The National Association for Business Economics reports that companies in America have not witnessed any boost in jobs or investment from tax cuts from the Trump administration.
There was a huge fiscal stimulus package from the White House for the benefit of companies.
The corporate tax rate has been cut from 35 percent to 21 percent. The tax cuts have been effective from January 2018. However, corporate tax reforms have not changed investment plans nor hiring says Kevin Swift, the NABE President.
The National Association of Business Economics has published its business conditions and quarterly poll results, stating that 84 percent of respondents have not changed plans after the corporate tax has been lowered.
A package of almost $1.5 trillion tax cut has been provided on business capital investment, but no major impact is seen. The White House expected good job growth with the tax cut and stimulus package put together. But this has not been the result, says the poll from NABE.
The Tax Cuts and Jobs Act of 2017 have not accelerated hiring says 84 percent businesses. Though President Trump has said that the bill was aimed to provide more jobs and to help the middle class, it has not had the desired effect, says the survey.
Steven Munich, the Treasury Secretary has said that the tax overhaul will bring in a GDP growth of 3 percent or even higher and would help in creating more jobs. Though it was said in October 2017, not much growth is seen. He has said that it would “create millions and millions of jobs”.
The NABE survey shows that specific sectors have benefitted and have shown good job gains. Some areas which have seen job gains are in manufacturing, construction, and mining.
Previously, the taxes had been so high that companies preferred to reinvest their money overseas. Many Companies preferred stock buybacks than investments, due to heavy taxes.