WASHINGTON, Dec. 7, 2010—The International Franchise Association today hailed the announcement that President Obama and congressional leaders have reached an agreement to extend the current tax cuts for two years.
“This bipartisan agreement between President Obama and congressional leaders would provide much-needed economic certainty for the $2.3 trillion franchise industry that is struggling to recover from the recession,” said IFA President & CEO Steve Caldeira. “However, as the best solution going forward, IFA supports permanent extension of the current tax rates so that small business owners can assess long-term business options to help them grow and create new jobs across the country.”
While full details of the package are being finalized, according to the White House, tax rates for the following key areas for the franchising industry would be extended for two years, including:

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  The current income-tax rates for all taxpayers
  
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  The estate tax rate would be set at 35 percent for estates over $5 million
  
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  Payroll tax reduction which cuts the 6.2 percent Social Security tax levied on a worker’s wages to 4.2 percent (the employer ’s half of the payroll tax would not be changed)
  
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  Capital gains and dividends tax rates for all earners at current rates
  
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  The $1,000 child tax credit with the $3,000 refundability threshold
  
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  Research & development tax credit
  

In addition, the agreement includes a provision for companies to claim deductions on 100 percent of most kinds of investments in plants and equipment.
“We urge Congress to quickly act to finalize the details of this agreement and provide tax certainty before the current tax rates expire at the end of the year,” said Caldeira. “By keeping the current tax rates, Congress can help ensure that local franchise businesses continue create jobs and grow the economy.”

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About the International Franchise Association







The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs.  Through its awareness campaign highlighting the theme,


Franchising: Building Local Businesses, One Opportunity at a Time,




IFA promotes the 21 million jobs and $2.3 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.