Trump and Republicans promised that the $1.5 trillion Trump tax law would boost business spending and job growth. A year later, businesses say the Trump tax law has had no impact on their investment or hiring plans.

The White House cited business investment and spending on factories as evidence their tax cut was working.

Kevin Hassett: “Because what’s happened is that the capital spending boom that we promised would happen if we passed the tax cuts is underway.”

Kevin Hassett: “Hassett argued the tax cut has unleashed a business investment boom. That spending, he said, is already boosting worker productivity, leading to higher wages ‘because people have better machines to work with. … That means the recovery can last longer, and that’s really, really good for workers.’”

Larry Kudlow: “Business investment is booming. … Well, that’s the key to productivity which is the key to growth which is the key to rising, real wages and very strong jobs.”

But, a year later the Trump tax law has had “no major impact on businesses’ capital investment or hiring plans.”

Reuters: “The Trump administration’s $1.5 trillion cut tax package appeared to have no major impact on businesses’ capital investment or hiring plans, according to a survey released a year after the biggest overhaul of the U.S. tax code in more than 30 years.”

While the business investment Republicans promised hasn’t materialized, stock buybacks for wealthy shareholders have broken records.

CNN: “The tax cuts did appear to have a dramatic impact on stock buybacks, which allow companies to return excess cash to shareholders. While government statistics show that nominal fixed business investment increased just 8.2% through the first three quarters of 2018, announced stock buybacks surged by 71% in 2018 to a record $1.04 trillion, according to TrimTabs Investment Research.”