NRF Says Obama Proposal Could Hamper Tax Reform

The National Retail Federation issued the following statement from President and CEO Matthew Shay in response to President Obama’s proposal today on deficit reduction.

“NRF is concerned by the Administration’s proposal to fund short-term spending needs by eliminating certain corporate tax provisions. NRF supports the type of corporate tax reform many Democrat and Republican policymakers have been advocating, which would eliminate corporate tax benefits in exchange for substantially reducing tax rates for all businesses.

The retail sector has the highest effective corporate tax rate of any U.S. industry as well as the highest corporate tax rate in the industrialized world, which harms the competitiveness of U.S. businesses and discourages foreign investment in the United States. But piecemeal efforts to eliminate corporate tax benefits outside the context of corporate tax reform would make it very difficult to achieve the type of changes required to provide much-needed growth in the U.S. economy. Comprehensive reform would allow retailers to expand their businesses and create more jobs, which are fundamental building blocks for economic growth in the country.”

The NRF Board of Directors last month passed a resolution urging Congress to enact comprehensive tax reform in 2013 and setting out a list of principles aimed at achieving tax policy that would boost the economy and encourage job growth,

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