WASHINGTON --The National Retail Federation announced that it welcomed the focus on job creation and the economy expected in President Obama’s State of the Union Address.
“We believe the nation’s economic recovery is real and sustainable, but it needs to be protected and supported through the adoption of policies that recognize that job creation is mission-critical,” NRF president and CEO Matthew Shay said. “Every job created has a positive ripple effect throughout the economy, and the President’s promise to make jobs a No. 1 priority shows he understands that very clearly. As the industry that employs one out of every five Americans, we are confident President Obama recognizes the critical role the retail industry plays in job creation across the economy and stand ready to work with him to promote initiatives that support job growth.”
Among other proposals, Obama is expected to ask for corporate tax reform that would eliminate many current tax breaks in return for lower rates, and to seek “responsible” cuts in government spending rather than new taxes to reduce the deficit. NRF has long supported a broader corporate tax base with lower rates because it would allow businesses to make decisions based on the economic results of investment rather than tax consequences.
“The United States has one of the highest corporate tax rates in the industrialized world, harming our competitiveness around the globe and our ability to create jobs here at home,” Shay said. “Retail has one of the highest effective tax rates in the U.S., so we strongly support a simpler system with lower rates that would make it easier for our sector to grow and create more jobs.”