As Congress finally wrapped its back-and-forth debate last week about how long to extend the payroll tax holiday (ultimately agreeing to a short, two-month extension with a promise to re-visit the issue in a conference committee in January, IFA President & CEO Steve Caldeira joined FOX News America Live Dec. 23 to discuss the outlook for franchise businesses in 2012. “Franchising remains a bright light in a still challenging public policy environment, but we are still nowhere near the growth rates experienced before the election” Caldeira said.
Franchises are projected to add 168,000 new jobs and 14,000 new establishments in 2012 according to IFA’s 2012 Economic Outlook for Franchised Businesses prepared by IHS Global Insight, Caldeira told FOX’s Heather Childers. Yet they still face a host of other issues that are keeping growth rates below pre-recession levels, including the health care law’s employer mandate, uncertainty about tax rates and the continued difficulty accessing credit.
“The health care law continues to loom as a disincentive to job creation, particularly for multi-unit operators due to the employer mandate and 50 employee threshold for paying a penalty,” he told FOX’s Heather Childers. “Franchise small businesses need comprehensive tax reform that lowers the corporate and individual rates and provide certainty beyond 2012,” Caldeira said.
Posted by Matt Haller, IFA Sr. Director of Communications