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.