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INDUSTRY SUPPORTS BUSH STIMULUS PLAN

CHICAGO -- The retail food industry expects to see benefits in the form of increased consumer confidence and spending power from the plan to stimulate the economy unveiled by President Bush here last week, industry executives told SN."The tax credit will put $1,200 to $1,600 into the economy right away for families with an average of three children because they won't have to save that money for taxes,"

CHICAGO -- The retail food industry expects to see benefits in the form of increased consumer confidence and spending power from the plan to stimulate the economy unveiled by President Bush here last week, industry executives told SN.

"The tax credit will put $1,200 to $1,600 into the economy right away for families with an average of three children because they won't have to save that money for taxes," said Jack Brown, chairman, president and chief executive officer, Stater Bros. Markets, Colton, Calif.

The plan could also boost confidence by demonstrating that the administration is taking a leadership role with the economy, Tim Hammonds, president and CEO, Food Marketing Institute, Washington, told SN.

"I think you will see some effect right away from consumers and investors in their being encouraged that there is leadership to get the economy moving at a faster pace," he said.

Bob Mariano, chairman and CEO, Roundy's, Pewaukee, Wis., said the elimination of the dividend tax, which is the centerpiece of the plan, could provide a boost for the stock market.

"I believe the proposal will have a positive impact because it will encourage people back into the market," he said. "It seems that business has bottomed out and, with cost structures in place, performance will be better, and that will have a positive impact overall on the psyche of consumers."

Thomas Zaucha, president and CEO, National Grocers Association, Arlington, Va., said he said he was encouraged that the president renewed his call for the repeal of the estate

tax .

Hammonds said the administration did not include a repeal of the estate tax because the plan as proposed could expire after 10 years, and "they did not want to put the estate tax in a position where it would again be subject to expiration."