WASHINGTON: 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 US 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 per cent of respondents said they had not changed plans. The White House had predicted that the massive fiscal stimulus package, marked by the reduction in the corporate tax rate to 21 per cent from 35 per cent, would boost business spending and job growth. The tax cuts came into effect in January 2018.
“A majority of respondents, 84 per cent, 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 per cent of respondents from that sector reporting increased investments at their companies, and 20 per cent saying they redirected hiring and investments to the United States from abroad. — Reuters
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