The National Retail Federation welcomed tax reform signed into law by President Trump today, saying the measure will dramatically benefit businesses, workers and consumers.
“This is landmark legislation that will boost our nation’s economy more than anything we have seen in decades,” NRF President and CEO Matthew Shay said. “Middle-class taxpayers are the biggest winners, with significantly more take-home pay thanks to tax cuts and vast new employment opportunities because of tax relief that will help large and small businesses alike create new jobs. Consumers finishing up their holiday shopping this weekend can rest assured that there will be more money in their paychecks by the time the bills come due.”
“Retailers are winners under tax reform since our industry receives few of the tax breaks that benefit other sectors of the economy and pay the highest effective tax rate of any industry,” Shay said. “Lower taxes will help us grow our businesses and offer our customers better value. But the biggest benefit for retailers will come as lower taxes and increased global competitiveness help U.S. companies throughout the economy put more Americans to work and pay them higher wages. Consumers with jobs and money in their pockets benefit the entire economy, including retailers and every job behind every product on our shelves.”
NRF analysis shows that cutting the corporate tax rate will save large businesses enough to create between 500,000 and 1.5 million jobs while reducing taxes for “pass throughs” will benefit the small retailers that make up 95 percent of the industry. Congressional estimates show a family earning the average income of $73,000 a year will see a tax cut of over $2,000 in 2018, which is easily enough to cover the $967 NRF research shows the average consumer will spend this holiday season.
NRF has led the retail industry’s fight for tax reform for years, calling on Congress to eliminate tax breaks that benefit only some industries and to use the revenue saved to lower rates for all companies, including small businesses. During this year’s debate, NRF helped defeat a border adjustment tax proposal that would have driven up the price of imports and put many retailers out of business, took retail CEOs to meet with members of Trump’s cabinet, met with Trump at the White House, arranged for Treasury Secretary Steve Mnuchin to address retailers on tax reform and rallied with senators on Capitol Hill to support tax relief for small businesses.
NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private-sector employer, supporting one in four U.S. jobs — 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy.