Capital investment plays a vital role in the American economy, but it seldom receives the attention it deserves regarding its immense effect on workers and businesses. 

According to data from the Census Bureau’s Annual Capital Expenditures Survey, in 2020 alone, U.S. nonfarm businesses spent a whopping $1.7 trillion on structures and equipment. This figure includes spending by every sector of the economy, ranging from mining, utilities and manufacturing to information technology, finance and real estate.

The tax code’s treatment of such investments matters tremendously. Businesses must weigh various factors when deciding whether to buy new equipment, and a poor national tax environment can tip the scale against such investments.

Published in its entirety in Inside Sources.

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Nate Scherer is a Policy Analyst with the American Consumer Institute where he researches and writes about a diverse range of consumer issues. He previously served as a Policy Analyst at the Reason Foundation and has also worked for several other nonprofits including the Texas Public Policy Foundation and the Leadership Institute. More recently, he worked an educator for Fairfax County Public Schools and performed research for Georgetown University’s Edunomics Lab. He possesses a Master of Arts in Teaching in Secondary Education, Social Studies, and has a Bachelor of Arts in Politics. He currently resides in Falls Church, VA.