Tax Cuts Alone Not Enough to Spur Investment

Tax cuts alone will not cause businesses to make more capital investment and patch a weak spot in the economy, according to a survey of tax executives released last week.

The accounting firm Deloitte & Touche asked 124 senior tax executives whether their businesses would buy equipment, computers and other capital investments if Congress should enact a number of tax breaks being considered.

Clint Stretch, director of tax policy at Deloitte & Touche, said the survey shows business executives look at the broad economic climate, not just tax policy, before deciding on investments.

While most economic developers are not expecting miracles from the tax cuts, the Deloitte & Touche analysis points to the complexity of business investment decision-making at this time.

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