Printer Friendly

SENIOR FINANCIAL OFFICERS RANK PERMANENT INVESTMENT TAX CREDIT FIRST AMONG NEEDED TAX CHANGES; CAPITAL GAINS CUT PLACES FIFTH

 SENIOR FINANCIAL OFFICERS RANK PERMANENT INVESTMENT TAX CREDIT
 FIRST AMONG NEEDED TAX CHANGES; CAPITAL GAINS CUT PLACES FIFTH
 WASHINGTON, March 18 /PRNewswire/ -- Senior financial executives of manufacturing companies surveyed by the Manufacturers' Alliance for Productivity and Innovation (MAPI) rank a permanent investment tax credit as the tax policy change most likely to improve the long- run performance of U.S. business. More rapid depreciation, lower corporate income taxes, and elimination of double taxation of dividends virtually tied for second choice. A proposal to lower the capital gains tax rate ranked a distant fifth. MAPI calls a permanent investment tax credit the "clear choice" for encouraging significant additional capital investment.
 "MAPI Survey on the Business Outlook -- March 1992," reports that the 131 surveyed senior financial executives are "very upbeat" regarding the business outlook -- a drastic change in attitude over the survey completed three months ago. Orders, shipments, and backlogs are all showing signs of improvement, and the decline in profit margins seems to be abating. MAPI cautions, however, that while the survey indicates that business activity is picking up, capital spending plans are being restrained by a great deal of excess production capacity.
 MAPI asserts that further reductions in long-term interest rates are necessary to encourage significant additional capital investment. Seventy-four percent of those surveyed believe long-term corporate bond rates must fall 100-200 basis points (1-2 percentage points) by mid-year to stimulate significant additional investment spending over the next several years.
 Some of the other survey results are as follows:
 -- There has been substantial improvement in new orders and orders for exported products, with the most dramatic change being a reduction in the number of respondents expecting new orders to decline.
 -- Only 16 percent of respondents report that their shipments will decline in the next quarter, compared with 31 percent of those surveyed three months ago.
 -- There has been a sharp rebound in the survey index relating to manufacturing backlogs.
 -- Sixty-three percent of those surveyed note that inventories have declined relative to a year ago.
 -- Capacity utilization rates at manufacturing plants fell from December 1991 to March 1992, with reductions occurring primarily among those plants that had high utilization rates three months ago.
 -- Businessmen remain cautious about investing in plant and equipment and funding research and development.
 Copies of "MAPI Survey on the Business Outlook -- March 1992" are available by contacting MAPI: 1200 18th St., N.W., Washington, D.C. 20036; 202-331-8430.
 MAPI, the Manufacturers' Alliance for Productivity and Innovation, is a policy research organization with approximately 500 member companies including leading producers in heavy industry, automotive, electronics, precision instruments, telecommunications, computers, chemicals, oil and gas, aerospace and other high- technology industries.
 -0- 3/18/92
 /CONTACT: Peggy Morrissette of MAPI, 202-331-8430/ CO: Manufacturers' Alliance for Productivity and Innovation ST: District of Columbia IN: FIN SU:


SB -- DC004 -- 9136 03/18/92 10:11 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 18, 1992
Words:474
Previous Article:NATIONAL CAR RENTAL SYSTEM NAMES EXECUTIVE VICE PRESIDENTS, CFO CONSOLIDATES TOP MANAGEMENT TEAM
Next Article:NATIONAL LIQUIDATORS OF FT. LAUDERDALE TO HOLD LIVE BOAT AUCTION ON SATURDAY, MARCH 21
Topics:


Related Articles
National Realtors make proposals to candidates.
CAPITAL HOLDING REPORTS THIRD QUARTER OPERATING EARNINGS OF $.75 PER SHARE; FOR NINE MONTHS, $2.42 PER SHARE, UP 5.2 PERCENT
Budget proposals focus on middle-class tax cuts.
SBLC: Helping Main Street and the Industrial Parks.
SBLC Asks: What Will Help Small Business?
SBLC Says: Small Business and the Consumer Can Lead Us on the Road to Recovery.
Taxpayer behavior and government policy.
Corporate tax reform: listening to corporate America.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters