b"7000 Power8Light Bldg.,KansasCity, Missouri64105 May,1975 TAXREDUCTIONBILLOF1975 TheTaxReductionBillof1975wassignedintolawbyPresidentFord onMarch29,1975.Someofthemajorprovisionsofthenewtaxbillaffectingrebatesof1974taxesandchangesinthelawforthisyear'staxpayable in1976are: 1.Rebates.Rebatesof10%of1974taxesupto$200 maximum.Theminimumrebatewouldbeeither$100orthe actualtaxpaidiflessthan$100.Afteradjustedgross income(incomebeforedeductionsandexemptionsaresubtracted)reaches$20,000,therebategraduallyphasesdown to$100forthosehavinganadjustedgrossincomeof$30,000 ormore. 2.1975TaxCuts.Everytaxpayer,regardlessofincome, cansubtract$30from1975federalincometaxpayableonor beforeApril15,1976foreverypersoninhisfamily- the taxpayer,thetaxpayer'sspouseandeachdependent.Forexample,afamilyoffourwouldgeta$120taxcut.Thistaxcredit isinadditiontopresentexemptionsanddeductionsandis applicableforoneyearonly. 3.StandardDeduction.Thepresent15%standard deductionisincreasedto16%.Theminimumdeduction,which canbetakennomatterhowlowtheincome,isincreasedfrom $1,300foreveryoneto$1,600forsinglepersons,$1,900for couples.Themaximumdeductionincreasesfrom$2,000for everyoneto$2,300forsinglepersons,$2,600forcouples. 4.SocialSecurityPayment.RecipientsofSocialSecurity, railroadretirement,welfareaidtoblind,agedanddisabled receiveaflat,one-time$50payment. 5.HomeTaxCredit.Thebuyerofanynewhomethatwas eitherunderconstructionorunoccupiedasofMarch25may subtract5%ofthepurchasepricedirectlyfrom1975taxes owed,upt.oamaximumof$2,000.Thisprovisionappliesto homes,condominiums,cooperatives,mobilehomesandanyother single-familydwellingthatcanqualifyasthetaxpayer'sprincipalresidence.ThetestiswhetherthehousewaseveroccupiedpriortoMarch25.IfconstructionactuallystartedMarch 26orlaterthecreditdoesnotapply.Thetaxbenefitapplies ifthenewhomeispurchasedbetweenMarch15andDecember31, 1975."