CFOs speak out on economy, health care, wages, and benefits
by AccountingWEB on
In a national biannual survey of U.S. Chief Financial Officers (CFOs) and senior comptrollers conducted by Grant Thornton LLP, 54% of respondents say the best way to reduce the U.S. federal deficit is to reduce spending. Thirty-five percent say that there should be roughly equal measures of reduced spending and increased taxes.
With regard to the newly enacted national health care law, 49% said it will increase the pricing of their goods, 40% said it will decrease their company's growth, and 37% said it will decrease their hiring.
The top three areas of concern in terms of pricing pressure are employee benefits (75%), raw materials (47%, up from 27% six months earlier), and energy (45%, up from 21% six months earlier).
Other survey statistics include:
- 51% would not support a VAT tax, even if it directly reduced personal income tax rates
- 58% said health care reform will have no impact on hiring
- 50% said health care reform will have no impact on company growth
- 49% said health care reform will increase pricing
- 30% anticipate giving salary increases, up from 22% six months ago
- 11% expect to increase the company 405(k) match, up from 5% six months ago
- 26% expect to decrease health care benefits, down from 30% six months ago
Grant Thornton conducted the biannual national random online survey from March 22 through April 6, 2011, with 318 U.S. CFOs and senior comptrollers participating.