WASHINGTON - The National Retail Federation announced that it has urged the Senate to support legislation extending Bush era tax cuts that is scheduled for a procedural vote today, saying the measure would help preserve and create jobs.
“If current tax rates are allowed to expire at the end of this month, millions of Americans will see a massive tax hike on New Year’s Day that will force billions of dollars to be withheld from their very next paycheck,” NRF president and CEO Matthew Shay said. “That would drastically and immediately dampen consumer spending across the nation, and cause the economy to decline further at a time when it is still struggling to recover. Retailers and the one out of five U.S. jobs they provide would be on the front line of this economic blow. But the impact would quickly spiral throughout the entire economy, including manufacturers, service providers and virtually every sector. We cannot afford to allow this to happen.”
Sponsored by Majority Leader Harry Reid, D-Nev., the measure is based largely on a “framework” agreement reached last week between President Obama and congressional Republicans. The bill would extend Bush-era tax cuts for all taxpayers regardless of income level for two years, avoiding a tax increase that would come in January if the cuts are allowed to expire at the end of this year.
In addition to preserving current income tax rates, Shay said the bill includes “many provisions that will help to create additional jobs and promote continued economic recovery.”