“Lower corporate tax rates for retailers would mean lower prices for consumers, and that would result in increased demand for merchandise, helping to create jobs throughout the economy,” NRF President and CEO Matthew Shay said. “High taxes drive up costs and make it difficult to create the jobs out-of-work Americans are looking to fill. Lower taxes will make U.S. businesses more competitive at home and abroad and will result in a more prosperous America.”
President Obama released his corporate tax reform plan on Wednesday, saying that the reforms will reduce tax rates from 35 percent to 28 percent. Some critics say that while the plan seeks to eliminate loopholes, new loopholes may emerge.
“The whole idea of corporate tax reform is to get ride of loopholes, and this plan is adding loopholes back in,” Martin Sullivan, a contributing editor at publisher Tax Analysts, said, according to USA Today.
Shay said that while the budget is a controversial issue, tax reform is necessary to ensure U.S. competitiveness.
“American companies face the second-highest corporate tax rates in the world, and virtually everyone agrees that the time has come to do something about it,” Shay said, USA Today reports. “Tax reform is a chance for the two parties and all factions to work together to help restore the United States’ leadership in the global economy.”