Last updated on August 26th, 2022 at 09:28 am
President Obama released on Tuesday a proposal that attempts to simplify the tax code for American businesses by reforming only corporate tax rates. Though the National Grocers Association (NGA) says efforts to lower the top corporate tax rate from the highest in the world at 35 percent to 28 percent is a step in the right direction, NGA is disappointed that the president’s proposal did not include relief for Main Street America, particularly businesses operating as pass-through entities, such as S-Corps and LLCs, which are taxed at the individual rate.
Nearly half of NGA members operate as pass-through entities and experienced a tax increase from 35 percent to 39.6 percent in a last-minute deal to avert the fiscal cliff in January. As it is, businesses filing taxes individually are already paying higher rates than C-Corps.
“NGA supports the efforts of Chairmen Camp and Baucus to enact tax reform that is comprehensive. NGA has long said that tax reform must be balanced, fair, equitable and provide lower rates for both C-Corps and pass-throughs so grocers can continue their commitment to serve their consumers, communities and employees as they do every day. Simply put, tax reform that does not provide relief for pass-through entities is a non-starter,” said Peter J. Larkin, president and CEO of NGA. “NGA looks forward to continuing to work with Congress to enact meaningful comprehensive reform that enables independent grocers to grow their businesses and create jobs.”
In March, NGA released a report titled “Principles of Tax Reform for the Independent Grocer,” which outlines tax principles important to independent grocers.
