Despite President Donald Trump’s assurance that his tax cuts would produce an outsized impact on business spending, investment and job growth, there has been no remarkable increase in any of these categories, according to a recent survey.
NBC News reported that the National Association of Business Economics' quarterly business conditions poll, released on Monday, found that some companies boosted investment due to the lowered tax rates, but on the whole the rate reduction had little effect: “84 percent of respondents said they had not changed plans.”
With the corporate tax rate dropped from 35 percent to 21 percent, the Trump administration all but promised noteworthy increases in spending and jobs — but one year later, a major increase has yet to materialize.
"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.
What boost in spending initially did occur is expected to continue its slowdown:
"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.