The National Restaurant Association (NRA) hailed the bipartisan tax agreement that recieved final passage in the U.S. Senate, calling it a positive and effective compromise package to strengthen our economy. The Association urged quick action in the U.S. House.
“The National Restaurant Association strongly supports the tax agreement and believes it is vital to economic recovery. The Senate demonstrated overwhelming support for the agreement, and we urge the House to support this bill and send it to the President,” says Scott DeFife, executive vice president for policy and government affairs at the NRA. “The tax agreement will provide certainty for the next couple of years that both encourages business investment and allows consumers to keep more of their income, which will help spur more economic activity.”
“While the industry has been hard hit by the downturn in the economy, restaurants continue to play a significant role in the nation’s economy,” DeFife says. “We service 133 million guests every day and employ nearly 13 million people, almost 9 percent of the workforce, at 945,000 restaurant locations. In addition, the restaurant industry generates an estimated $580 billion in annual revenue with a total economic impact of more than $1.5 trillion. Restaurant operators large and small need the measure of certainty this package will bring and can ill afford a tax increase at this precarious juncture.”
The Association is pleased with the following provisions included in the package: allow businesses to fully expense capital investments in 2011; extension for 2010 and 2011 of many expiring tax provisions, including 15-year depreciation for restaurant property; extension through 2011 of the Work Opportunity Tax Credit (WOTC); extension through 2012 of the individual rates for all taxpayers; estate tax treatment for 2011 and 2012 at a 35 percent rate with a $5 million exemption; and reduction in the Social Security payroll tax for individuals from 6.2 percent to 4.2 percent in 2011.
“President Obama and Congressional leaders in both parties deserve great credit for working together to enact an effective tax compromise to strengthen our economy,” DeFife says. “We will continue to work for action on important items missing from the package that should be addressed as well to ensure growth, specifically repeal of the onerous 1099 reporting requirement enacted as part of the new healthcare law.”