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...firm, which up to then had been mainly family-run. After an initial success, however, McCardell and the company both met with trouble. International Harvester in its 1980 fiscal year lost $397 million and in the first quarter of 1981 another $96.4 million. It has also omitted its stock dividend for the first time in 71 years. No company outside the auto industry lost more money during that period...

Author: /time Magazine | Title: Hard Times at Harvester | 5/25/1981 | See Source »

Interest Exclusions. Beginning this year, Americans do not pay any tax on up to $200 per year ($400 for a joint tax return) on income from savings account interest and stock dividends. But much of such income is paid to people who already receive more than $200 in interest income yearly. To encourage these people to save more, bills in the House would exclude up to $10,000 of interest and dividend income for individuals and even unlimited amounts for elderly taxpayers. Senator Harrison Schmitt of New Mexico has introduced a bill that would exempt the first 25% of interest...

Author: /time Magazine | Title: Easing the Tax Squeeze on Savers | 5/11/1981 | See Source »

...President and his aides want other tax changes, too. Among them: cutting the top tax rate on interest and dividend income to 50%, from the present 70%; reducing the "marriage penalty," a provision in the tax laws that now forces many couples in which both husband and wife work to pay a higher tax on their combined earnings than they would if they were single and filing separately. David Stockman, Director of the Office of Management and Budget, had urged that these changes be wrapped into the first tax bill. The President instead decided to propose at first a "simple...

Author: /time Magazine | Title: The Unkindest Cuts of All | 2/23/1981 | See Source »

...Arab world. Sadat's isolation makes him politically vulnerable both to internal enemies, like Muslim fundamentalists, and to external foes, like the irrepressible Gaddafi. Sadat's troubles are economic as well as political; he would be in a better position to deliver his long-promised peace dividend to his overpopulated, impoverished country if an Arab-Israeli settlement extended to the West Bank as well as the Sinai. Sadat might then also be able to count on more economic assistance from the Saudis; as long as he is a pariah in the Arab world, they are constrained from helping...

Author: /time Magazine | Title: To Rebuild the Image | 2/23/1981 | See Source »

...investments. Both measures were advocated by the President during the fall campaign. Treasury Secretary Donald Regan indicated last week, though, that the Administration will not advocate any further reduction in the capital gains tax on long-term investment profits or any new tax breaks for interest and dividend income. Consumers, however, are likely to find the benefits of the tax cut to be as elusive as the siren of the Lorelei. Higher Social Security levies that went into effect on Jan. 1, and inflation, which automatically pushes people into higher tax brackets, have already wiped out most of the real...

Author: /time Magazine | Title: Taming the Monster | 2/9/1981 | See Source »

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