because of its potential to greatly increase employer coverage costs at the end of the five-year period.

NRF also strongly opposes proposals to pay for the expected $1 trillion-plus cost of health reform through a value added tax that would drive up prices for consumers, a surtax on upper-income individuals that would affect small retailers whose business income is taxed as personal income, and a tax on alcohol and soft drinks that would drive up prices while offering dubious value for health promotion.

Pfister said a VAT would be “devastating” in the current economy. Consumer spending represents more than two-thirds of gross domestic product but has plummeted dramatically over the past tw...

because of its potential to greatly increase employer coverage costs at the end of the five-year period.

NRF also strongly opposes proposals to pay for the expected $1 trillion-plus cost of health reform through a value added tax that would drive up prices for consumers, a surtax on upper-income individuals that would affect small retailers whose business income is taxed as personal income, and a tax on alcohol and soft drinks that would drive up prices while offering dubious value for health promotion.

Pfister said a VAT would be “devastating” in the current economy. Consumer spending represents more than two-thirds of gross domestic product but has plummeted dramatically over the past two years. Placing an additional tax on consumer spending would further depress spending, and lengthen and deepen the current recession, he said.

Pfister noted that a VAT is a highly regressive tax that would hit low-income families hardest, and said it would also crowd out cash-strapped states’ ability to increase sales tax at a time when they are desperately in need of revenue.


The National Retail Federation is the world’s largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry’s key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2008 sales of $4.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.