NRF welcomes tax reform provisions in Congressional budget proposal that reduce top corporate tax rate to 25%, eliminate tax deductions and credits that benefit only a few industries
March 21, 2012
– The National Retail Federation welcomed tax reform provisions included in a budget proposal released today by House Republicans, saying the plan shows bipartisan support is building for tax reform that would boost the economy and help create jobs.
“This proposal is further evidence that both sides of the political aisle, both chambers of Congress and both ends of Pennsylvania Avenue all agree that the time for comprehensive, pro-growth tax reform has come,” NRF Senior Vice President for Government Relations David French said. “Tax reform is an opportunity for Washington to put its political differences aside and come together for the good of our nation’s economy and the American workers who need jobs to put food on their families’ tables. Seeing tax reform proposals put forth by leaders of both parties within a month of each other is a welcome sign that tax reform could soon be a reality.”
House Republicans led by Budget Committee Chairman Paul Ryan, R-Wisc., today released a 98-page budget proposal. Included is a tax reform section that would reduce the top corporate tax rate to 25 percent from the current 35 percent in return for “broadening the base” by eliminating tax deductions and credits that benefit only a few industries. The plan would also consolidate the current six individual income tax brackets into two, at 10 percent and 25 percent, and eliminate the Alternative Minimum Tax.
NRF has long supported efforts to broaden the tax base and substantially lower tax rates for all businesses.
The proposal comes less than a month after President Obama proposed base broadening and a reduction in corporate taxes to 28 percent. Committees in both the Republican-controlled House and Democrat-controlled Senate have been holding hearings on tax reform for several months, and NRF is pushing lawmakers to pass legislation on the issue as quickly as possible.
NRF has argued before Congress that reform would make the tax code more economically efficient and make it easier for companies to make decisions based on business reasons rather than tax implications. Retailers would also likely see savings that could be passed along in lower prices, thereby increasing consumer demand and increasing jobs throughout the supply chain.
As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs – 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s Retail Means Jobs campaign emphasizes the economic importance of retail and encourages policymakers to support a Jobs, Innovation and Consumer Value Agenda aimed at boosting economic growth and job creation. www.nrf.com