Retailers Opposes Corporate Tax Rate Increase In Biden’s Budget


A group of retailers is objecting to President Biden’s proposed budget for fiscal year 2024.

“President Biden’s proposed tax increase would make the U.S. corporate tax rate among the highest in the industrialized world. Raising the corporate tax rate from 21% to 28% would disproportionately impact retailers and their employees,” the National Retail Federation said in an announcement.

According to the group, “before passage of the Tax Cuts and Jobs Act of 2017, retailers paid one of the highest effective tax rates of any industry and benefited from few of the tax incentives, deductions and credits in the Internal Revenue Code.”

The group says the Biden plan to ratchet the rate back up “would result in a loss of retail jobs and the closing of stores, and would undermine retailers’ ability to invest in expanded ecommerce capabilities.”

Retailers note the fact that a Federal Reserve Board study found that a corporate tax rate increase would be ‘uniformly harmful to workers,’ costing a typical American family thousands of dollars a year in lower wages.

The group, which describes itself as a “voice for retail,” is calling for the preservation of the corporate tax rate at 21%.