Both Congress and President Obama are being cheered by the National Grocers Association for passing a bill that avoided the dreaded fiscal cliff. The American Taxpayer Relief Act (H.R.8) is being characterized by the NGA as ‘net positive’ as it has several critical tax provisions backed aggressively by the group.
The President of the association, Peter Larkin, commended NGA membership who heard the call to rally up grassroots action last month and contacted representatives and senators. Larkin said that the wholesalers and retailers had advocated for some provisions and exemptions that are now permanent. Some of the tax provisions include New Market Tax credits, charitable donations of food, Work Opportunity Tax credit, section 179 expensing and bonus depreciation. The provisions are said to be a catalyst for the industry to hire workers and reinvest capital. In addition, positive steps include reforms to dividend and capital gains taxes, as well as an extension of one year for the Farm Bill.
However, Larkin did concede that a 0.9% surtax that began 1st January through the Affordable Care Act and increased tax on people making at least $400,000 and $450,000 for couples were barriers to the association’s tax reform goals. He pledged the NGA’s collaboration with Congress, even with difficult concerns for it ahead, due to debt ceiling and delayed sequestration, and financing the government past 27th March, new Farm Bill and full tax reforms.
The NGA said that it wanted to work closely with the administration on these issues and still ensure that the industry players are not inhibited in their ability to create jobs and grow businesses.