Big businesses appear to be using their tax cut for share buybacks and mergers. So maybe it’s small businesses who will lead the charge of economic growth by using their tax cut to increase capital investment? Apparently not:
This comes via Dean Baker, who comments:
The Trump administration told us that the corporate tax cuts would lead to a massive boom in investment which would increase the capital stock by one third above the baseline projection. But for some reason the nation’s businesses haven’t gotten the message….There is no evidence here of any uptick in investment whatsoever and certainly not of the explosive increase promised by the Trump administration. Maybe if Trump did some more tweeting on the issue it would help.
Patience, Dean. Those tax cuts will supercharge the economy any day now. Just you wait.