Most economists agree that the Republican tax plan will boost business investments. In today’s economy, however, experts said it’s unrealistic to expect the kind of investment bonanza that proponents of the tax plan are banking on. “It’s a fantastically poorly targeted way of delivering a middle-class tax cut,” said Edward Kleinbard, a USC professor and former chief of staff to Congress’ Joint Committee on Taxation. It’s widely believed that the corporate tax cut, plus allowing for immediate, full deduction on investments, would spur some companies to spend more on capital expenditures — land, buildings and equipment. A 20% corporate tax rate would be the lowest level since 1939.

Source: Los Angeles Times November 25, 2017 12:00 UTC