March 5, 1992 The Presidential campaign is well underway and the Republicans and Tsongas and Clinton in the Democratic camp are attempting to woo the middle class. You can expect to see tax proposals aimed to benefit this group which as a voting bloc determines elections. Two items merit attention here: For the first time there has been a new definition of middle class which will primarily benefit California and New York; that is, the middle class has been proposed by President George Bush to be a joint household income of up to $150,000. This has been done to note that with one third of the country living in these two states there is an acknowledgement that not only is there a higher cost of living but also higher average salaries; i.e. a police officer in Florida earns $24,000 per year and $45,000 in New York. The probable cynical political reason behind such a Republican proposal is that while the Northeast has been ceded to the Democrats, they`ll need California to win. For most of you this proposal will mean one to two thousand dollars of taxes saved. Uncle George has by executive order, in order to immediately pump several billion dollars into the economy, changed the withholding tables to transfer approximately $300 of your 1992 tax refund into increased take home pay now; about $6 per week. There are new tax tables that reflect this. We are not going to call you and notify you of this reduced withholding unless you specificly call us and request it. We will, however, use the tables for any new calculations that we may do in the usual course of business. Shining Star Once in a while we see what is clearly a unique event in our horizon. Such an event started last January in the form of a television talk show so informational and topical and yet so warm. I am talking about Charlie Rose on Channel 13, WNET at 11 P.M. to Midnight, weekdays. It`s a cross between Dick Cavett and Meet the Press. I urge you to see it as required viewing in order to obtain perspectives not otherwise available. Let me know what you think of it. Refinancing Now is the time, if you haven`t already started to, to inquire about refinancing your mortgage to a 15 year mortgage. Never before have rates moved from such high rates to such low rates in such a short period of time. The savings over 15 years could be astronomical. You might find that after refinancing and adding all the closing costs to the new mortgage, so that you are not out of pocket for the refinancing costs you are paying, one to two hundred dollars less per month and will have paid off the mortgage in one half the time. The savings? How about the cost of your mortgage! But remember, don`t pay points, they`re not deductible on a refinancing! Continuing Education & Speeches Recently I attended a course on Elder Law, Healthcare and Financial Planning for the Elderly, as well as addressed the New York City Correction Captain`s Association on Personal Financial Planning. If you have any questions, on these or any other tax or financial matters, please call us.