Retailers outline preferences on tax reform

Retailers are urging Congress to undertake an overhaul of the tax code this year and have outlined a list of preferences for the highly anticipated debate. 

The National Retail Federation (NRF) released a list of its top tax code priorities on Monday, arguing it would go a long way toward boosting the economy and creating jobs as the nation continues to battle back from the downturn. 

“We want to put the economy on a trajectory to grow again, and tax reform and tax certainty are an essential part of the formula for growth," said NRF President and CEO Matthew Shay.

"We can’t achieve that goal by having political battles year after year over temporary, last-minute measures. This is the year for fundamental, comprehensive tax reform that will settle our nation’s tax policy questions on a long-term basis and provide businesses the certainty they need to grow and create the jobs that are so badly needed.”



Shay said protracted fight over the fiscal cliff damaged consumer confidence and cut into holiday spending. 

The plan, adopted during NRF's annual convention in New York City, calls for the elimination of tax credits and incentives that favor some industries and calls for replacing them with substantially lower tax rates.

Lawmakers should steer clear of a consumption tax and should move to eliminate temporary tax provisions to provide greater certainty for businesses as they make hiring and investment decisions this year.

Any tax reform legislation should provide adequate transition rules so businesses do not face large tax burdens based on investment decisions made in prior years. 

President Obama and congressional Democrats and Republicans have said they want to begin tackling tax reform this year.