Retailers in the US, US and Canada are opening more than 50 discount stores, which have the potential to create tens of thousands of jobs.
The opening of the stores are part of a push by the American retail industry to boost sales and employment in the wake of the recession, as well as in an attempt to lure customers back to the stores after years of declines.
“These are all of the small businesses, the small mom and pop shops that were losing jobs to other industries and were not getting the tax credit that they needed,” said Scott Anderson, president of the American Association of Retailing Executives.
“This is a huge win for the small business community, and it also helps to create jobs in those communities.”
The tax credits, which are tied to the number of full-time equivalent employees, are available to companies with fewer than 50 employees, but the industry is still adjusting to the new reality.
The number of new stores opening is expected to rise as more and more retail and other small businesses seek the credits, Anderson said.
“It’s a wonderful thing that these small businesses have been able to come into the fold and open a store,” he said.
The tax credit is part of President Donald Trump’s agenda to boost small businesses.
He announced in January that the first three of those new stores will be in the states of Iowa, New Hampshire and Wisconsin.
The Tax Foundation, which advocates for low- and moderate-income people, estimates that a combined $50 billion could be saved in taxes if the tax credits were extended.
Some economists argue that the tax cuts will make it harder for small businesses to compete for the same jobs as large companies, because the tax breaks are limited to the first $10,000 of an employee’s income, which is lower than what many small businesses make.
Anderson said that if the economy continued to struggle and businesses lost jobs, it would be difficult for them to make ends meet.
“The tax incentive is so important,” he added.
“We have got to get them back to work.”