Masonry Magazine December 1985 Page. 24
WASHINGTON WIRE
Prices actually fell, overall. Indeed, there's a chance they will creep up slightly in the year ahead-the Consumer Price Index being a strong bet to climb a little faster than in 1985, when the increase was 3%-plus. But that would be quite a good showing, overall, for this late in a business cycle.
The corporate-profits outlook is subject to a similar scattering of viewpoints among analysts in both Washington and in the private sector. Some forecasters look for increases of as much as 20% in quarters to come. They reason that even moderately stronger sales will yield relatively more in the way of net income, because of further healthy gains in productivity. But other economists see lower earnings as the competition from producers here and abroad makes manufacturers and retailers cut prices-and margins. But, again, it is the middle point of view that reflects the consensus. Profits will move up over the next 9 or 12 months by something like 5-10%.
Doubts about progress being made in cutting the deficit still abound, despite Congress's efforts to rig a system that would do it automatically. Skeptics point out that an earlier effort the budget act passed in 1976-didn't do the job; it didn't prevent the growth of red ink to $200 billion. Nothing can ever compensate for lack of will on the part of the lawmakers-a hesitancy to make the often unpopular political decisions that are needed.
There are no assurances that the needed cuts will be made under the latest system. Few either in industry or Wall Street are counting on budget balance.
The budget now in preparation at the White House points up problems that the Gramm-Rudman measure to eliminate the deficit inherently possesses. The target is to carve $37 billion from fiscal 1987, beginning next October. But Social Security, debt interest and past contract commitments are exempt. (The President also wants to exempt defense spending but Congress says no.) So, where must the slashes come from? The budget-makers at the White House and in Congress face some tough-maybe impossible-choices in the months ahead.
Tax reform has been set back by the battle over cutting the deficit, to the point where even its prospects in the House are uncertain this fall. There just is no longer time for the Senate to act, even if the House does. Anyway, there are still several major and thorny questions to be resolved. To begin with, there's the maximum income-tax bracket rate; should it be cut to 35% (as Ronald Reagan says) or can it be more (as many Democrats insist)? Or take the state/local tax deduction, perhaps the stickiest proposal of all: Can Ways and Means Committee chairman Dan Rostenkowski work out a compromise still acceptable to high-tax-state lawmakers without losing too much revenue? And there are many other issues important to small but very powerful groups.
Thus, the legislators are subject to the pressures from lobbyists. At times, this is leading to tax changes that mean net losses in revenues, making a growing number of one-time supporters in business and Congress-wonder whether the kind of tax-reform package that may pass is worthwhile. So, there are doubts about final enactment of any tax changes even in 1986. Some observers on Capital Hill are putting the odds at no more than 50-50.
NEW ADJUSTABLE WALL REINFORCING
AA 575 Adjustable
Econo-Cavity-Lok III
AA 675 Adjustable
Econo-Cavity
Blok-Trus III
Outstanding features Ladder or Truss style Send for free brochure.
* Reinforcing for block back-up.
* Adjustment up to 1½" for face wythe.
* A positive connection between wythes
even when coursing is out of level.
* Transfers wind loads from face to back-up.
* Anchors rigid insulation in place.
* An easy system to install and handle.
* Tension and compression restraint.
AA
WIRE PRODUCTS COMPANY
6100 S. New England Ave., Chicago, IL 60638
Phone: (312) 586-6700
Available in Canada from: BLOK-LOK LIMITED
30 Millwick Dr., Weston, Ontario Tel. Area (416) 749-1010
24 MASONRY-NOVEMBER/DECEMBER, 1985