By: Matthew Haller and Jenna Weisbord
January 2, 2013
WASHINGTON, Jan. 2, 2013 – The International Franchise Association today applauded passage of H.R. 8, the American Taxpayer Relief Act of 2012, a bipartisan agreement to avert the fiscal cliff, prevent tax hikes on thousands of existing and prospective franchises, and make permanent most of the Bush-era tax cuts.
“Averting the fiscal cliff and making current tax rates permanent for franchise business owners and prospective investors is critical to ensuring the positive growth forecast for the franchise industry in 2013 and for consumers across America,” said IFA President & CEO Steve Caldeira. “While not ideal given it raises taxes on some of our most proven job-creating, small business owners who file as individuals, bipartisan solutions are necessary for our leaders in Washington to give confidence to America’s small business community. Failure to act could have jeopardized our industry’s growth plans and pushed the economy back into a recession.”
A report released Dec. 20, 2012, by IFA and IHS Global Insight indicated an agreement to avert the fiscal cliff was necessary for franchise businesses to grow in 2013. According to The Franchise Business Economic Outlook: 2013, franchise businesses will grow at a slightly slower pace in 2013 than in 2012, yet the industry will continue to outpace growth in other business sectors. According to the report, the franchise sector is projected to create 162,000 new jobs and open more than 10,000 new franchise businesses in 2013.