By NRF, Special for USDR
The National Retail Federation welcomed a tax reform proposal released today by House Ways and Means Committee Chairman Kevin Brady, R- Texas.
“This is an important step in the policy discussions on fundamental tax reform,” NRF Senior Vice President for Government Affairs David French said. “With the highest corporate tax rate in the industrialized world, our current corporate tax system discourages investment in the United States, harming our businesses and, more importantly, our consumers. This proposal would drastically reduce the U.S. corporate tax rate and make it more competitive with other nations.”
“We have real concerns about the proposal’s movement toward taxation of consumption rather than income,” French said. “Higher taxes on consumption would harm middle-class Americans through lower real wages and higher consumer prices. Clearly a 20 percent tax on the wide range of consumer goods that are imported into the United States would put increased economic pressure on families who can least afford it.
“We look forward to further reviewing this plan and working with Chairman Brady on a growth-oriented tax reform proposal that can address the issues related to our uncompetitive tax rates without increasing the tax burden on the consumer.”
NRF has called for years for business income tax reform that would “broaden the base” by ending tax provisions that benefit only a few industries and using the revenue saved to lower tax rates for all businesses. NRF last year commissioned a study showing that this type of income tax reform would provide the average family of four with an additional $3,000 a year to spend. NRF has concerns withconsumption taxes. Earlier studies commissioned by NRF showed the negative impact consumption taxes would have on jobs and the consumer. NRF is committed to studying the Brady tax reform proposal to determine the economic impact on the retail industry and its customers.
NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. NRF.com