Passage of the tax reform act by the U.S. House and Senate on Dec. 20 was hailed by the National Retail Federation as a boon for retailers, particularly SMBs.
“Passage of tax reform is a major victory for retailers who currently pay the highest tax rate of any business sector, and for the millions of consumers they serve every single day,” said NRF President and CEO Matthew Shay in a statement. “Our priorities were clear: reform must jumpstart the economy, encourage companies to invest here in the United States, increase wages and expand opportunities for employees, and protect our small business community, of which the vast majority are retailers. That’s exactly what this legislation will achieve.”
The NRF also applauded individual tax cuts that will, at least temporarily, provide lower rates for middle-income earners. “This historic tax reform will put more money in the pockets of consumers — the best Christmas gift middle-class Americans could ask for this holiday season,” said Shay.
The association has long lobbied for tax reform legislation. Prior to the bill’s final passage, NRF Senior Vice President for Government Relations David French praised the bill’s provisions to reduce the tax burden for small businesses and simplify the tax rules that apply to them.
“The United States has the highest corporate income tax rate in the industrialized world, which causes U.S. companies to move investment out of the country and is a disincentive for foreign companies to make larger investments here,” said French in a statement. “Reducing the corporate rate will help attract investment to the U.S., which will help increase wages and increase consumer spending.”
The bill is expected to be signed by President Trump by Christmas.