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Strategies & Market Trends : rat's nest -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (181)	1/29/2001 11:13:40 AM
From: AugustWest	Read Replies (1) \| Respond to of 844

Financial Professionals Support Multiple Federal Actions to Reverse Economic Downturn BETHESDA, Md., Jan. 29 /PRNewswire/ -- America's corporate CFOs and treasurers believe that a combined approach that cuts the marginal income tax rate, continues the use of the budget surplus to pay down the national debt, and further reduces interest rates -- is necessary to fend off a recession, according to a survey by the Association for Financial Professionals (AFP, afponline.org ). Overall, financial officers overwhelmingly support these multiple Federal actions to improve the prospects for their organizations and the U.S. economy. Ninety-eight percent support the further use of monetary policy to lower interest rates; 95 percent support the use of budget surpluses to reduce government debt; and 89 percent support a reduction in marginal income tax rates. Percent of Respondents Who Believe Implementation of Economic Policies Are Important Over Next Year Not Somewhat Very Most Important Important Important Important Important Further use of monetary policy to lower interest rates 2% 9% 31% 38% 20% ====================98%======================== Use of budget surpluses to reduce government debt 5% 19% 38% 25% 13% ====================95%======================== Cuts in marginal tax rates 11% 23% 30% 25% 11% ====================89%======================== More than three-quarters of the respondents felt that each of these policies would have a positive effect on the overall U.S. economy. More than half felt that cuts in marginal tax rates and a further loosening of monetary policy to drive down interest rates would also be positive for their own organizations. In all cases, these actions were seen as more important to the overall health of the economy than to the companies represented by the respondents. However, financial officers do believe that lowering interest rates would have the most direct impact on their organizations. Effects of Government Policies On Respondent's Organizations and the U.S. Economy (A) Positive or Strong Effect on Respondents' Organizations (B) Positive or Strong Effect on U.S. Economy * Reduction in marginal income tax: (A): 59% * Reduction in marginal income tax: (B): 78% * Use of budget surpluses to reduce the national debt: (A): 40% * Use of budget surpluses to reduce the national debt: (B): 81% * Further loosening of monetary policy to drive down interest rates: (A): 83% * Further loosening of monetary policy to drive down interest rates: (B): 93% Nearly one half (44 percent) of the more than 1,000 AFP members who responded to the survey agreed that the recent downturn was an indication that a recession would occur. Thirty-eight percent disagreed with the view that we would see a recession in the next year. AFP's Economic Policy survey was distributed to all of the association's members on January 12, 2001. The Association for Financial Professionals in Bethesda, Maryland, has grown in the past 20 years into a community of more than 14,000 individuals representing a broad spectrum of financial disciplines. AFP turns knowledge into performance by supporting members throughout all stages of their careers with research, continuing education, career development, professional certifications, publications, representation to key legislators and regulators, and the development of industry standards. SOURCE Association for Financial Professionals -0- 01/29/2001 /CONTACT: Reese A. Nank, APR, VP, Communications and Marketing, of the Association for Financial Professionals, 301-907-2862, or rnank@AFPonline.org; or David Harrison of Imre Communications, 410-821-8220, or davidh@imrecommunications.com, for the Association of Financial Professionals/ /Web site: afponline.org CO: Association for Financial Professionals ST: Maryland IN: FIN SU: ECO EXE * end of story *