The high profile move by the United States to drastically cut corporate taxes has increased the pressure on other economies to hand out similar incentives to keep investors on their shores.
A major trade association representing the technology industry on Monday announced its formal support for the final version of the GOP tax bill. The Information Technology Industry Council (ITI) said in a letter to members of Congress that it believes the bill will benefit the technology industry.
S&P Global believes that a dual-pronged effort of increasing entry and retention of more women to the American workforce, particularly those professions traditionally filled by men, represents a substantial opportunity for growth of the world’s principal economy, with the potential to add 5%-10% to nominal GDP in just a few decades.
The number of technology-based start-ups surged 47 percent in the last decade. These firms still account for a relatively small share of all businesses, but they have an outsized impact on economic growth, because they provide better-paying, longer-lasting jobs than other start-ups, and they contribute more to innovation, productivity, and competitiveness.
Republicans and major technology firms who support a tax overhaul have touted reforms that they say will bring offshore profits back into the country, boosting U.S. tax revenue and benefiting the economy. But critics are skeptical of those claims, doubting that both the House and Senate versions of the tax bill give companies like Apple the incentive to bring money into the U.S. over the long term.
CFRA analyst Scott Kessler estimated in October that Apple, Cisco, Microsoft and Oracle would be the biggest beneficiaries of a lower tax rate on repatriated earnings. Indeed, Apple CEO Tim Cook has said he would want to invest more in the U.S.
Annual worldwide corporate R&D spending broke through $700bn in annual investment, according to an annual analysis of R&D spending across 1000 global public companies by PwC’s Strategy&. It shows corporate R&D spending increased a steady 3% in the past year, bouncing back from less than 1% increase previously.
U.S. geographical economic inequality is growing, meaning your economic opportunity is more tied to your location than ever before. A large portion of the country is being left behind by today's economy, according to a county-by-county report released this morning by the Economic Innovation Group, a non-profit research and advocacy organization. This was a major election theme that helped thrust Donald Trump to the White House.
President Donald Trump's economic policies are causing the U.S. to fall behind China in the tech sector, according to a Saxo Bank analyst, who said the current government does not have the "ability of seeing the world changing." Steen Jakobsen, chief economist at Saxo Bank, said much of the policy that Trump has enacted or talked about is "negative" and "actually against productivity."
As we approach the 10th anniversary of the global financial crisis, the world economy is showing encouraging signs of recovery, with GDP growth accelerating to 3.5 percent in 2017. Despite this positive development, leaders are facing major predicaments when it comes to economic policy. Uneven distribution of the benefits of economic progress, generational divides, rising income inequality in advanced economies, and increasing environmental degradation have heightened the sense that the economic policies of past years have not served citizens or society well.