$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey
Source: Reuters
WASHINGTON (Reuters) - The Trump administrations $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.
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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
Mister K
(450 posts)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.
sandensea
(21,720 posts)Just in business capital offshoring plans - i.e. a lot more of it.
watoos
(7,142 posts)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)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)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.
turbinetree
(24,745 posts)IronLionZion
(45,667 posts)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)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)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)So this bamboozle is almost as old as three card monte.
Scruffy1
(3,257 posts)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.
Yavin4
(35,455 posts)htuttle
(23,738 posts)Unless you buy a brothel or a coca plantation. Then Yes to both.
Yavin4
(35,455 posts)htuttle
(23,738 posts)Plus, depreciate the facilities themselves.
duforsure
(11,885 posts)Wish he'd go away and eat his hamburgers , and leave this country alone now.