Policy Issue

The Tax Cuts and Jobs Act

A person using a calculator.

Why predictable, pro-growth tax policy is essential


Preserving the core provisions of the TCJA is more than just smart policy — it’s a direct investment in millions of American workers, businesses and communities. Retailers thrive on stability and certainty, which are critical for long-term planning and growth.

The issue

Since its enactment in 2017, the Tax Cuts and Jobs Act has fueled growth, job creation and investment across the U.S. economy — impacting the retail industry more significantly than almost any other sector. As the nation’s largest private-sector employer, retail depends on stable, pro-growth tax policies to hire workers, invest in stores and supply chains, and provide value to American consumers.

However, key provisions of the TCJA are set to expire at the end of this year. Without congressional action, taxes will rise for families, small retailers and workers. For families, this means losing expanded child tax credits and lower tax brackets, resulting in less disposable income. For small retailers, the expiration of these provisions threatens to stifle job creation and business growth, depriving them of savings that have been reinvested into their businesses.

Why it matters to retailers

The TCJA reduced the corporate tax rate from 35% to 21%, enabling retailers to remodel stores, upgrade technology, boost wages and enhance employee benefits. These investments directly support the 55 million Americans who work in or are supported by the retail sector.

If key provisions of the TCJA are allowed to expire, the consequences will ripple across the economy. Retailers, particularly small businesses operating on tight margins, will face higher taxes at a time when they are already grappling with inflation, supply chain disruptions and workforce challenges. Consumers will also bear the burden, as retailers are forced to pass on higher costs.

Provisions like the 20% deduction for pass-through businesses and maintaining a globally competitive corporate tax rate have empowered retailers to grow their businesses, expand their workforces and reinvest in their communities. Allowing these provisions to lapse would undermine this progress, slowing hiring, curbing investment and dampening economic growth.

NRF’s advocacy priorities

NRF is committed to advocating for policies that preserve a competitive corporate tax rate and extend the TCJA’s key provisions for the benefit of both retailers and consumers.

Retailers across the country are ready to collaborate with lawmakers on a tax framework that promotes certainty, competitiveness and sustained economic growth. This includes:

  • Extending the TCJA’s business provisions, such as maintaining a globally competitive corporate rate and the 20% pass-through deduction

  • Rejecting harmful offsets, including corporate tax rate increases and limiting B-SALT.

  • Advancing pro-growth policies that drive job creation, investment, and consumer confidence.


By preserving and building on the TCJA, lawmakers can ensure continued growth and opportunity for retailers, workers and families across the nation.

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