■ fill niDici^
i iiKii«»
^ISK with these food buys
Campbell’s & t I
VEGETABLE BEEF SOUP 4»*1
Libby’s
TOMATO SAUCE 8 ,-*l
Snider’s
TOMATO CATSUP 4-»l
Libby’s
| BARTLETT PEARS 2 ,..*1
I Real Gold
ORANGE BASE 1 >1
Cb WEEK END Kb
GJSJbuys
Rath’s
SPARE RIBS - 89c
Armour’s
FLANK STEAK ^ 1.10
ROUND STEAK l, 1.10
Fresh Frozen
UNALAKLEET TROUT l, 59c
PRICES EFFECTIVE THURSDAY, FRIDAY & SATURDAY
NC SUPERMARKET tfjra
Department el Northern Commercial Company 1
V
Phone MAin 133 FREE DELIVERY
liiiimii a ~i in .."IllirTMMiMOTMimiTmn'iiiMi nil innrrnrrr i iumim—ihiibi—i——■ihm—i———
V
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Alaska Cost-of-Living Allowance Is
I Now Taxable, Rules Int. Rev. Dept
I By FRANK W. VAILLE
WASHINGTON, UP) — The Inter
I nal Revenue Service has ruled
that the tax-free cost-of-living al
lowance paid federal employes in
Alaska is now taxable.
| The ruling, which Senator Bob
Bartlett called shocking, was con
I tained in a letter by Harold
I Swartz, assistant IRS commission
j er, to R. D. Stevenson, Alaska’s
Territorial Tax Commissioner.
Federal employes in Alaska re
| ceive a 25 per cent cost-of-living
! allowance above their basic wage
I scale to offset the higher costs in
| Alask. It previously had been held
exempt from taxation.
In his letter to Stevenson, how
ever, Swartz noted the tax-exempt
j status was restricted to civilian
j officers or employes of the govern
j ment stationed outside the conti
j nental United States.
The admission of Alaska as the
j 49th state thus makes a change
| necessary, Swartz said, adding:
“Individuals then stationed
I there will no longer meet the sta
tutory requirement that they be
I stationed outside the continental
- United States, and their cost-of
living allowances will thereupon
become subject to federal income
tax.”
“It runs directly counter,” Bart
lett said, “to the conclusion ar
rived at by the comptroller gen
eral as recently as December 18
last when he advised the director
of the Bureau of the Budget of his
opinion that ‘Continental United
States’ as set forth in the Admin
istration expense act should be
construed to mean the 48 states
and the District of Columbia. What
he did, the Internal Revenue Serv
ice could have done.”
I
Bartlett said he had heard no
suggestion during consideration
of statehood or later that “such a
decision was even contemplated.”
“It is my intention to seek every
means — administrative or legis
lative — in an effort to redress
this wrong because I am convinced
this does injury to federal em
ployes serving in Alaska and will
make impossible the main
tenance there of the high stan
dards of federal servic which now
exist.”
Should the IRS ruling stand, it
would cut sharply into the pay of
federal employes in the new state,
i Under present tax schedules, a
j single man with no dependents and
receiving a base pay of $8,000 a
! year would pay $1,540 in tax. With
the 25 per cent allowance becom
i ing taxable, the same man’s tax
i would be increased to $2,096. The
I difference would represent an ap
proximate $46 a month cut in
take-home pay.
Collision Recorded
Between Plane and Horse
i MALIBU, Calif., OP) — Sheriff’s
; officers here logged something
: new in the way of Sunday travel
: hazards: A collision involving a
| horse and an airplane.
Robert Goodyear, 49, glided in
for a landing in an open field af
j ter his light plane ran out of gas
Sunday. A horse galloped into the
craft’s path and they collided.
The horse was killed, Goodyear’s
plane was wrecked, and the pilot
and his wife, Mary, 46, suffered
cuts and bruises.
T. F. Stevens
Of Interior Department
Receives Promotion
WASHINGTON, OP) — Theodore
F. Stevens, Legislative Counsel for
the Interior Department, will be
promoted to be an assistant to the
Secretary of Legislative Counsel,
it was learned last week.
Announcement of the change is
expected next week.
Stevens has been legislative
counsel since June 25, 1956. Prior
■ to that he was United States At
torney for the Fourth Judicial
District in Alaska. He is a native
of Indianapolis.
CHERRY’S
Barber Shop
Closed on Mondays
HOURS
10 A. M. to 6 P. M.
NOW— YOU, TOO, CAN WIN
THAT MOTOR OF YOUR DREAMS —
ANEW
Mercury Mark 25
20-H.P. OUTBOARD MOTOR
HOW?
WELL HERE’S HOW — For every dollar cash
purchase and for every dollar paid on account you
get yourself a FREE TICKET on this MARK 25
OUTBOARD MOTOR.
—Drawing to be Held On TV Thursday, Jan. 15—
REMEMBER — THAT’S AT
MORGAN & SON
So Hurry On In and Get That FREE TICKET !
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