child-care expenses. This applies mainly to widows and widowers who must pay for the care of their dependents in order to leave home and work. Estimated savings: $40 million.

This file is automatically generated by a robot program, so reader's discretion is required.