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 CLEVELAND, Feb. 18 /PRNewswire/ -- Businesses can safely assume that tax rates will increase and deductions will decrease -- regardless of the outcome of President Clinton's proposed economic program, the certified public accounting firm of Seitz, Kate, Freiberg & Medve, Inc. (SKFM), is advising its clients.
 But tax planning is difficult right now because the final tax law is likely to differ from Clinton's proposal, SKFM says. Moreover, tax legislation is historically superseded and changed by further tax proposals and amendments, resulting in constantly changing tax laws.
 Despite the uncertainty over the final outcome of the President's proposal, SKFM is advising its clients to:
 -- Shop now for any needed equipment, but wait to buy. That way, businesses will be able to take quick advantage of investment tax credits once they are passed. The proposal provides for two kinds of investment tax credits, a temporary one for large companies and a permanent one for smaller enterprises.
 -- Re-examine business meal and entertainment policies. The President's plan would reduce the deductible portion of such costs from 80 percent to 50 percent.
 All business and individual taxpayers would be affected by the proposal, according to SKFM. Individuals with taxable incomes under $30,000 may get tax relief, but they also are likely to incur higher costs as companies pass through their higher costs.
 SKFM predicts that some changes are likely in the second half of 1993 and that others, including the investment tax credits, may be retroactive to January 1, 1993. Most of the final legislation would not be in place until 1994, SKFM estimates.
 SKFM has helped closely held businesses in Northeast Ohio solve problems and meet obligations for more than 47 years.
 -0- 2/18/93
 /CONTACT: Kathleen Seitz, CPA, Managing Partner, or Drew K. Kate, CPA, Partner, both of Seitz, Kate, Freiberg & Medve, Inc., 216-446-0900; or Tom Andrzejewski or Leslie Kay, both of The Oppidan Group, Inc., 216-771-9988, for Seitz, Kate, Frieberg & Medve, Inc./

CO: Seitz, Kate, Frieberg & Medve, Inc. ST: Ohio IN: FIN SU: ECO

BM -- CL020 -- 8043 02/18/93 15:53 EST
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Publication:PR Newswire
Date:Feb 18, 1993

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