The National Retail Federation welcomed President Bush’s focus on the economy in Tuesday’s State of the Union address, saying his proposals could significantly bolster the U.S. economy.
“The President said it’s time for American businesses to hang out the help-wanted sign,” NRF President and CEO Tracy Mullin said. “We are calling on Congress to help us do that by passing economic stimulus legislation that puts money into the pockets of consumers, where it can be spent on goods and services that will create jobs throughout the economy. Accelerating implementation of income tax cuts, elimination of the marriage penalty and increasing the child tax credit will do that.
“Many retailers support the long-term benefits of eliminating the double taxation of stock dividends, and the boost that could give to the market,” Mullin said. “But the consensus among most of our member companies is that the immediate stimulus brought by speeding up the cuts already approved under the 2001 tax cut package will be of greater benefit, both to consumers and businesses.
“The President is right: cutting taxes gives Americans more money to spend,” Mullin said. “Every dollar taken in taxes is a dollar taken out of the economy. Consumer spending represents two-thirds of that economy, and every product on the retail shelf represents dozens of jobs in sectors ranging from manufacturing to transportation to finance.”
