Latest news with #businessinvestment
Bloomberg
09-07-2025
- Business
- Bloomberg
New Trade Deals Another Instance of 'Chaotic' Tariff Rollout: Boushey
Heather Boushey, deputy director of the White House Council of Economic Advisers in the Biden administration, said the chaotic rollout of Trump's tariffs makes it difficult for businesses to plan investments in expanding production and jobs (Source: Bloomberg)
Fox News
02-07-2025
- Business
- Fox News
GROVER NORQUIST: Trump's 'big beautiful bill' and its permanent tax cut will change the world
President Donald Trump's permanent tax cut will change the world. The "big, beautiful bill" is the capstone of years of work to create a pro-growth tax policy that will make the American economy so strong we will leave Europe in the dust and convince China they cannot compete with us militarily or economically. The big bill provides lower tax rates for all. Permanent, immediate expensing of business investment. Tax simplification. America competing in the world economy with lower taxes, not lower wages. And the largest spending cut of any budget resolution in history. The "big, beautiful bill" makes all the temporary parts of the original Trump tax cuts permanent: the doubling of the child tax credit and standard deduction, the lower, across-the-board personal income tax rates for all Americans, and the powerful pro-growth immediate business expensing provisions. The importance of permanent 100% business expensing cannot be overstated. This is an achievement pursued by the taxpayer movement for the past five decades. Thanks to the bill, individuals and companies will know how to plan for the future. They can purchase and immediately deduct the cost of plant and equipment. They can place a new factory into service and deduct 100% of the cost. Democrats will not be able to claw back such widespread and successful tax reductions. Republicans will not have to "buy" extensions of tax rate reductions as they did in defending the previous Bush tax rate reductions. Following the Trump 2017 tax cuts with its temporary expensing provisions, Americans for Tax Reform compiled over 1,200 testimonials and newspaper reports documenting new investment and higher wages and benefits. The stories flowed in from all 50 states. Now again -- without the pandemic – White House economist Kevin Hassett found that the permanence of individual and corporate tax reduction will increase economic growth to the point that revenue will rise $4 trillion over the next decade. Growth will increase wages and manufacturing jobs. Growth will reduce the size of the deficit and debt as a percentage of our economy. We will move forward away from the debt as we did after World War II when the debt fell from 100% of GDP to 20% of GDP. Every Democrat opposes the bill. They'll have to explain to their constituents why they voted against across-the-board tax cuts, against no tax on tips and overtime and Social Security, against an expansion of the per child tax credit. The Democrats' "NO" vote is a vote for an across-the-board tax increase. Democrats want personal income tax rates to snap back to Barack Obama levels. Higher tax rates on every taxpayer and small business and the child tax credit and standard deduction cut in half. The economy responded to passage of the 2017 Trump tax cuts with massive new investment in the United States. Before the Trump tax cuts many companies were "inverting." They were bought by foreign companies because the American firms were worth more if owned by Canada or a European company—their tax laws were saner than America's in the time before Trump. Obama called companies shanghaied by overseas purchases disloyal and "Benedict Arnold" companies. In fact, U.S. policy continued by Obama damaged American competitiveness. The Trump tax cut fixed this and no significant companies have moved overseas since the Trump tax cut was enacted. The take-home pay of the median family increased in 2019 by 6.8%. That was growth that was driven by the original tax reform that is now being made permanent. But one notes that the growth came after Republicans lost 40 House seats because the growth did not become evident in time to win votes for the 2018 congressional elections. This time, Trump and the Republican leaders are determined to avoid this fatal delay. The goal is enactment by July 4. The president signed the 2017 bill on December 22, 2017 and it did not take effect until 2018. Trump and the Republican Congress ensured that this legislation will take effect for new investments as early as six months ago on January 19, the day before Trump's inauguration. No business needs to wait to invest in job-creating, productivity-enhancing plant and equipment that will make employees more productive and therefore more highly compensated. And yes, the legislation includes President Donald Trump's promised "No Tax on Tips" and "No tax on overtime pay" and provides tax cuts for seniors on Social Security. There are many other conservative wins in the bill. Here are some of the highlights: Taxpayers urge the House to pass the 'big beautiful bill' now in order to get it to President Trump's desk by July 4. With his signature, Americans will keep more of what they earn.
