CBS reports that analysts for major investment firms such as UBS and Goldman Sachs increasingly blame lower tax returns under the new GOP tax code for a sharp fall in consumer spending this year.
While the refund does not reflect total tax liability, it could hurt the sale of durable goods. Goldman believes retail sales could recover later this year, but UBS believes the smaller tax refunds could create a shortfall of tens of billions of dollars that will depress sales for the year. Multiple analysts also note that most of the tax cuts not for the wealthy were only temporary and some are already expiring further depressing consumer spending.