Unintended Consequences: How Tariffs Explain Lagging Business Investment

Despite a tax cut that strongly incentivized business investment, recent economic data suggests companies are not spending significantly more on new equipment. Fear of tariffs may have something to do with it. The 2017 tax bill reduced the corporate tax rate from 35% to 21%. That should encourage firms to spend more on expanding their … Continue reading Unintended Consequences: How Tariffs Explain Lagging Business Investment