NRA achieves priorities in tax relief bill

(Washington, DC) Calling it a major victory and saying that it will spur continued growth of the restaurant industry while putting more money into the pockets of the industry's 11.3 million employees, the National Restaurant Association applauded Congress for passing the Bush tax plan.

Many of the items in the president's tax bill were championed by the National Restaurant Association during several meetings with President Bush, Association Board members and Association staff. The Association and its leadership have met personally with President Bush six times over a period of 11 weeks.

"The Association has strongly supported the president's tax package and worked hard to see that it passed through Congress," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "The tax package will greatly help the nation's restaurateurs and their employees and any tax relief for restaurant owners and employees will multiply throughout the economy."

Among the issues included in the final tax package and supported by the National Restaurant Association are:

Elimination of the estate tax: The estate tax, or death tax, has long been a thorn in the side of America's small businesses, many of which are family-run restaurants. Its repeal has been a top priority of the National Restaurant Association. The death tax punishes businesses for being successful and creates a disincentive for expansion and job creation. The Bush tax bill increases the exemption and lowers the rates for the estate tax. Currently, $675,000 of assets are exempt from the estate tax. The tax bill raises the exemption to $1 million in 2002, $1.5 in 2004, $2 million in 2006 and $3.5 million in 2009. A full repeal of the estate tax will take effect in 2010.

Reducing the marginal tax rates: Across-the-board tax cuts will greatly benefit the restaurant industry's 11.3 million employees. According to Association estimates, a waiter or waitress could reduce his or her tax obligation by as much as one-third under the Bush tax plan. The rate cuts will also be of great relief to those restaurant operators who file as "S" corporations.

Doubling the existing child care tax credit: Tax provisions which help to meet the needs of a changing work force will also help employers retain employees. In today's work force, many workers believe they are being locked out of employment opportunities because of the increasing cost of child care. By doubling the child care tax credit, the Bush plan will help alleviate the financial burden and stress for working families.

Pension reform: The bill increases IRA contribution limits, expands small business retirement plans, increases portability, makes pensions more secure, and cuts red tape to make it easier for employers who want to establish pension plans for their employees. This is another pro-employer/pro-employee issue for the Association that will put more money into the pockets of employees and allow restaurant operators to be more competitive in recruiting and retaining employees.

"The passage of this tax bill is a tremendous victory for the restaurant industry as a whole," Anderson said. "The president and Congress saw how important across-the-board tax cuts would be to the industry, as it is the largest employer in the country after the federal government. This victory underscores the message of the Association's cornerstone initiative, showing that the restaurant industry is truly the cornerstone of the economy, career opportunities and the cornerstone of our communities."