Convenience Store Decisions, February 2018
Operations Taxes Tax Reforms Impact on Customers Because convenience stores bank on Americas disposable income for much of its profi ts the effect of tax reform could be signifi cant By Mark Battersby Contributing Editor T he passage of the massive Tax Cuts and Jobs Act TCJA received a mix of publicity Even now some groups claim any tax savings are illusionary with the middle class being hit especially hard in states with high taxes But do the lost personal deductions outweigh the tax cuts and have an adverse effect on disposable income And because convenience stores bank on Americas disposable income for many of its profi ts the impact of TCJA could be signifi cant Economists surveyed by the Wall Street Journal recently predicted that 2018 would see solid growth and a continued decline in the jobless rate One factor in that rosy forecast was the tax cut bill signed into law this past December which most say will boost the economy for several years at least Growth in healthy food and beverages sales led to positive overall sales at convenience stores in 2017 and retailers expect the momentum to continue in 2018 according to a survey of retailers released by the National Association of Convenience Stores NACS But questions are now being asked about the impact the recently enacted tax reforms will have on convenience store customers The tax reform bill was designed to stimulate economic growth by encouraging businesses to invest in the domestic economy Some economists are predicting that because of new tax reform measures U S businesses will have more net income and more profi ts to allocate But the question remains will the increased income and bigger profi ts in the business sector fl ow through to the consumers that constitute the customers of the average convenience store business Despite the hue and cry the predictions of higher tax bills and the alltoo real loss of many itemized personal deductions experts say that the Fast Facts Some economists are predicting that because of new tax reform measures U S businesses will have more net income and more profi ts to allocate Under the new law taxpayers will see seven tax brackets but at reduced rates with the highest tax bracket dropping to 37 from the former 396 Of those 5 who will see a higher tax bill its mostly affl uent taxpayers in high tax states such as New York New Jersey and California who are having their state and local tax deductions capped 70 Convenience Store Decisions February 2018 cstoredecisions com
You must have JavaScript enabled to view digital editions.
