Masonry Magazine June 1984 Page. 14
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WASHINGTON WIRE continued
Specialists detect what they fear may be tell-tale danger signs. The feeling is by no means unanimous, but it is shared by many top analysts. The rise in prices has already started to accelerate, as the indexes show-in part, a normal by- product of the current, typical upturn in the economy. Some industries are already near capacity-paper and electrical components. Recoveries abroad, by lifting de- mand for commodities and bidding up prices, have added to the pressures. And now labor is out to beef up wage packages.
The acceleration in the price rise has been modest, though clear, to date. It has been especially apparent in basic industrial metals, paper, and food. Many purchasing agents report that they are seeing more price increases these days than any time in the last three years. They also discern another important sign: Delivery times are lengthening.
THE RATE OF CLIMB IN THE INDEXES has been 5% in the last half-year. This compared with the 34% that had characterized the six months preceding. And that, in turn, was a very sharp drop from the 12% of 1981, just before record-high interest rates and the oil glut broke the back of inflation. Some say that the inflation rate will stay at 5% for the rest of this year. But quite a few can see 5%% or 6%. And Nobel Prize-winner Milton Friedman, who is an adviser to the President, looks for a 7% rate by the last quarter.
He could turn out to be wrong. But the possibility that inflation could get that serious should be kept in mind.
THE BASIC FIRST-CLASS MAIL RATE is likely to be raised once again, either later this year, after the election, or in the early months of 1985. The one-ounce rate would probably rise to 23 cents... postcards to 15 cents.
THE TAX HIKES VOTED BY CONGRESS, aimed at cutting deficits, affect most Americans to some degree. Here's a listing of the most far-reaching:
* Telephones: The tax of 3% on local and on long- distance calls, once due to end by 1986, now remains through 1987.
* Fringe benefits: The bar that stops Internal Revenue's taxing of existing fringes is extended by the new law.
* IRA's: Once fully effective, a one-earner couple could deduct $4,000 a year towards Individual Retirement A/Cs.
* Tax shelters: Key provisions would curb really "abusive" shelters, especially those with partner- ship arrangements.
* Business cars: Depreciation and investment credits for autos bought by businesses will be limited in the future. These and other items will raise $48 billion through 1988.
Testing
The husband told the judge he wanted a divorce because his wife called him a lousy lover. "You want a divorce just because your wife called you a lousy lover?" the judge asked incredulously.
"No." replied the husband. "I want a divorce because she knows the difference."