Although money from tax reform is trickling down to consumers, it seems this spending may not extend into retail. That’s according to the findings from the 2018 BDO Consumer Beat Survey.
Thirty percent of earners say that their take-home pay has increased since tax reform, but 67% of consumers do not plan to increase their regular spending after tax season. And for those who do plan to spend, 24% will spend their refunds on experiences, not retail products.
Natalie Kotlyar, partner and national leader of BDO’s retail & consumer products practice, says that overall, retailers haven’t seen a spike in sales since the tax reform as consumers haven’t yet felt the benefits of individual tax cuts.