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SURVEY SHOWS WIDE SUPPORT FOR TAX INCREASE TO LOWER FEDERAL BUDGET DEFICIT; NATIONAL INVESTOR POLL ON ELECTION AND ECONOMY

 SURVEY SHOWS WIDE SUPPORT FOR TAX INCREASE TO LOWER FEDERAL
 BUDGET DEFICIT; NATIONAL INVESTOR POLL ON ELECTION AND ECONOMY
 CHICAGO, Oct. 5 /PRNewswire/ -- Regardless of who wins the upcoming presidential election, a tax increase is expected and apparently would be supported if the move reduces the nation's budget deficit, this according to a new Yankelovich(a)/Fidelity Investments' survey.
 In the recently completed research, a national sample of more than 450 Fidelity investors were asked their opinions on a variety of economic issues and the presidential race. Perhaps the most startling findings are in the area of taxation, where a surprising 75 percent of those polled said they'd advocate a tax hike to offset the budget shortfall.
 In addition, the majority of survey participants also would support higher taxes to fund education (64 percent), environmental programs (58 percent) and national health insurance (54 percent). Respondents indicated only marginal support for tax increases to pay for defense, social security and the "war on drugs."
 While respondents think a Democratic president is more likely than a Republican to raise taxes (34 percent vs. 4 percent), the majority (59 percent) believe higher taxes will occur regardless of which party is in power come November.
 "As a financial services company, we naturally are curious about investors' opinions on a number of economic issues," said Mary Ruth Moran, vice president at Fidelity Investments. "In particular, we are interested in how the presidential election might impact Americans' expectations for the national economy, as well as their investment and savings habits."
 Approximately 50 percent of the respondents believe that a George Bush win would have a favorable impact on interest rates, inflation and the stock market, while approximately a quarter of the respondents said Bill Clinton would have a positive effect on the same three issues. But, when they were asked which candidate would have the most favorable impact on the unemployment problem, Clinton garnered 42 percent of the responses, compared to 29 percent for Bush.
 Roughly one quarter of those surveyed expect to change their investment strategies as a result of the election. Among those investors changing their approach, 52 percent anticipate decreasing assets in certificates of deposit. Savings accounts (41 percent) and money markets (37 percent) are expected to be similarly impacted.
 More than two-thirds of those with changing investment approaches said they would increase assets in mutual funds, which is consistent with other Fidelity research on investment intentions. Also, individual stocks and tax-free mutual funds each were cited as possible investment options by 42 percent of those surveyed.
 Similar to other national polls, respondents in the Fidelity study expect Clinton to win the election (45 percent for Clinton vs. 37 percent for Bush). This is in spite of the fact that 35 percent of the survey participants identified themselves as Republican, 26 percent as Democrat and 33 percent as independent. Six percent weren't sure of their party affiliation.
 Fidelity Investments is the nation's largest mutual fund company. With more than $180 billion in assets under management, Fidelity provides services to more than 7 million individual and institutional clients.
 (a) Yankelovich Clancy Shulman Research -- Westport, Conn.
 -0- 10/5/92 P
 /CONTACT: Kim Dobbins of Fidelity Investments, 312-726-4403/ CO: Fidelity Investments ST: Florida IN: FIN SU:


KJ-LS -- LA014 -- 6432 10/05/92 09:05 EDT
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Publication:PR Newswire
Date:Oct 5, 1992
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