NRF Welcomes Camp Proposal on Corporate Tax Reform
WASHINGTON, October 26, 2011 – The National Retail Federation welcomed a proposal unveiled today by House Ways and Means Committee Chairman Dave Camp, R-Mich., to reform the nation’s corporate tax structure.
“This is a major step forward in drafting a simpler and fairer tax system that would ultimately help create jobs for American workers,” NRF President and CEO Matthew Shay said. “Retailers would see lower tax bills under this proposal and would pass much of that savings along to our customers. That would result in higher sales and more demand for merchandise that would boost jobs not just in stores but throughout the supply chain and many other sectors of the economy.”
“As the industry that supports one out of four U.S. jobs, we look forward to working with Congress to make tax reform that boosts the economy and creates jobs a reality as soon as possible,” Shay said.
Camp today released a discussion draft for corporate tax reform that would lower the current top corporate tax rate from 35 percent to 25 percent in return for eliminating certain tax deductions and credits. The deductions and credits were not identified, but as a domestic industry that receives few such tax breaks, retailers welcome the simplification and fairness that would result from the plan.
NRF has sought corporate tax reform that would broaden the base while lowering rates for years, arguing that the move 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. This year alone, NRF submitted written testimony to the Ways and Means Committee, provided a witness from Sears Holding Corporation at another hearing held by the committee, and asked the Joint Selection Committee on Deficit Reduction – also known as the “supercommittee” – to consider the issue. NRF is also a member of the RATE Coalition, a broad-based industry group dedicated to corporate tax reform that eliminates corporate tax expenditures in favor of a lower tax rate.
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