While the National Retail Federation welcomes the agreement made between the White House and Congress in regards to the looming fiscal cliff, they caution still more needs to be done in order to restore the economy.
In a late night vote, the House of Representatives approved a bill that would avoid widespread tax increases and deep spending cuts.
Matthew Shay, NRF president and CEO, said in a press release if the government did not reach an agreement “the consequences would have been devastating for businesses and consumers alike.”
According to CNN, the plan maintains tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000, it will, however, raise taxes for those that make more. CNN said that this is the first time since 1993 that the federal income tax rates were increased.
Shay said in the statement, “This agreement might not be seen as perfect by everyone, but it gives American consumers and businesses the certainty they need to put worries over this issue behind them and get on with the business of growing our economy and creating jobs.”
Although a deal to avoid a fiscal disaster has been struck, Shay said in the release, it’s far from a permanent solution. “Congress and the White House still need to develop long-term plans dealing with tax reform and other fiscal issues. We have avoided the immediate crisis, but there’s much more to be done before our economy is fully restored.