The majority of U.S. companies report having increased investment opportunities as a result of the Tax Cuts and Jobs Act, a new survey found, and many businesses plan to spend more money on growth.
Eight in 10 executives said tax reform has allowed them to make strategic investments that were not possible in the past, according to a new study from PwC, which polled 404 c-suite leaders. Seventy-eight percent of respondents said the new law has made doing business in the U.S. more attractive.
What do companies plan to do with their savings from tax reform? PwC found that 80% planned to invest in growth initiatives such as R&D or M&A, while 87% planned to invest in their workforce, from hiring to raising wages or expanding benefits. More than two-thirds of respondents want to put their savings toward corporate finance, while 65% said they would invest in customers through their operations and pricing.
Nearly one-third of executives said the Tax Cuts and Jobs Act would potentially cause them to make geographic changes in where they do business.
According to a recent study from the Bureau of Economic Analysis (BEA), U.S. companies repatriated more than $300 billion back to the country in the first quarter. That is up from just $38 billion one year ago.
During an interview with FOX Business’ Maria Bartiromo on “Morning with Maria” on Friday, U.S. Treasurer Jovita Carranza said the tax reform benefits for companies extend beyond new investments.
“It’s not only about employment and investments, but it’s also earnings that are going to be strengthened and that’s really important,” Carranza said.