WASHINGTON — Food retailers are waiting for the other shoe to drop with regard to President Obama's call for a reduction in the corporate tax rate, according to Jennifer Hatcher, group vice president, government relations, Food Marketing Institute.
"The devil is in the details," she told SN, referring to the President's vague reference during his State of the Union speech this week to eliminating tax "loopholes" in order to fund a cut in the current 35% corporate tax rate. "Somebody's loopholes are somebody else's important deductions."
She said she expected a proposed corporate rate "in the 25% range," and said more details about what loopholes might be closed should emerge in the coming days and weeks.
The National Retail Federation in a statement said it has "long supported" an overall reduction in corporate tax rates because it would allow businesses to make decisions based on the economic results of investment rather than tax consequences. NRF also was supportive of other initiatives proposed by the President.
"We are anxiously waiting to hear the details, but the tax reform, deficit reduction, trade agreements, reduction in regulations that hamper small business, and other initiatives proposed by the President are all examples of how the government can help the private sector create jobs," said Matthew Shay, president and chief executive officer, NRF. "As the industry that supports one out of every five U.S. workers, we stand ready to work with the President and Congress to promote initiatives that put Americans back to work."