Wall Street Journal
01-07-2025
- Business
- Wall Street Journal
The Meh Tax Bill That Has to Pass
The Senate passed President Trump's tax bill on Tuesday, to exaggerated glee and consternation. Republicans say it is the start of a new economic golden age, while Democrats call it spendthrift and cruel. They're both wrong. The bill had to pass to avoid a $4.5 trillion tax hike next year when the 2017 reforms expire, but as a reform of the post-Covid welfare state it is a disappointment. The bill's best news is the economic certainty it will provide businesses. It makes permanent the 2017 reform's lower marginal tax rates, 20% deduction for pass-through businesses, increased estate-tax exemption and immediate expensing for capital investment and research and development. It also provides full expensing for new factories through 2028. Although largely extending the tax status quo, the bill could boost growth at the margin by giving businesses the confidence they need to make long-term investments. Permanence also means Democrats can't leverage the future expiration of the tax cuts to extract more spending—or tax hikes—from Republicans. On another positive note, the bill ends the Inflation Reduction Act's tax credits for wind and solar projects that begin construction later than a year from now, and eliminates the electric-vehicle credits. In return, Republicans from windy Great Plains states extracted a two-year extension of the IRA's biofuels tax credit. Call it the Hawkeye Heist.
Forbes
25-06-2025
- Business
- Forbes
The Future Of Growth: When Human Capital Meets AI Innovation
Business investment and AI artificial intelligence data analysis technology. Businessman and robot ... More future investor, stock market, forex, and crypto currency finance investment. A recent Wall Street Journal article titled, "Corporate America is convinced: Fewer employees means faster growth," casts a spotlight on a troubling shift in today's corporate strategies. Companies across industries are reducing their workforces, fueled by a belief that leaner operations equate to greater efficiency and faster growth. At first glance, this approach may seem both logical and inevitable in a world increasingly shaped by generative AI and automation. However, as we dig deeper, we're forced to confront an uncomfortable question: Are we sacrificing long-term sustainability and undervaluing human potential for the sake of short-sighted numerical goals? This response unpacks the risks of such strategies, emphasizing the enduring value of human capital. Yes, technology has revolutionized how we work. But without a disciplined partnership between human ingenuity and technological innovation, we risk losing more than we stand to gain. The Hidden Costs of Doing More With Less The Wall Street Journal article notes a growing sentiment among corporate leaders that those employees retained after workforce cuts should do more with less. While this mantra may sound efficient on paper, its implications for employees are far from empowering. For many, the expectation to continuously deliver amid shrinking teams and mounting pressures results in burnout, stalled creativity, and a growing disconnect from the organization's mission. The 2025 Microsoft Work Trend Index Annual Report captures this reality. It reveals that 80% of the global workforce feels they lack the time and energy to meet business demands. Employees are interrupted an average of 275 times a day, every two minutes during core work hours. This chaotic environment is not conducive to the deep focus or creative problem-solving that drives growth. I've seen executives deploy cost-cutting measures only to watch their organizations suffer long-term. Talented employees leave, innovation pipelines collapse, and team cohesion erodes. What remains is a workforce that is physically present but emotionally disengaged. Their fear of expendability creates an innovation vacuum where unique ideas and vibrant collaboration once flourished. Organizations may gain short-term efficiencies by trimming headcount, but the broader cost to their culture and resilience is immeasurable. Research shows that workers who feel dehumanized no longer bring their creativity or passion to work, and the ripple effects are devastating. The Peril of Over Reliance on AI The Wall Street Journal article underlines the accelerating role of generative AI in displacing jobs and streamlining operations. While the efficiency benefits of AI are clear, we must resist the temptation to view it as a one-size-fits-all solution to complex challenges. The 2025 Work Trend Index frames this issue within the context of 'human-agent teams,' where AI augments human effort rather than replacing it. These teams enable businesses to operate with agility while retaining the human elements of empathy, creativity, and judgment. However, over-reliance on AI threatens to compromise these strengths. Innovation doesn't arise from algorithms alone. It is the product of diverse human perspectives coming