For immediate release







Contact:
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770





aharrison@franchise.org


mhaller@franchise.org


twitter.com/franchising411


 

WASHINGTON, Jan. 31.-The International Franchise Association, representing the nation’s 825,000 franchise establishments which support nearly 18 million jobs, today called on Congress to pass a complete package of key tax-extenders critical to small businesses, rather than a piecemeal, one-off approach.

“Franchise small business owners need certainty in the tax code in order to make hiring decisions,” said IFA President & CEO Steve Caldeira. “By allowing the extenders package to go unaddressed last year, lawmakers placed a great deal of uncertainty on small business owners. Moving forward now with only some of these extenders, while leaving others aside, would only heighten the uncertainty causing many small business owners to delay plans for job creation.”

IFA’s call to action follows an announcement by President Obama today that his Administration’s 2013 budget proposal to Congress will include only some tax extenders supported by the small business community such as extending for a year the ability of all businesses to immediately deduct all of the costs of equipment and software purchases.

IFA believes the package of tax extenders should include provisions such as the 100 percent bonus depreciation, 15-year straight-line recovery for qualified leasehold improvements, restaurant buildings and retail improvements, and the Work Opportunity Tax Credit for lower-skilled workers and the long-term unemployed, among others.

Moving forward, IFA will continue to urge Congress to embrace efforts to undertake comprehensive tax reform that lowers the tax rate for all businesses and individuals. Most franchise businesses file their taxes as LLCs and S-corporations, and do not pay the corporate income tax. Instead, they declare their business profits on the owners’ personal income tax return and are taxed at the personal income tax rate.

“With Bush-era tax rates set to expire, the time is now to address tax reform in a comprehensive manner to ensure we put our economy back on the road to long-term job creation,” said Caldeira.

IFA is a leading member of the Broad Tax Extenders Group, which represents business, individuals, organizations,and community groups which sent a letter to Congress before the 2011 adjournment urging Congress to pass the expiring tax provisions. These key incentives have an impact on a wide range of activities that help spur economic growth, job creation, and job retention. Despite bicameral, bipartisan support for these provisions, Congress failed to extend them.
 

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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 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.