In the first of several Policy Pulse surveys to be conducted in 2018, the Equipment Dealers Association (EDA) and the Association of Equipment Manufacturers (AEM) surveyed their members in April about the impact of the Tax Cuts and Jobs Act and steel and aluminum tariffs on their businesses.
Here’s 5 things learned from the survey:
- Dealers and manufacturers were in consensus that the two most beneficial provisions of the Tax Cuts and Jobs Act were the lower corporate tax rate and the favorable expensing provisions for new and used equipment.
- Survey takers uniformly agreed that there were no provisions in the Tax Cuts and Jobs Act which they believed were negatively impacting their businesses.
- Dealers and manufacturers uniformly agreed that President Trump’s tariffs on aluminum and steel will have a negative impact on the sale of machinery in 2018.
- 45.5% of dealers and 61.9% of manufacturers said the tariffs would negatively impact the economy.
- Dealers and manufacturers agreed that the expansion of the deduction limit of Section 179 and the 100% bonus depreciation would have minimal impact.
To access additional data and analysis as well as comments from dealers and manufacturers who participated in the survey, click here.
The next EDA/AEM joint survey will be released this summer and cover new and used inventory.