The National Retail Federation (NRF) welcomed a proposal to reform the nation’s tax structure announced by House Ways and Means Committee Chairman Dave Camp, R-Mich., saying it would strengthen the economy and jobs.
“This plan would give our nation the simpler, fairer tax system that we desperately need, but it’s about far more than just tax reform,” said NRF President and CEO Matthew Shay. “This is the foundation for job creation, increased take-home pay and business growth that would restore the prosperity that has slipped away for far too many American families.”
“This is good for the economy, and what’s good for the economy is good for retail,” said Shay. “Consumers with money in their pockets buy more, and the products they buy mean even more jobs, not just in stores but in virtually every sector as the ripple effect spreads out. Moves like this not government-ordered wage hikes and other mandates that erect barriers to job creation are the way to get America back on track,” Shay said.
Legislation proposed by Camp would lower the current top corporate tax rate from 35 percent to 25 percent in return for eliminating a wide range of tax deductions and credits.
The congressional Joint Committee on Taxation estimates that the proposal would boost GDP by $3.4 trillion over 10 years, create 1.8 million jobs, boost the median take-home income of a family of four by $1,300 annually and result in a 2.1 percent increase in consumer spending. By contrast, a Congressional Budget Office report found that increasing the federal minimum wage to $10.10 per hour from the current $7.25 would cost the nation 500,000 jobs.
“A minimum wage increase would boost income but cost jobs while tax reform boosts income and jobs at the same time,” Shay said. “You don’t have to be an economist to see which is the better choice.”