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Eugene

(61,974 posts)
Mon Jan 28, 2019, 10:01 AM Jan 2019

$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

Source: Reuters

WASHINGTON (Reuters) - The Trump administration’s $1.5 trillion cut tax package appeared to have no major impact on businesses’ capital investment or hiring plans, according to a survey released a year after the biggest overhaul of the U.S. tax code in more than 30 years.

The National Association of Business Economics’ (NABE) quarterly business conditions poll published on Monday found that while some companies reported accelerating investments because of lower corporate taxes, 84 percent of respondents said they had not changed plans. That compares to 81 percent in the previous survey published in October.

The White House had predicted that the massive fiscal stimulus package, marked by the reduction in the corporate tax rate to 21 percent from 35 percent, would boost business spending and job growth. The tax cuts came into effect in January 2018.

“A large majority of respondents, 84 percent, indicate that one year after its passage, the corporate tax reform has not caused their firms to change hiring or investment plans,” said NABE President Kevin Swift.

-snip-

BUSINESS NEWS JANUARY 28, 2019 / 12:13 AM / UPDATED 7 HOURS AGO


Read more: https://www.reuters.com/article/us-usa-economy-investment/1-5-trillion-u-s-tax-cut-has-no-major-impact-on-business-capex-plans-survey-idUSKCN1PM0B0

17 replies = new reply since forum marked as read
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$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey (Original Post) Eugene Jan 2019 OP
I am very surprised Mister K Jan 2019 #1
Of course. sandensea Jan 2019 #2
Or it should have been done like Kamala said yesterday, watoos Jan 2019 #3
Exactly.... And President Obama covered just that fact groundloop Jan 2019 #7
Of course not. BumRushDaShow Jan 2019 #4
This about sums it up .........................Bloomberg arcticle turbinetree Jan 2019 #5
We're going to wish we had that revenue when Trump crashes the economy IronLionZion Jan 2019 #6
The "trickle down theory" has been proven time and again that it doesn't work LiberalLovinLug Jan 2019 #8
What a load of brown smelly.. Maxheader Jan 2019 #9
Theodore Roosevelt used the term whe he was President. Scruffy1 Jan 2019 #11
Demand is the only thing that drives capital expansion. Scruffy1 Jan 2019 #16
Are yachts, private planes, hookers, and coke considered capex? n/r Yavin4 Jan 2019 #10
Yes, Yes, No, No htuttle Jan 2019 #12
What if I buy a brothel and put it on my cocoa plantation? n/t Yavin4 Jan 2019 #13
If you use it to entertain visiting customers, you can deduct 100% of the operating costs htuttle Jan 2019 #14
Wimpy lied, duforsure Jan 2019 #15
Surprise surprise Yo_Mama_Been_Loggin Jan 2019 #17

Mister K

(450 posts)
1. I am very surprised
Mon Jan 28, 2019, 10:08 AM
Jan 2019

Companies like spending money on things they don't need and reduce shareholders profits (end sarcasm).

It should have been designed as a credit (reduction of taxes) on spending (investing in new products) or hiring full time workers.

 

watoos

(7,142 posts)
3. Or it should have been done like Kamala said yesterday,
Mon Jan 28, 2019, 10:30 AM
Jan 2019

give $500 a month to the working class and pay for it by tearing up the tax cuts for the rich scam.

You can't make a silk purse out of a sow's ear. Trump's tax cuts for the rich giveaway was another example of failed supply side, trickle down, voodoo economics. A robust economy is all about demand, about working class people having the money to circulate it.

groundloop

(11,537 posts)
7. Exactly.... And President Obama covered just that fact
Mon Jan 28, 2019, 01:21 PM
Jan 2019

Give lower and middle income people a tax cut or credit and that money will go into the economy immediately. Businesses will benefit from increased demand. Give the rich a tax cut and the Caymen Islands will benefit.

BumRushDaShow

(130,043 posts)
4. Of course not.
Mon Jan 28, 2019, 10:36 AM
Jan 2019

A big giveaway to corporate America. The first year they bought back their own stocks and this year they will hand money over to remaining investors as dividends. And as for investing some of that for expansion or jobs for the little guy? Nada.

IronLionZion

(45,667 posts)
6. We're going to wish we had that revenue when Trump crashes the economy
Mon Jan 28, 2019, 11:41 AM
Jan 2019

in fact, Trump's going to wish he had that revenue since he couldn't even get $5 billion for his stupid wall.

LiberalLovinLug

(14,180 posts)
8. The "trickle down theory" has been proven time and again that it doesn't work
Mon Jan 28, 2019, 04:03 PM
Jan 2019

Yet the Koch type elites and the bought off politicians that work for them keep trotting it out as their reason for handing themselves yuuuuuuuuuge tax breaks to be paid off by some future magical incoming funds. It is just an excuse to grab more of the treasury for themselves, nothing more. They keep using it partly because it sounds plausible, and actually if they were required by law to invest all profits into new American business, and/or wage increases for workers, the economy WOULD improve. But that is not what they do with the extra cash. Too bad the MSM is cuckolded by these elites to not speak a word of this.

Maxheader

(4,374 posts)
9. What a load of brown smelly..
Mon Jan 28, 2019, 04:24 PM
Jan 2019

This country doesn't recognize trickle down? Its only been pulled on amersicans
about a zillion times...reagon...brownback...bushys...And we get screwed each time...

The White House had predicted that the massive fiscal stimulus package, marked by the reduction in the corporate tax rate to 21 percent from 35 percent, would boost business spending and job growth. The tax cuts came into effect in January 2018.


And the real screwing comes when us middle classers have to make up the loss of that trillion dollars in revenue....

Scruffy1

(3,257 posts)
11. Theodore Roosevelt used the term whe he was President.
Mon Jan 28, 2019, 04:53 PM
Jan 2019

So this bamboozle is almost as old as three card monte.

Scruffy1

(3,257 posts)
16. Demand is the only thing that drives capital expansion.
Tue Jan 29, 2019, 08:29 AM
Jan 2019

Taxes has nothing to do with it. What you gonna do? Build a new plant for a product that has no demand? I really think that most are aware we are heading for another recession and instead of expansion decided to sit on some cash and use some for things like stock buy back. Dividends and stock buy backs are just a way of saying we don't know what to do with the cash.Instead of a tax cut there should have been a massive investment in infrastructure and education. That is how you build an economy.

htuttle

(23,738 posts)
14. If you use it to entertain visiting customers, you can deduct 100% of the operating costs
Mon Jan 28, 2019, 06:55 PM
Jan 2019

Plus, depreciate the facilities themselves.

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