Union City Rotary Club - Weekly Bulletin & News

Today, everyone has a general idea of new laws put on the books by our elected officials in Congress and Senate during 2010, some of the most significant tax legislation, however, was enacted in the waning days of the 111th Congress.

The 2010 Tax Relief Act provided, among other things, a two-year extension of the individual tax rate structure, including the maximum tax rates on qualified dividends and long-term capital gains.

Two of our local CPA’s, Jim Thompson of Thompson McConnell CPA Firm, and Al Creswell of Alexander Thompson Arnold Accounting Firm will vacate their respective Friday seats and discuss many of the individual and business provisions of these bills.

Long Time Rotary Member Jim Thompson received his BS Degree from the former Memphis State University, and has been practicing in the CPA profession since 1971 . He is married to Rosalie Thornton Thompson, they have two sons, Scott who lives in Washington DC and Bill who now lives in Knoxville, and three grandchildren, Madison, Regan, and Sophie.

Al, also a long time Rotarian, is a UTM Graduate, and has been CPA practicing since 1977, he has been a partner with ATA since 1981. He and his wife Michelle Hayslett Creswell have one son, and daughter-in-law, Phillip and Katie and one grandson, Preston.

Next week, to be announced.

THE HISTORY OF U.S. TAXATION

By A.J. Powers and Company

100 years ago there was no federal income tax as we know it today.

First came the Revenue Act of 1813-Taxes were imposed when and as needed. Pre 1862 Government funded itself through collected import duties and sold public lands. July 1, 1862 Congress formed Office of Commissioner of Internal Revenue to meet fiscal demands of the Civil War. After the war, tax efforts declined and in 1872 the tax was repealed. In 1894 Congress revived the tax; however the following year the Supreme Court ruled the tax to be unconstitutional.

In 1913 the 16th Constitutional Amendment introduced our first Income Tax by giving Congress the authority to enact tax legislation. The 16th Amendment was ratified by 40 states, shortly thereafter the amendment was supported by two other states. Further the matter was upheld by the Supreme Court in 1916 and has since been consistently upheld by the Courts.

WWI generated heavy fiscal demands and increased tax efforts causing rates to spike to 77% in 1918. From 1916-1951 new tax legislation was enacted every year with rates as high as 77% in 1918 and as low a 24% in 1929, followed by increases to finance our national deficit during the Great Depression.

During WWII tax legislation created the first payroll withholding tax and estimated tax payment requirements.

Initially, the methodology used to determine tax liability was very simple. It was almost like a flat tax rate. The rate was 1% for the first $3,000, and a 6% surcharge for an income of over $500,000. Many people agree that a flat tax rate would solve most of our country’s financial problems today.

Last week, with Union City Rotary growing steadily for the year, President Houston and President Elect Creswell brought the installment of several new members up-to-date. Among those receiving their membership packets and challenges as members of U.C. Rotary and Rotary International were, Andrew Blair, Will Wade, Matt Russell, Rance Barnes, Keith Riley, and Donny Bearden. There are more new members who were not present Friday they will be installed at a later date.

Anna Graham was on hand to introduce the scheduled program, which consisted of several students, of Union City Elementary and Middle School, demonstrating a new program the schools are participating in, know as The First Lego League.

Debra Lawerence, First Grade Teacher, introduced the younger group consisting of first and third grade students. These students displayed posters which they had entered in competition with other schools across Tennessee, showing the advantages of Biomedical Engineering and how it has effected the medical field, concerning hearing, eyesight, and even artificial hearts. They also displayed models of medical tools built from Lego Logs.

David Houston and Lee Ussery introduced the group of fifth, sixth, and seventh grade students participating in the FLLI Team. This group brought with them lego models a bit more sophisticated, consisting of a Lego Robot for one, which they had entered in State Competition. They explained, this robot had to be built from scratch, using a computer they had to program the robot to follow a route on a standardized mat, and perform specific chores which had been forwarded to them by the committees controlling the competition. Also there was a Robot Arm displayed, which the students had built, to specifications. This Arm was a symbol of Medical Technology, designed for muscle and bone rehabilitation in humans.

It was reported that the FLLI Program is designed to encourage students in the recognition of Science and Technology, inspiring future scientists and engineers, also building self confidence knowledge, and life skills.

COMING ATTRACTIONS

Jan. 21 -Thomas Payne, Ph.D. - Global Economy

Jan. 28 - TBA

Feb. 04 - TBA

Birthdays

Jan. 15 - David Critchlow, Jr.

Jan. 18 - Eddie Hill

Jan. 19 - Julius Falkoff

Anniversaries

Jan. 19 - Nick and Emily Hall

QUOTES TO REMEMBER...

"I’ve never had major knee surgery on any other part of my body".

(Winston Bennett Univ. Ky. basketball forward)

"Outside of killings, Washington has one of the lowest crime rates in the country."

(Mayor Marion Barry, Washington, DC)

"It isn’t pollution that’s harming the environment. It’s the impurities in our air and water that are doing it"

(Al Gore)

"I love California. I practically grew up in Phoenix".

(Dan Quayle)

Basketball 2010-11

Tonight

Union City hosts Bradford

So. Fulton hosts Trenton

OCCHS @ Crockett Co.

UTM

Jan. 15 Men @ Jacksonville St.

Jan. 15 Women @ Jacksonville St.

Return to Weekly Bulletin News Index page.