NRF Welcomes Obama Job Proposals, Calls for Private Industry to Do its Part

September 8, 2011

Tools

WASHINGTON--(BUSINESS WIRE)-- The National Retail Federation welcomed jobs proposals President Obama is expected to make during a speech before a joint session of Congress tonight, and urged the Administration, House and Senate to work together on initiatives to put Americans back to work and bolster the economy.

“The President has put together a package of initiatives that will help put Americans back to work,” NRF President and CEO Matthew Shay said. “We believe the President is earnest in his desire to get the economy back on its feet and we appreciate that. But we realize the Administration and Congress can’t simply flip a switch and make jobs happen. We in the private sector have to do a lot of the heavy lifting on our own to make this happen. As an industry that supports one in four American jobs and contributes nearly 20 percent of GDP, we are willing to do our part to make these proposals work.”

President Obama’s proposals include a number of initiatives NRF is on record as supporting:

NRF supports extension of the 2 percent reduction in workers’ share of payroll taxes, but wants the reduction expanded to include employers’ share. While the reduction for workers helps support consumer spending, giving employers a reduction would have a more direct impact on job creation because companies could use the savings to hire more workers.
NRF supports improvements to transportation infrastructure, which would create jobs that give spending power to newly hired workers while also eliminating bottlenecks that slow delivery of merchandise to retail stores and drive up prices.
NRF supports tax credits for employers who hire and tax assistance such as continuing to allow businesses to deduct the full value of new equipment and property improvements.
NRF supports extension of unemployment benefits, which help support workers still looking for a job and help sustain consumer spending.

In addition to initiatives expected in tonight’s speech, NRF has made a number of additional recommendations on steps to help create jobs. Earlier this week, NRF wrote to the congressional “supercommittee” encouraging members to go beyond deficit reduction and focus on issues that would boost the economy and support job creation. NRF asked the committee to consider corporate tax reform that would broaden the tax base by eliminating special tax breaks held by a few industries in return for lower corporate tax rates for all. Retailers would pass the savings along in lower prices, increasing demand for products and helping create jobs all along the supply chain of companies that supply retailers. NRF also asked for approval of the Main Street Fairness Act, which would help preserve local jobs by requiring Internet sellers to collect sales tax the same as local stores, and elimination of the employer mandate provision of health care reform, which will force many employers to reduce their workforces.

NRF has also called for swift approval of pending free trade agreements, which would boost employment by increasing export opportunities, and for the State Department to eliminate delays in processing visa applications that currently limit foreign tourists’ ability to visit the United States and spend in U.S. stores.

As the world’s largest retail trade association and the voice of retail worldwide, NRF’s global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents an industry that includes more than 3.6 million establishments and which directly and indirectly accounts for 42 million jobs – one in four U.S. jobs. The total U.S. GDP impact of retail is $2.5 trillion annually, and retail is a daily barometer of the health of the nation’s economy. www.nrf.com.