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FT: US Companies Curb Spending Amid Trump Tax Uncertainty

FT: US Companies Curb Spending Amid Trump Tax Uncertainty
(Dollar Photo Club)

By    |   Monday, 24 April 2017 04:36 PM

U.S. companies reportedly have put the brakes on cash spending as President Donald Trump’s tax reform promises have yet to lead to a rise in investment and overall uncertainty surrounds the actual details of his plan.

“The data, in a survey of corporate treasurers, suggests the new administration’s promises of tax reform, deregulation and infrastructure spending have not yet led US executives to increase investment,” the Financial Times reported.

“In January, more companies said they were planning to draw down their cash reserves than to add to them — the strongest signal in two years of expansive intentions, from the quarterly survey by the Association for Financial Professionals survey,” the FT reported.

“Three months on, however, a majority of corporate treasurers said they have not done that, and a majority said they intend to hoard still more cash in the current quarter,” the FT said.

“In January, people were pretty upbeat at the growth initiatives from the new administration,” said Craig Martin, director of executive programs at the AFP. “We had expected the trend of spending cash and investing in the business would continue, but what a turnround. People have put the brakes on again.”

However, many other respected economic gurus are much more optimistic about the economic future under Trump.

Veteran financial guru and former Ronald Reagan adviser Larry Kudlow is urging any impatient investors to just give Trump a chance to fully enact his strategies to reform healthcare, spark economic growth and redesign the tax system.

After all, Trump has been in office a relatively short time and has inherited a mountain of problems from the past two decades. “He's trying to fix a lot of problems that have gone unfixed in the last 20 years,” Kudlow explained to CNBC.

Trump “still wants tax reform and healthcare reform. Those are big issues for him.” the Newsmax Finance Insider said. “He’s been in 80 days, give him a chance,” said Kudlow, who advised the Trump campaign on economic issues.

Meanwhile, many other respected economic voices are predicting robust growth and additional stock-market gains amid Trump's blueprint to truly "Make America Great Again."

David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.

“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told Newsmax TV's “The Income Generation Show.”

“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration I think the stock market is going to love Trump,” Horowitz said.

"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now

(Newsmax wire services, Reuters and Bloomberg news contributed to this report).

© 2019 Newsmax Finance. All rights reserved.

   
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U.S. companies reportedly have put the brakes on cash spending as President Donald Trump's tax reform promises have yet to lead to a rise in investment and overall uncertainty surrounds the actual details of his plan."The data, in a survey of corporate treasurers, suggests...
trump, tax, companies, spending, cash
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2017-36-24
Monday, 24 April 2017 04:36 PM
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