IFA urges comprehensive approach to tax reform in comments to Ways & Means Working Groups

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FOR IMMEDIATE RELEASE


Contact:

Matthew Haller, 202-662-0770

Jenna Weisbord, 202-662-0766

mhaller@franchise.org

jweisbord@franchise.org


IFA URGES COMPREHENSIVE APPROACH TO TAX REFORM IN COMMENTS TO WAYS & MEANS WORKING GROUPS


WASHINGTON, April 16, 2013—The International Franchise Association applauded efforts by the House Ways & Means Committee to address tax reform in the 113 thCongress, saying replacing the current code with a system that is simpler and fairer for all Americans is needed to sustain long-term economic growth. Comprehensive tax reform that incentivizes and rewards entrepreneurship, investment, job creation, and does not penalize success, would enhance the business environment for franchising and the overall U.S. economy, the IFA said.


The IFA also cautioned that reform of only the corporate tax code without also simultaneously addressing the individual section of the tax code would create an un-level playing field for nearly 80 percent of franchise small business owners.


“We have significant reservations about any effort to undertake corporate-only reform without addressing the individual side of the tax code simultaneously,” said Judith Thorman, IFA Senior Vice President for Government Relations & Public Policy in comments submitted to House Ways & Means Committee Chairman Dave Camp (R-Mich.) and the Tax Reform Working Group on Small Business & Pass-Throughs Chaired by Rep. Vern Buchanan (R-Fla.) and Rep. Allyson Schwartz (D-Pa.).


“As an organization representing franchisors and franchisees of all sizes, IFA strongly believes that any efforts to overhaul the tax system should address the needs of all business owners, regardless of whether they file their taxes on corporate or individual returns. Reforming only the corporate tax code would leave small business owners who file individually with an outdated and overly complicated tax system – one that would put them at a disadvantage relative to larger entities, as well as their foreign competition.”


IFA will produce a study this spring that demonstrates the various provisions in the tax code that are most important to franchise businesses ability to create jobs faster than non-franchised businesses. The study will show the impact that higher effective tax rates on small businesses would have on future growth plans for our industry.


To view a copy of the comments, please click here.


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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.

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