Masonry Magazine January 1973 Page.37
Hubert Humphrey Visits MMI Exhibit
A joint display by the State Conference of Bricklayers and the Minnesota Masonry Institute was one of the main attractions at the recent Minnesota State Fair. Actual demonstrations of laying brick proved a traffic-stopper in the AFL-CIO complex as spectators, including Sen. Hubert H. Humphrey and Gov. Wendell Anderson, viewed the progressive construction of various types of walls and arches. Pictured above with former Vice President Humphrey (from left) are Tom Richardson, executive director of MMI; Al Wedig, business agent, St. Paul Local #1 of Bricklayers and Blocklayers: Richard Hadd, journeyman, Bricklayer Local #1, and Chuck Spaulding, Laborer Local #132. Shown with a newly completed brick arch and pierced brick sceen wall are (from left) Sid Mossman, MMI president; Dick Hadd, Chuck Spaulding and Al Wedig.
Preview Script for Motion Picture
BM & PIU First Vice President James Richardson (far right) previews with George A. Miller (left), MCAA Executive Vice President, and Neal English, Executive Director of the International Masonry Institute, the script for the forthcoming motion picture on BlocBond, the new glass-fiber reinforced concrete-block bonding material by Owens-Corning Fiberglas Corp. BlocBond eliminates the need for mortar after the first course in concrete block construction. It's trowelled on both sides of dry stacked blocks and binds them vertically and laterally. The system was recently approved by the International Conference of Building Officials (ICBO).
individual who establishes such a personal retirement plan is allowed to make tax deductible contributions to the individual retirement account on behalf of the employee (which will not be currently taxable to the employee) so long as the sum of the employee's own contribution and the employer's contribution do not exceed $1,000.
The bill further provides that contributions to the individual retirement plans can be invested in a wide range of investments such as special government savings bonds which would be issued for this purpose, annuity contracts sold by insurance companies, mutual funds, stocks, and savings accounts under custodial arrangements.
(B) With regard to contributions a self-employed individual will be allowed to make on his own behalf to a qualified plan (H.R. 10 plan), the maximum deductible amount will be increased to 15% of earned income up to $7,500 a year. The bill purports to insure that a self-employed person will provide a set-aside of at least 7.5% for his employees if he is to take the maximum deduction of $7,500 for himself.
(C) In an attempt to equalize the treatment of proprietary employees of closely held corporations to that of self-employed people, the bill provides that contributions on behalf of corporate proprietary-employees who 1) own at least 2% of the stock and 2) together account for at least 25% of the accrued benefits of all employees under the plan are limited to exactly the same deduction limitations as apply to self-employed people-namely, 15% of earned income with a maximum annual ceiling of $7,500.
As in the case of self-employed individuals, the base for computing deductible plan contributions on behalf of such proprietary employees is limited to the first $100,000 of their earned income.
The foregoing is by no means an attempt to render a complete analysis of S. 1179 or, more specifically, of the Senate Finance Committee's report on it. Rather, it is an attempt to elaborate on some of the more significant aspects of this bill.
WORK PROGRAMS
As you know, Section 117(a) of the Internal Revenue Code provides that gross income of an individual does not include an amount received as a scholarship at an educational institution or as a fellowship grant.
However, what are the tax rules regarding work programs required by universities as a condition to receiving a degree? The practice seems to be that there is usually one work period of ten weeks each year. The university assists the students in securing work period positions by advising them and trying to help find places of employment. The work periods are not supervised by the university, and the employers are requested to complete a questionnaire.
The students are paid the same wages as are received by other employees with the same background and experience and doing similar work. Are these wages exempt from taxation as are amounts received as a scholarship or fellowship? Are these wages subject to income tax withholding by the employer?
The IRS has advised that the entire amounts paid to the students are compensation for services. The amounts so received are not excludible from their gross income and are wages subject to income tax withholding. Rev. Rul. 73-218.