$1.5 trillion U.S. tax cut has no major impact

Ian Jeffrey

Council Hall
Mar 2013
73,873
42,358
Vulcan, down the street from Darth Vader
#1
$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

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.


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Another demonstration of the failed principle that the best way to help poor people is to give rich people more money. It does not, and will never, work.
 
Sep 2014
4,603
1,372
South FL
#5
$1.5 trillion U.S. tax cut has no major impact on business capex plans: survey

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.


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Another demonstration of the failed principle that the best way to help poor people is to give rich people more money. It does not, and will never, work.
That's the result of a survey.

Here's actual investment data:

Net domestic investment: Private: Domestic business

Taxes impact rate of return AND taxes are allocative, there's no way around that.
 
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Ian Jeffrey

Council Hall
Mar 2013
73,873
42,358
Vulcan, down the street from Darth Vader
#7
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Jul 2014
35,437
9,305
midwest
#8
On the other hand, I gather that the luxury yacht industry is doing unusually well.
Good point.

For instance, John Kerry bought his $7 Million yacht in New Zealand.

At a time when the American yacht building industry was struggling.

And saved half a million dollars (that's real M O N E Y) by docking his foreign made yacht in neighboring Rhode Island.

Manufactured out of country, and docked out of state.

Yeah, that's a real American right there, I tells ya...

Ah yes, the hypocrisy...
 
Sep 2014
4,603
1,372
South FL
#9
Not meaningful. The survey said their plans had not changed as a result of the tax cut, and there is no reason to doubt those claims.
But the stats show they actually did.

And what's actually important is that even if their plans really would not change, one iota, and that $100 just sat in the bank, and dammit if they're going to change their plans in the face of money just sitting around. Even THEN the money circulates. Even if they pay off a bond, even if they pay a dividend, even if they buy back stock, even if they just let the money sit in a non-interest bearing bank account.

The key is that the money is not allocated by the government. The money needn't be allocated directly by the recipient of the tax break. The foundation of the credit markets is somebody somewhere is in possession of a dollar he or she doesn't need right now. The fact people are in possession of money they have no current plans to spend is not a bad thing.
 
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Djinn

Council Hall
Dec 2007
50,508
36,885
Pennsylvania, USA
#10
Good point.
For instance, John Kerry bought his $7 Million yacht in New Zealand.
At a time when the American yacht building industry was struggling.
And saved half a million dollars (that's real M O N E Y) by docking his foreign made yacht in neighboring Rhode Island.
Manufactured out of country, and docked out of state.
Yeah, that's a real American right there, I tells ya...
Ah yes, the hypocrisy...
Your information is dated. John Kerry bought the yacht in 2010, and sold it in 2016.