Peter Larkin, president and CEO of the National Grocers Association (NGA), released a statement today in response to a move by President Obama that calls for increased taxes on entrepreneurs.
Larkin disagreed with the measure: “Independent retail grocers and wholesalers have continued to innovate and invest in their local communities by opening new stores, renovating existing stores and hiring workers.” President Obama’s new tax increase would target these pass-through entities, raising taxes for joint filers with income above $250,000, Larkin said.
The tax increase would result in these pass-through businesses diverting capital to pay the tax “instead of growing their businesses and creating jobs,” according to Larkin.
With more than 50 percent of NGA’s members affected, the impact will be felt nationwide. Larkin urged NGA members to “call on Congress to act now and extend the current individual tax rates for all income levels,” hoping that Congress can then address a comprehensive tax reform plan.
Larkin added that raising taxes now, when the economy is weakened with unemployment still high, should be rejected by Congress.