The National Retail Federation (NRF) in the US has accepted tax reform signed into law, enforced by president Donald Trump to benefit businesses, workers and consumers.
According to NRF, reducing 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 small retailers.
According to congressional estimates, a family earning the average income of $73,000 a year will see a tax cut of more than $2,000 this year.
NRF has arranged for retailer meetings with Trump and members of his cabinet, as well as an address by treasury secretary Steve Mnuchin on tax reform.
NRF president and CEO Matthew Shay said: “This is landmark legislation that will boost our nation’s economy more than anything we have seen in decades.
“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 paycheques 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.”
NRF has rallied with senators on Capitol Hill in support of tax relief for small businesses.
The association’s members include department stores, speciality stores, home goods, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the US and more than 45 countries.
Shay stated: “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 US companies throughout the economy put more Americans to work and pay them higher wages.”