and the Administration should recognize the importance of growing franchise
businesses and ensure that tax policy does not impede their growth. The
International Franchise Association encourages Congress to pass revenue-neutral
comprehensive tax reform. Since more than 80 percent of franchise
businesses declare their business income on their personal income tax return,
reform of both individual and corporate rates is needed to ensure that
franchise owners and other businesses organized as pass-throughs are not
disadvantaged by an approach that only reforms corporate tax rates.
ask Congress and the Administration to address corporate and individual tax
reforms as a package and not with piecemeal fixes. Any effort to reform that
removes important business tax deductions should lower the overall tax rate for
both corporations and individuals.
has identified updating the current tax code as a priority in this Congress.
IFA has taken a leadership role in pushing for reforms that impact both the
individual and corporate portions of the code, as the franchise business model
requires the successful partnership of franchisors (C-Corporations) and
franchisees (primary S-Corporations, LLP's and LLC's, Partnerships and Sole
goal in reform is to have a simplified tax code that lowers the statutory rates
both corporations and pass-through businesses pay, while the revenues the
federal government takes in remain neutral. The franchise industry is united in
its commitment to comprehensive tax reform and would oppose any attempt to
rewrite the tax code that does not include a lower overall rate for both
corporations and individuals.
efforts at tax reform must be comprehensive - both corporate and individual -
to serve the needs of the franchise community. Renewing America's
competitiveness through tax reform and job creation is crucial, but reform
should not pick winners and losers between large and small businesses.
For more information, please contact Jay
Perron, Vice President of Government Relations and Public Policy
at firstname.lastname@example.org or (202)662-0797