The National Retail Federation (NRF) has shown its support for a corporate tax reform proposal released by the House Ways and Means Committee last week. The NRF says that the plan will support retail and consumer growth.
According to NRF Senior VP for Government Affairs David French, the corporate tax rate as it stands is the highest in the industrialized world, discouraging investment in the United States and ultimately harming U.S. businesses and consumers.
"This proposal would drastically reduce the U.S. corporate tax rate and make it more competitive with other nations," he said.
However, the NRF is concerned with the proposal's movement toward taxing consumption rather than income, saying it would harm middle-class Americans. "Clearly a 20 percent tax on a wide range of consumer goods that are imported into the United States would put increased economic pressure on families who can least afford it," French said.
Ultimately, the NRF looks forward to working with the Committee to build reform based on issues related to noncompetitive tax rates without increasing the taxes for the consumer.
The NRF has long been concerned about consumption taxes and has commissioned studies showing these taxes would have a negative impact on jobs and the consumer.
At the close of last year, the NRF lead a group of retailers wanting lawmakers to reject a customs bill unless it included a change to online taxes, ultimately ensuring that the same tax policies are applied to the internet as they are to brick-and-mortar retailers.
- see this National Retail Federation press release