NRF backs reduction in corporate tax rate

The National Retail Federation (NRF) is publicly supporting 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 VP 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 U.S., 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.”



NRF has called for years for business income tax reform that it says 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.



In addition, NRF has publicly stated concerns with consumption taxes that are levied on purchases. Earlier studies commissioned by NRF showed consumption taxes would negatively impact jobs and the consumer. NRF says it is committed to studying the Brady tax reform proposal to determine the economic impact on the retail industry and its customers.



“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% tax on the wide range of consumer goods that are imported into the U.S. 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.”