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

Nov 2005
7,853
2,420
California
#1
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.
$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

Repubs are supposed to be good on business, but on this issue (the result of corporate tax cuts) they are just plain ignoring the facts.
IT'S ABOUT SUPPLY AND DEMAND people!!!
Businesses create a product (supply) in order to meet a demand.
If a business recognizes that the economy has a demand for $1 million dollars worth of product, they will make $1 million dollars worth of product.
They will NOT make $2 million dollars of that product just because they have an extra $1 million in their pocket!
 
Nov 2005
7,853
2,420
California
#4
Jimmyb...
Already seeking to derail the topic in post #3... :rolleyes:
(maybe you need to google what "capex" means...

This thread is about THE LIE that the Trump corporate tax cuts would result in business expansion.

Like I keep saying, whenever something "good" happens, Repubs blindly credit Trump.
This thread is about a corollary whereby Trump claims something good will happen because of something he did, and Repubs blindly treat it like it's already happened!
 
Dec 2018
1,893
617
New England
#7
$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

Repubs are supposed to be good on business, but on this issue (the result of corporate tax cuts) they are just plain ignoring the facts.
IT'S ABOUT SUPPLY AND DEMAND people!!!
Businesses create a product (supply) in order to meet a demand.
If a business recognizes that the economy has a demand for $1 million dollars worth of product, they will make $1 million dollars worth of product.
They will NOT make $2 million dollars of that product just because they have an extra $1 million in their pocket!
You can pretend that the strength of the US economy over the last two years hasn't surprised most economists (and especially those who lean left), but the results are what they are.
 
Likes: Sabcat
Jul 2014
13,853
8,389
massachusetts
#9
$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

Repubs are supposed to be good on business, but on this issue (the result of corporate tax cuts) they are just plain ignoring the facts.
IT'S ABOUT SUPPLY AND DEMAND people!!!
Businesses create a product (supply) in order to meet a demand.
If a business recognizes that the economy has a demand for $1 million dollars worth of product, they will make $1 million dollars worth of product.
They will NOT make $2 million dollars of that product just because they have an extra $1 million in their pocket!
In other words, based on the expectations that Republicans set for the tax cut, it was a major fail.
Not Really, the real powers that be never believed a word of that shit, that bullshit was there for the benefit of the sheep, the real goal of the tax cut was to create a huge deficit, which will be used a "crisis" to call for cuts in Medicare and Social Security.
 
May 2018
4,788
2,993
Chicago
#10
By what right do you dictate what the owners of a company do with their proceeds?
Hmm...maybe by the claims by the right that tax cuts will lead domestic employers to invest in more US jobs. That's the bill of goods the right sold the public after all. If they don't, well then, I guess the right didn't tell the truth and should be voted out of office.