Skip to main content

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


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

FILE PHOTO: U.S. President Donald Trump delivers remarks to mark six months since the passage of the Tax Cuts and Jobs Act, in the White House East Room in Washington, U.S., June 29, 2018. REUTERS/Jonathan Ernst
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.
The lower tax rates, however, had an impact in the goods producing sector, with 50 percent of respondents from that sector reporting increased investments at their companies, and 20 percent saying they redirected hiring and investments to the United States from abroad.
The NABE survey a lso suggested a further slowdown in business spending after moderating sharply in the third quarter of 2018. The survey's measure of capital spending fell in January to its lowest level since July 2017. Expectations for capital spending for the next three months also weakened.
"Fewer firms increased capital spending compared to the October survey responses, but the cutback appeared to be concentrated more in structures than in information and communication technology investments," said Swift, who is also chief economist at the American Chemistry Council.
According to the survey, employment growth improved modestly in the fourth quarter of 2018 compared to the third quarter. Just over a third of respondents reported rising employment at their firms over the past three months, up from 31 percent in the October survey. The survey's forward-looking measure of employment slipped to 25 in January from 29 in October.
Reporti ng by Lucia Mutikani; Editing by David Gregorio

Comments

Popular posts from this blog

CHECK OUT GEM - FLYAH EXLUSIVE INTERVIEW

GEM is to headline the Los Angeles Power Women Summit in December, bringing this new style of medical-music to the masses. She has been able to make use of her time in isolation: perfecting her EP, creating a YouTube channel and working on a plethora of collaborations with other global artists. The new single, If I’m Honest, is arguably the first of its kind. It has been specifically produced in the key of B. The musical note B is associated with the crown chakra, the 7th chakras in the Buddhist tantric system. Buddhists believe that by listening to music in this key, corresponding to the crown chakra, it can heal and awaken the listener, helping to release stored negative energy and energetic blockages in the body. WE HAD THE CHANCE TO CATCH UP WITH GEM READ WHAT SHE HAD TO SAY!   How long have you been doing music and where you find the inspiration? Music has always been a part of my life, although being visible in the producers chair has been a natural progression over the past 4 ye

Sam Hankins was born to shine! Jazz Musician with a supreme Sound!

We were able to talk to a very talented musician by the name Sam Hankins.  His jazz music is full of soul, with inspiration that can light the path for fans and fellow musicians. Read the details about his journey below!   Interview Questions So when did you become a musician, and would you say it was the ideal path to take? Because I was born into a musical family, becoming a musician was not something I even thought about. It is in my blood. I knew I wanted to make music my career at the early age of 5 years old. I know that being a professional trumpeter and school band director is my calling.   Who are the jazz influences that inspired you? You know, I started off with singing & playing the guitar, but then I saw Louis Armstrong playing the trumpet & that decided it for me. When I spoke to my mom, she said that my uncle had an old trumpet that he used to play and once I had cleaned it out, my fate was sealed. Some of the other jazz influencers were Freddie Hubbard, Miles Da

Michael Coleman Is back with another Anthem!

  WE HAD A CHANCE TO CATCH UP WITH MICHAEL COLEMAN, READ WHAT HE HAD TO SAY ABOUT HIS MUSICAL JOURNEY!   Michael Coleman, where are you from and what's it like in your hometown and how did you get the nickname "The Metropolitan Cowboy"?   I was actually born and raised in San Diego, California.  San Diego is just an awesome town although like everywhere else in California, it costs a fortune to live there.  My nickname, “The Metropolitan Cowboy” actually comes from a television project I was doing a few year’s back. I wrote and produced an adult-oriented sketch comedy show and since I was always dressed with a cowboy hat on and looked metrosexual we decided that should be the name of the show and my brand and I have been called that ever since.   How long have you been songwriting and where do you find the inspiration?   I’ve been writing since I was a kid, however I didn’t decide to take it seriously until I had a milestone birthday , I won’t tell you which one and it wa