National Retail Federation CEO: Trump tax cuts will help retail transform
Matt Shay, chief executive officer of the National Retail Federation, says that retail is not dying – it is transforming. His comments were made to Stuart Varney on the Fox Business Network, and came shortly after President Donald Trump outlined his tax reform plan. According to Fox, one of the industries that could benefit the most from President Trump’s plans is retail.
Dedicated ecommerce companies like Amazon and eBay are drastically outperforming the market so far in 2017
SOURCE: Yahoo Finance
Shay described Trump’s tax cuts as “good for consumers, for small businesses, good for investment, and job creation”. The President plans to simplify the tax on individuals from seven rates (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) down to three (10%, 25%, and 35%). As shown in those figures, this is a big tax cut for wealthy Americans in the top tax bracket. He also plans to cut the top tax rate for all businesses down to 15% - considerably lower than its present rate of 35%.
“This tax code needs to be blown up and we need a blank sheet of paper and we should start over with it if we can do that. If we can’t do that, we at least need to lower the rates, make ourselves more competitive. We create more jobs in this economy than any other industry and that’s why we’ve been out pushing for reductions and rates, and transformation of the code. This will be great for us.”
“This is not an us versus them mentality. This is consumers changing their behavior, and certainly there are big players like Amazon out there, but there are enormously big players like Walmart and Target and Macy’s and Home Depot who are investing extraordinarily in this experience, and they’re playing there too and growing very, very rapidly. So, this is where consumers are, but the retail industry is not going to go away, it’s just going to continue to transform.”
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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