16—MANCHESTER HERALD. Saturday, Dec. 29, 1990 Higher taxes will go into effect Tuesday NEW YEAR'S EVE By JIM LUTHER deductions, phases out the value of their personal ex­ wine, now 17 cents a gallon, goes to $1.07; the levy on The Associated Press emptions and subjects more of their wages to Medicare their earnings than applied to those with slighUy less in­ artificially carbonated wine, now $2.40, goes to $3.30 a come has been eliminated. This results in a new top rate payroll taxes. gallon. WASHINGTON — New federal taxes will raise the On the other hand, prior law will give all taxpayers of 31 percent, down from 33 percent. The majority of LOCAL NEWS INSIDE LUXURIES: A new 10 percent tax applies to that Americans will continue to pay a flat rate of 15 percent price of tobacco, beverage alcohol and some luxuries bigger exemptions and other adjustments designed to portion of die price above $30,000 for cars, $100,000 beginning "Riesday while upper-bracket Americans will on their taxable income. prevent last year’s inflation from raising their income for boats. $250,000 for aircraft and $10,000 for furs and have to pay higher income taxes to help reduce the na­ taxes. Because of the new law and the automatic inflation ■ Yarn Mill conversion is sought. jewelry. Vehicles, including taxis and cruise ships, used tion’s budget deficit. The new year also brings a major increase in the to transport people for hire are exempt. adjustments, the new rate structure looks like this: The changes, combined with the 5.1-cent-a-gallon eamed-ineome tax credit, which benefits low-income The tax applies only to the first retail sale of an item. —Single people pay 15 percent of the first $20,350 of ■ District OKs equipment payment. gasoline tax increase that took effect Dec. 1, will raise working families with children, and expanded tax incen­ However, Coopers & Lybrand accountants note, for ex­ taxable income (after exemptions and deductions)- 28 the average household’s federal tax bill by about $215 a tives for energy investment. ample, that if stones from an antique bracelet worth percent on the next $28,950 and 31 percent on ev’erv- thing over $49,300. ^ What's year. Congress estimates the average family making less Here arc highlights of the changes: $10,000 were reset into a new piece of jewelry worth ■ Garage fire injures Manchester man. than $50,000 will pay an extra $1 a week. TOBACCO: Taxes arc rising by 25 percent, meaning $15,000, the tax would be levied against $5,000. —Couples filing a joint return pay 15 percent of the Those with incomes between $50,000 and $100,000 the 16-ccnt tax on a pack of cigarettes goes to 20 cents. TELEPHONE SERVICE: The 3 percent tax on local first $34,000 of taxable income; 28 percent on the next News will pay about $278 a year more on the average. The in­ Other levies: as much as $30 per 1,000 large cigars; and long-distance telephone service, which had been $48,150 and 31 percent on everything over $82,150. ■ New teachers have no regrets. crease for the $100,000-to-$200,000 group will average $1,125 per 1,000 small cigars; chewing tobacco, 12 scheduled to expire Dec. 31, was made permanent. EXEMPTIONS: Increased by $100 to $2,150. Once Dec. 31,1990 $839. The richest 600,000 couples and individuals — cents a pound; snuff, 36 cents a pound; pipe tobacco, GAS GUZZLERS: The p>enalty tax on fuel-thirsty adjusted gross income (AGl) exceeds $100,000 for a with incomes over $200,000 — will pay an average of 67'/2 cents a pound. cars is doubled. Any new car bought in 1991 with an single {jerson or $150,0Ci0 for a couple, the exemptions Locol/Regionol Section, Page 7. $8,598 more per year. ALCOHOL: The liquor tax goes up $1 to $13.50 for a EPA rating under 22'/2 miles per gallon is subject to a are reduced gradually. They arc eliminated totally once Gulf at a Glance Congress hit top-income earners to correct what many gallon of 100-proof (50 percent alcohol), an extra 20 tax ranging from $1,000 (for a 21i/2-mpg model) to income tops $222,500 (single) or $272,500 (couple). lawmakers perceived as overly generous tax cuts during •Mgrr cents a fifth for 100-proof; 16 cents for 80-proof. The $7,700 (less than 12>/2 mpg). STANDARD DEDUCTIONS: Go up from $3,250 to ■ Iraqi officials arc applaud­ the 1980s. The new law boosts the top income-tax rate beer tax is doubled to 32 cents a six-pack. The tax on Vbur Hometown Newspaper TAX RATES: A quirk in the 1986 law that allowed $3,400 for singles and from $5,450 to $5,700 for Voted 1990 New England Newspaper of the Year ing a separate European peace on people at that income level, restricts their itemized wine is rising, depending on alcohol content. Table some top-income people to pay a lower rate on part of couples. Newsstand Price: 35 Cents initiative amid indications Sad­ dam Hussein may compromise ■" W a ' on a date for high-level talks with the Bush administration on Quiet night avoiding armed conflict. • .!»» t ■ But overtones of war con­ , t ; i f tinued to dominate pronounce­ BABY OF 1991 ments from Baghdad. A govern­ FIRST planned for ment newspaper warned Sunday of terrorist attacks if combat « ? j . breaks out, and the country’s in­ formation minister boa.stcd that Iraqis would “show the world CONTEST New Year eve America is a paper tiger.” Saddam Flussein said in a “Cocooning, or staying at home, By SCOTT B. BREDE New Year’s message that be­ is very cool this year,” said one cause of the threat of war a For The Proud Parents and DIANNA M. TALBOT Our Gift video store owner. “fal.se happiness” should per­ Manchester Herald “I don’t think people want to ’ • X* vade any holiday celebrations. a spend that kind of money just for $ MANCHESTER — Rdf many. one evening,” said Marianne Jensen, ■ In Saudi Arabia, Vice To You... New Year’s Eve is no longer a night manager of Eastern Video on East President Dan Quaylc pressed of lavish dining and extravagant par­ King Fahd for more financial GIFT ties. Middle Turnpike, who added that New Year’s Eve is one of — if not support for tlie U.S. military With the slumping economy and A free the — biggest nights of the year for buildup that has secured his CERTIFICATE the risks associated with drunk driv­ video rentals. country against feared Iraqi ag­ ing, a number of Connecticut resi­ Jensen said she is expecting at gression. three month Offers to the Mother of dents arc opting for a quiet night at least the same, if not a larger, Quaylc planned to visit troops -from home, according to managers of today, about two weeks before a subscription to Manchester’s 1st Born several local businesses. volume of rentals tonight as during past New Year’s Eves, noting that U.N.-imposed Jan. 15 deadline Instead of splurging money and } I the Manchester concern over drunk drivers has kept for Iraq to quit Kuwait or face slurping down drinks, many people VITTNER’S many families at home in recent the possibility of attack. arc reserving movies at local video Herald. O n e years. Th0 Assoclst^d PrQss GARDEN CENTER & stores and stocking up on wine — Jensen predicted that new WELCOMING NEW YEAR — A child street vendor in the Phillipines tries to create a loud ■ President Bush, in a Time not hard liquor — to accompany CHRISTMAS SHOP noise by blowing her paper horn today to attract buyers to different types of horns she is sell­ magazine interview published their at-home celebrations. D o z e n Please see PARTY, page 6. ing that will be used in welcoming the New Year. today, said he has a “gut feel­ ing” Saddam would relinquish Good Luck! the country he seized Aug. 2 vjj^Packag'e R o s e s after failing to secure financial ♦ and territorial concessions. But t/3 Go easy: make resolutions you can keep Iraq’s information minister, E MIDDLE TPKE 36 Oak Street Latif Jassim, said Sunday that OC •« By SUSAN EATON world,’ you arc not going to do it,” said Reid resolution. Saddam has no intention of leav­ Manchester “These are things over which they may z The Advocate Daitzman, a Stamford psychologist. “If you ing Kuwait. Offers the first parents of 1991 a bottle Resolution makers should have a clear, have no control,” Carlson said. “They OC say you arc going to take a step, you will.” thought-out idea as to why they arc making a |g promise themselves they will be successful, of Martini & Rossi Asti Spumante!! Route 83, Tolland Tpke., Manchester-Vemon Town Line 649-0791 Arc you among the many who have Psychologists suggest surrounding yourself New Year’s promise, said psychologist David - but they have no measure of what successful Teen-age hero ■ Mike Orlowski, Prop resolved to lose that paunch, quit smoking, with people who arc pulling for you and Carlson, who works in Stamford Ho.spiuil’s is. They set impossible resolutions.” 649-2623 get to the gym each day, cat right or be hap­ dies from burns using incentives that make keeping promises menial health clinic. Those concocted with Daitzman said once people suffer a setback pier beginning Jan.