The tax reforms that have been signed into law by U.S. President Donald Trump would dramatically benefit businesses, workers and consumers, said the U.S. National Retail Federation which wholeheartedly welcomed the tax reform.
“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.”
Anything between 500,000 and 1.5 million jobs would be created by large business as they would be able to save enough to do so by the reduction in the corporate tax rate, says the NRF after an analysis. The analysis also showed that the reducing taxes for “pass throughs” will advantage of the small retailers which account for more than 95 percent of the industry.
In 2018, there would be a tax cut of more than $2,000 from the tax reduction for every household that have an average income of $73,000 a year, shows Congressional estimates. At the same time, the NRF research has shown that the anticipated average consumer spend this holiday season would be $967 and the tax cuts would be more than that amount.
The NRF has previously made calls to the Congress to remove tax breaks which seek to benefit only a few industries and then make use of the savings for lowering of tax x rates for all companies that include small businesses. In this manner the NRF has been calling for tax reforms in the retail industry.
Discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers which are based in 46 different countries including the United States are represented by NRF and hence it the largest retail trade association in the world. 42 million working Americans are employed in the retail industry in the U.S. and is the largest private-sector employer. The industry accounts for $2.6 trillion to the annual GDP of the country and is statistics represent a daily barometer for the national economy.
(Adapted from Businesswire.com)