Newsletter

July 16, 2010 - NRF Meets with House GOP, Calls for Policies that Support Job Creation

The National Retail Federation told House Republican leaders today that Congress needs to pass legislation that encourages job creation through tax policy and greater availability of credit while avoiding mandates and regulation that discourage growth.

 “We know that there are trillions of dollars in assets in cash sitting on balance sheets at the Federal Reserve and on the books of many businesses, including a number of ours,” NRF President and CEO Matt Shay said. “But no one has the courage to invest that capital because of the uncertainty that exists about what’s going to happen next.”

“We need some clarity of thought and some clarity of purpose among all of the leaders on both sides of the aisle and both chambers when we speak about encouraging people to get out there and invest and consume,” Shay said. “Our members aren’t going to hire people and put them back to work as long as they know consumers don’t believe that the recession is over. As far as we’re concerned the recession hasn’t ended because consumers don’t believe it has.”


Watch job creation conference (fast-forward
to 46:54 to see Matt Shay’s comments).Shay was among executives from more than a dozen business associations who participated in a forum on job creation held at the U.S. Capitol this morning by House Minority Leader John Boehner, R-Ohio, and the House GOP’s America Speaking Out program.

“Our members’ No. 1 issue is job creation,” Shay said. “We are willing to talk to anybody about how to create jobs and get the economy back on track. This is not a partisan issue. It’s an economic issue.”

Boehner expressed similar concern about policies that have caused businesses to hesitate in making investments that could create jobs.

“Employers are scared to death of what’s coming next,” he said. “We’d like to see employers state employing again.”

Shay told Boehner and others on the panel he was particularly concerned by remarks made this week by Erskine Bowles, co-chairman of President Obama’s deficit reduction commission, supporting the idea of a Value Added Tax or similar consumption tax. NRF has long opposed consumption taxes because of the negative impact on consumer spending, and has commissioned a study on the impact of a VAT that will be submitted to the deficit commission later this year.

“Talk about sending the wrong message to consumers and investors and businesses,” Shay said. “That’s absolutely the wrong direction and that’s not the way in which we ought to be going.”

Boehner agreed.

“There’s no question that adding more taxes is not going to help matters,” Boehner said. “Clearly this conversation about a Value Added Tax or some kind of consumption tax would be a dramatic blow to all U.S. businesses.”

Shay said job recovery should be led by the private sector but that employers need policies that will help free access to credit, more certainty in federal tax policy and the regulatory agenda, and fewer mandates that discourage job creation.

© 2010 National Retail Federation