There are many companies in the USA which are running at a slow or stagnant rate and to improve the growth rate of such companies President Trump two years ago on December 22, 2017, signed a massive deal in which the government waived off more than $1.5 trillion of corporate taxes. There was a time when most of the companies had no cash flow or liquid funds for their capital expenditures like investments or acquisition of fixed assets and that’s why trump exempted more than one and a half trillion dollars of such companies taxes. However, according to a recent survey done by the National Association of Business Economics (NABE) which state majority of the companies did not do any significant capital expenditure even after getting tax exemption from the government.
According to a survey, they found that only some companies have agreed that their investments into the fixed asset and other business sectors have increased, but on the other hand 84 percent of the surveyed companies found to be made no significant improvement. According to researchers, the majority of the companies did not do any considerable expenditure like purchasing fixed assets or hiring a huge amount of labors even after they got an exemption from corporate taxes. The White House announced changed the corporate taxes on 21%from 30% to create the jobs. However, it seems like nothing is going as planned since the majority of the companies haven’t done any type of significant improvement.
However, goods-producing companies responded positively because it’s been found that many manufacturing companies raised their investment because of the significant tax cutting. There are very few firms which has improved their business plans after getting that much amount of tax relief which is a concerning thing.
David has an industrial background. He has a rich experience in covering business and science-related news, thanks to his love for finance and interest in space exploration. At the Prudour News, David is the go-to guy whenever we decided to cover business and science sections. In his spare time, he likes to attends conferences and forums on space exploration and shares his experience and views with people.