FOR IMMEDIATE RELEASE
Contact:
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
aharrison@franchise.org
mhaller@franchise.org
@franchising411
IFA CALLS FOR COMPREHENSIVE TAX REFORM AS U.S. TAX RATE TOPS THE WORLD LIST
WASHINGTON, March 30, 2012 – International Franchise Association President & CEO Steve Caldeira released the following statement today ahead of the U.S. corporate tax rate becoming the world’s highest on April 1, 2012:
“Next week, the United States tax rate will be the highest in the world. Our tax code has simply grown too complex and unwieldy for the American economy to move forward at positive and sustained rates of growth over the long-term. For the franchising industry, which includes more than 825,000 establishments supporting nearly 18 million workers, that contribute $2.1 trillion in economic output to the U.S. economy annually, the current tax code makes it increasingly challenging for the industry to grow, particularly in the current legislative and regulatory environment.
“Without action to reform the tax code at both the corporate and individual levels, we are making it harder for prospective franchisees to get into franchising, for existing franchisees to expand their operations or make capital investments in their current establishments, and for franchisors to make decisions about growth plans both domestically and internationally.
“IFA believes the time is now for comprehensive tax reform that lowers the overall rate for corporations and individuals and simplifies the tax code. Many of America’s small businesses file their taxes as LLCs, partnerships, S-corporations or sole proprietorships. They 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. Congress needs to act now.”
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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.