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CFOs beef up expansion plans, see new taxes as biggest threat.

As the business recovery gathers steam, chief financial officers have become more aggressive in planning for their companies' capital spending. According to a survey of 1,000 CFOs conducted by Robert Half International, many perceived a need for capital investments to keep their companies competitive.

Over one-third (36%) of the CFOs polled said their companies would be either very aggressive or somewhat aggressive in spending or expanding operations in the next 12 months. Another 35% said their companies would be somewhat cautious and 26% said their companies would be very cautious. The remaining 3% had no opinion.

When asked what actions would cause significant harm to business prospects in the next 12 months, 33% of the CFOs cited higher taxes as the greatest threat and another 30% mentioned higher interest rates.

Thirty-two percent of the CFOs said a gasoline tax would be the most effective tax option to reduce the national deficit. Another 26% mentioned a national sales tax and 16% cited a value-added tax on each step of manufacturing and distribution. The remaining 26% had no opinion.
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Jun 1, 1993
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