Retailers press supercommittee to focus on jobs, economic growth

Most important for the retail industry is a fair tax system instead of one “riddled with special breaks” that could hamper job creation, he said.  

“As an industry that accounts for one in four U.S. jobs and a fifth of gross domestic product, we are ready to do our part and don’t want to see job creation held back,” Shay said. 

Shay urged the 12-member congressional panel to consider corporate tax reform that would eliminate special tax breaks for certain industries. 

The NRF said lawmakers should reject proposals for a value added tax (VAT) or other consumption tax. 

An Ernst & Young study conducted for NRF last year found that adding a VAT to reduce the deficit would cause the loss of 850,000 jobs in the first year, reduce GDP for three years and reduce retail spending by $2.5 trillion over the first 10 years.

The group also wants to see legislation that would make it easier for states to require out-of-state Internet retailers to collect sales tax on sales to their residents. 

Lastly, the NRF is asking for a change to the healthcare law’s employer mandate provision that requires most employers to provide government-mandated levels of healthcare coverage for their employees starting in 2014. 

“With businesses unable to raise prices to cover the increased payroll costs in the current economy, the requirement will force many companies to reduce the size of their workforces,” Shay said.