The NRF nudges Congress to take action on TCJA
The National Retail Federation has called on D.C. legislators, urging them to permanently extend the Tax Cuts & Jobs Act, a law that has helped power growth, job creation and investment across the U.S. retail industry, the NRF writes in an April 7 letter to Congress.
Enacted in 2017, the TCJA lowered the corporate tax rate from 35% to 21%. The NRF says retailers have used these savings to remodel stores, upgrade technology, and increase wages and benefits.
With key TCJA provisions set to expire at the end of the year, the NRF fears that without congressional action, businesses and consumers would be hit with a staggering $4 trillion tax hike over the next decade, the letter says.
The retail industry contributes $5.3 trillion annually to the U.S. economy and supports 55 million American jobs. The NRF argues that making the TCJA tax provisions permanent would provide businesses with the certainty they need to continue investing in their industry.
Powersports manufacturers, dealerships, and the aftermarket play a considerable role in the country’s retail economy. Fortune Business Insights estimated that the global powersports market generated $37.96 billion in revenue in 2023, with North America accounting for nearly 56% of the global market.
The NRF is also concerned about the potential limitations put on business deduction for state and local taxes (B-SALT) as a revenue offset. It claims B-SALT is not a loophole or a tax preference, but a basic cost of doing business. Capping B-SALT could raise the business tax rate from 21% to as high as 26%, according to the American Action Forum.
