Masonry Magazine July 1973 Page. 34
Badger Dynamics Builds in Wisconsin
Washington Wire
(Continued from page 32)
With profits in a steep climb, this should bring soaring dividends. On the average, using the 1968-72 base period, companies paid out dividends amounting to 53.8% of after-tax earnings. By contrast, in this year's first quarter, firms paid out only 42.9% of their burgeoning earnings.
Thus, on the basis of first-quarter figures, dividends can rise now by about 25% if all firms restore their historical payout ratios. Dividend income would swell by $7 billion.
ACTION TO ELIMINATE TAX SHELTERS won't take effect until next year. Congress plans to wipe out some shelters, used in farming and real estate, that allow the conversion of ordinary income into lower-taxed capital gains. The House Ways and Means Committee will write a tax-reform bill this fall. Businessmen had feared that talk of shelter changes may limit investing now. They note that a Treasury-backed bill calls for elimination back to May 73.
But committee leaders have promised decisions would not be retroactive. Ending of any shelters wouldn't affect the deductions for the 1973 taxable year unless an unusually large volume of transactions occurs in the period ahead.
A TIGHTENING OF RULES governing executive compensation is due soon. The Cost of Living Council views the existing regulations as much too lax. The rules have demonstrated that they have not produced equitable results. They have permitted whopping, highly publicized executive salary increases. Some auto magnates, already among the country's highest paid businessmen, have received salary hikes of 100% and 200%, in times of supposed pay curbs.
Regulations now under study will focus on these key issues:
* The question of what is an appropriate employee unit. The big units now permitted give broad scope for big increases.
* The question of how new base years should be determined.
* Possible spill-over from salaries into bonus arrangements.
* Requirements for reporting executive pay hikes to the COLC.
CONGRESS SEEMS CERTAIN to pass new minimum-wage legislation this year. But threat of a Nixon veto makes it unclear whether it will ever become law. The House has approved a bill hiking the minimum to $2.20 an hour in 1974. Some 4 million workers would get an immediate pay increase under the bill. A chain-reaction effect would force raises for persons in higher-paid jobs, who will insist on keeping something like current differentials in scales.
Attempts by House Republicans to soften the bill were beaten back. Passage of a GOP substitute last year effectively killed the whole bill. The Senate seems certain to approve a bill close to the House version, probably this summer.
Photographed at the recent Badger Dynamics groundbreaking are the principals of the new firm and one of the machines which will be manufactured at the plant now under construction. From the left are Al Payne, service manager seated on the Badger 6045 forklift; Hap Mueller, Badger president; Bob Siderits, vice president, and Rudy Valentino, sales manager. The facility is in Port Washington.
Advertisers Index...
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A
Anchor Manufacturing Company 29
C
Clipper Manufacturing Co., Inc.
Norton Construction Products Div. 4th Cover
E
Robert G. Evans Company (Target) 17-20/27
F
Felker Operations, Dresser Industries, Inc. 10
G
Getman Brothers Manufacturing Company 27
Giant Industries 30
Goldblatt Tool Company 25
I
International Masonry Institute 3rd Cover
M
Mayco Pump Corporation 28
Morgen Manufacturing Company 8
N
National Concrete Masonry Association 4
O
Oury Engineering Co., Div. of Harsco Corp. 26
Owens/Corning Fiberglas Corp. 3
P
Perlite Institute 16
Pittsburgh Corning Corporation 6
Process Solvent Company 28
S
Super/Cut Engelhard 12
Stone Construction Equipment, Inc. 2nd Cover
W
Western Products 13
34
masonry • July, 1973