Masonry Magazine August 1987 Page. 42
WASHINGTON WIRE
continued from page 18
ECONOMISTS CAN SEE ANOTHER BOUT OF INFLATION some way down the road. To be sure, everything is calm and serene on the inflation front for now. Commodity prices have come off the boil, dropping as quickly as they rose. Further, there is ample unused capacity around to meet any possible demand. And negotiated wage increases still continue very moderate, on the average. But some potential for trouble does exist in 1988, if not later this year. Prices of imports will continue to advance, the result of the lower dollar, which is forcing numbers of foreign companies to post those higher prices. American firms will tag along under this umbrella with hikes of their own. And, this year, oil and farm prices will not be declining as during 1986.
What's more, labor markets are already tightening in parts of the U.S. as the jobless rate approaches full employment. Higher corporate profits this year will spur union demands.
ADMINISTRATION OFFICIALS WANT TO ENCOURAGE CREATION of large banks to compete better against foreign institutions that now dominate finance. A Treasury plan would permit acquisition of banks by industrial companies, which alone are in position to provide the multi-billion dollar "pools" of capital that it will will take for the U.S. banking system to match foreigners.
THE TRADE BILL KEEPS MOVING AHEAD, but it still faces a rocky road. The big question is whether or not a measure will ever be signed into law. The White House clearly dislikes the versions pending before the Congress.
It has drawn up a 30-page list of provisions that it finds objectionable in the House-passed draft, which leans very decidedly toward protectionism; that draft forces the President to hit back at nations with big surpluses. Discouraging reporting rules about investment by foreigners are included. The Senate version of the bill doesn't contain either of these provisions. But it is fraught with special-interest amendments that disappoint Reagan.
A critical legislative showdown is due in a House-Senate conference. That probably won't come until sometime this fall. It's a toss-up whether Reagan will sign any bill.
CONGRESS IS NOW FOCUSING ON SPECIFIC EXCISE HIKES to cut the deficit. But increasing those taxes is sparking a major controversy on Capitol Hill, though it still isn't clear that the President will accept higher gasoline taxes or those on cigarettes, beer, wine and liquor-so-called "sin" taxes. Excise taxes are very regressive, hitting low and middle-income folks most. But they also hold the potential for generating big amounts of tax revenue. For example, a 10-cent boost in gas taxes would raise an extra $10 billion.
The controversy is making Congress look at other revenue-raisers. One plan would hike estate and gift taxes, which affect high-income people. Another idea is taxing publicly-traded limited partnerships in the same way as corporations.
There is a fairly good prospect that some tax increase will be voted. Congress needs to raise as much as $20 billion in extra revenue to meet the reduced budget-deficit targets.
Bid That Job That Was Once Out Of Reach!
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Experts estimate that 50% of America's chimneys do not meet National Safety Standards. That's an awfully large market potential if you are a business which offers the Ahrens chimney relining process. With Ahrens, you simply pour a strong, new flue inside existing chimneys.
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Ahrens provides their dealers with excellent support in training, advertising, and marketing programs. We even have WATS lines for dealer call ins and our service is second to none.
It's no wonder Ahrens is the fastest growing chimney relining process in the world. If you want to know more about what Ahrens can do for you, call or write now.
AHRENS CHIMNEY TECHNIQUE INC.
2000 Industrial Ave.
Sioux Falls, SD 57104
(605) 334-2827
Call now for a VHS video demonstrating the Ahrens process and see what it can do for your business.
1-800-843-4417
42 MASONRY-JULY/AUGUST, 1987