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NRF: Consumption tax system would cause retail spending, jobs to fall

BY Marianne Wilson

The National Retail Federation continues to lead the charge against the consumption tax and the proposed border adjustment tax.

The NRF on Thursday today urged Congress to focus on updating the existing federal income tax system rather than moving toward a consumption tax. Under either approach, Congress should reject a proposed $1 trillion border adjustment tax that would drive up prices for consumers and cost the economy jobs, NRF said.

“The most important aspect of any tax reform measure is its impact on the economy, jobs and the consumer,” NRF senior VP for government relations David French said, adding that consumer spending represents two-thirds of the economy and that retail supports one out of four U.S. jobs.

“Tax reform that shifts the burden of the corporate tax to the consumer would present an unnecessary risk to our nation’s economy,” French said. “Instead, we support a reform of the current income tax structure by providing a broad base and low rates. We believe that approach rather than a shift toward a consumption tax would bring the greatest economic efficiency and stimulate economic growth without causing the economic dislocations inherent in the transition to a new tax system.”

French’s comments came in a letter to the House Ways and Means Committee, which was scheduled to hold a hearing Thursday on “How Tax Reform Will Grow Our Economy and Create Jobs.” The hearing is expected to focus on the “Better Way” tax reform sponsored by Speaker Paul Ryan, R-Wis., and committee Chairman Kevin Brady, R-Texas.

The Ryan-Brady plan would transition the United States from its longstanding income tax system toward a consumption tax system. French said studies conducted for NRF show that alone would cause retail spending and employment to decline for an estimated six years. The plan also includes a proposal for a 20% border adjustment tax on imports, which French said would cause an even steeper decline in spending. The border tax proposal is expected to be the subject of an additional hearing next week.

“We believe there are better options for tax reform that would achieve economic growth and not shift the burden to the consumer,” French said. He recommended that lawmakers consider as examples the 1986 Tax Reform Act enacted during the Reagan administration and the Tax Reform Act of 2014, which was proposed by former Ways and Means Chairman Dave Camp, R-Mich., but never saw passage.

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U.S. demand for hardware to reach $13.7 billion in 2021

BY HBSDealer Staff

A new Freedonia report points to continued growth in demand for hardware, encouraged by the rebound in building construction activity.

The report forecasts that U.S. demand for hardware will reach $13.7 billion in 2021.

In addition to added demand for building products and furniture (and related hardware), growth in motor vehicle and other transport equipment output will also contribute to hardware demand.

Of these segments, the fastest demand growth will occur in furniture hardware, which continues to recover from the declines of the 2007-2010 period.

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Stihl’s new mower is charged with features

BY HBSDealer Staff

Stihl Inc. is a brand best known for its chainsaws, it's gasoline-powered handheld equipment and its policy of distribution to independent dealers. More recently, the company is leading a charge in battery-power, with its Stihl Lightning Battery System.

A new lawn mower introduced this spring is the third iteration of batter-powered Stihl lawn mowers, and it promises the ability to cover more lawn in less time.The sweet spot for the Stihl RMA 510 is small to medium-sized suburban yards.

The mower, with its 21-inch deck, can cut up to 5,100 square feet of lawn on a single charge. It also includes a clever holding slot for a second battery, so users can swap in a charged battery in a few seconds. The mower features a commercial-grade 1,100-Watt brushless electric motor with ECO Mode.  One of the advancements of the RMA 510 is its ability to detect thick rough, and act accordingly.

"The mower can automatically reduce power when mowing through light grass and adjusts to full power in taller grass, which helps to conserve and extend battery life.

The product carries an MSRP of $320 without the battery and charger, and $550 fully loaded. 

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R.Inskeep says:
Oct-12-2017 11:51 am

batteries same as
batteries same as 16"/18"chain saw

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