together, often in unexpected ways. AI can process data and provide insights faster than any human, but it cannot replicate the spark of intuition or the depth of relationships that drive meaningful transformation. Machines solve problems, but it's people who envision possibilities. The long-term risks of neglecting this balance are profound. Organizations that treat AI as a total substitute for human capital will find themselves outpaced by those who understand the indispensable value of creativity and collaborative ingenuity. Leadership at a Crossroads The Wall Street Journal article indirectly raises an essential leadership challenge for our time. What does effective leadership look like in an era of workforce reductions and technological upheaval? It's tempting for leaders to measure success by how quickly they can cut costs and streamline operations. But leadership isn't about efficiency at all costs. It's about creating environments where individuals feel valued, supported, and inspired to do their best work. Flattened hierarchies may look efficient, but cutting critical layers of leadership erodes mentorship and trust, leaving employees adrift during periods of change. The 2025 Work Trend Index introduces the concept of 'agent bosses'—leaders and employees who work side-by-side with AI systems, guiding their contributions to advance organizational goals. This shift requires leaders to expand their priorities from cost-cutting to empowerment, trust-building, and innovation. Great leaders reject the view of employees as mere costs and instead lean into their role as stewards of both human and technological potential. By doing so, they create organizations that are not only efficient but enduring. Striking a Balance Between Technology and Humanity Organizations don't have to choose between humans and technology. The 2025 Work Trend Index highlights 'Frontier Firms' as trailblazers in the art of integration. These companies combine AI's analytical power with human creativity to achieve optimized results. They move beyond efficiency to focus on adaptability and sustainable growth, demonstrating what's possible when organizations invest equally in people and innovation. The report also reveals that 82% of leaders see this as a pivotal year to rethink core strategies, and that's the essential call to action. Organizations that recalibrate their focus to balance technological advancements with the enduring power of human capital will ultimately lead the future. The question for corporate leaders comes down to this: Are you building an organization that is merely fast, or one that is truly resilient? Your willingness to invest in people, upskill them, and empower them to work collaboratively with technology will define your legacy. If leaders want to build companies that stand the test of time, they need to prioritize human capital reinvention alongside technological adoption. The most successful organizations will be those that align AI's power with the creativity, judgment, and emotional intelligence that only people can provide. The 2025 Work Trend Index offers a compelling roadmap. 47% of leaders are prioritizing upskilling their workforce, and 78% are considering adding AI-focused roles. These actions reflect a clear shift toward integrating human and technological capabilities rather than sidelining one for the other. Now is a critical moment for corporate America to move beyond quick cost-cutting measures. It's time to stop viewing employees as expenses and instead see them as the architects of innovation. The complex balance between human and machine is not just a challenge, it is the new mandate for leadership in the age of AI. Only by recognizing the irreplaceable value of human capital can we ensure both lasting growth and meaningful impact. The future is in the hands of those who embrace reinvention readiness through continuous learning, unlearning, and relearning. And it's just getting started.
The Independent
18-06-2025
- Business
- The Independent
Why UK's economic growth has been downgraded
The Confederation of British Industry (CBI) has downgraded the UK 's economic growth forecast due to rising costs and weak business investment, impacting the government 's growth ambitions. The CBI now projects the UK economy to grow by 1.2 per cent this year, down from its previous forecast of 1.6 per cent, and has also lowered the 2026 growth forecast from 1.5 per cent to 1 per cent Higher employment costs, stemming from the autumn budget's increases to national insurance contributions and the national minimum wage, have led to higher pricing and reduced capital expenditure and hiring among firms, according to the CBI. Shadow chancellor Mel Stride criticised Labour 's policies, claiming that higher employment costs are killing growth. The CBI's chief economist, Louise Hellem, emphasised the need for the government to use its industrial strategy to drive a thriving environment for businesses, given the challenges posed by domestic and global headwinds.
