Impact of US Tax Changes on US Manufacturing Could be Significant
New tax laws and new tariffs could change the way you use energy, while boosting the productivity of US manufacturing. While lower tax rates for businesses is an obvious change to the tax law, changes to manufacturing business decisions may not be so obvious.
According to an article from Supply Chain Digest, “The changes to the US tax code in December – lowering rates for many companies, as well as increasing and decreasing deduction timing in several areas– seems to be buoying the US economy, and certainly the stock market”.
The article discusses:
- Ending the taxation of foreign profits
- Pass-through businesses a large deduction
- Immediate expensing of capital expenditures
- Will the new law accelerate adoption of robots on the factory floor?
The article continues, “The [tax] change is encouraging manufacturers to replace or add equipment – including robots – because the ROI from the investment is improved”. What ways will the new tax law impact US manufacturers?
To read more, see the full article from Supply Chain Digest.