WASHINGTON — The National Retail Federation expressed its support for President Obama's proposal for business tax reform, and pledged to work with the White House and Congress to win passage of legislation that would significantly lower rates in order to help retailers and other businesses create jobs.
“Tax reform is a monumental undertaking that can only be achieved with the backing of the President,” NRF president and CEO Matthew Shay said. “President Obama has put the power of his office behind this goal and made it clear we can no longer tolerate having American businesses saddled with the second-highest tax rates in the world. Lower taxes will make U.S. businesses more competitive at home and abroad, and will help create the jobs out-of-work Americans are looking to fill.”
The White House announced Wednesday that Obama will seek to reduce the current 35% top corporate tax rate to 28% in return for “broadening the base” by eliminating dozens of current tax credits and deductions. He also pledged to provide adequate transition periods to allow businesses to adjust to the new tax rules. But he also called for special benefits for manufacturing that would reduce that industry’s effective rate to 25%.
NRF has supported corporate tax reform that would eliminate most if not all credits and deductions rather than creating new ones, and favors an approach put forward by House Ways and Means Committee Chairman Dave Camp, R-Mich., to lower the top rate to 25% for both corporations and individuals. Many retailers are small businesses that pay their taxes utilizing individual tax rates.