Franchise Industry CEOs Urge Congress to Address Fiscal Cliff, Comprehensive Tax Reform
FRANCHISE INDUSTRY CEOS URGE CONGRESS TO ADDRESS FISCAL CLIFF, COMPREHENSIVE TAX REFORM
Over 50 Franchise CEOs & Senior Executives Say Reform Must Lower Corporate and Individual Tax Rates
WASHINGTON, Nov. 14—Over fifty CEOs and senior executives of franchise companies, as members of the International Franchise Association (IFA), today called on Congress to address the impending fiscal cliff and urged lawmakers to commit to produce a tax reform bill that lowers both corporate and individual rates by a certain date, which would create greater long-term growth for the franchise industry.
“Resolution of the impending fiscal cliff during the lame duck session is a necessity for businesses like ours dealing with the overwhelming uncertainty of our nation’s fiscal policy. Yet addressing the fiscal cliff is only the first step toward creating long-term growth for our industry. Congress should seize this opportunity and commit to produce a tax reform bill by a certain date,” the CEOs said in a letter delivered to all members of Congress.
IFA represents the nation’s 825,000 franchise businesses, which collectively support nearly 18 million workers and generates $2.1 trillion in economic output annually. The CEOs and senior executives who signed the letter account for nearly 100,000 establishments in all 50 states. These establishments are owned by franchisees; small business owners who are primarily S-Corporations, LLPs, LLCs, Partnerships and Sole Proprietorships, and would be severely impacted by higher taxes on individuals at higher income levels.
“Raising taxes on those individual filers who earn $250,000 a year will further decrease franchise development in the coming years. Considering the average franchise, including franchise fees and development costs, is more than $500,000, Congress must car
efully weigh the consequences of raising taxes on these job creators while at the same time creating tax certainty for small business franchise owners,” the letter said.
“Many business sectors, trade groups and CEOs have recently called for tax reform and urged Congress and President Obama to work towards a deal that addresses the rising U.S. debt. IFA supports these efforts, however opposes any attempt to rewrite the tax code that does not include a lower overall rate for both corporations and individuals,” said IFA President & CEO Steve Caldeira. “As the President consistently outlined during the campaign, the small business community is a critical component of the U.S. economic recovery. As such, small business job creators should be included in any future discussions during this fiscal debate.”
Comprehensive tax reform will enable existing franchisees to unleash the full potential of the franchising industry, and open the door to prospective franchise investors, thereby creating opportunities for more small business ownership and the new jobs our country so urgently needs.
To read a copy of the letter and view the signatures,
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.