“Build Back Better Act” Increases Taxes for Restaurants, No RRF Money
Congress is working on the $3.5 trillion “Build Back Better Act”, and a vote could come later this month. The bill makes important investments in things that will benefit our country and the restaurant industry – including pre-K education, greater access to childcare, and improvements in public transit.
But the bill is lacking for us in two significant areas … it does not replenish the Restaurant Revitalization Fund (RRF), and it raises taxes on small businesses at a time when our industry truly cannot bear more financial strain. We have produced a 5-minute explainer video that walks through how the tax changes would affect your bottom line.
Earlier this week, the National Restaurant Association released a new survey of the state of the industry. The conclusions are bleak – deteriorating business conditions are impacting operators’ outlook to the point that they state a recovery from the pandemic will be prolonged well into 2022. Overall, a majority of full-service and limited-service operators say business conditions are worse now than three months ago. These findings come on the heels of rising food and supply costs, a well-documented labor shortage, nearly $300 billion in lost sales, and debilitating debt that continues to mount.
We released a public letter to congressional leaders sharing the results of our findings and our strong objections to the Build Back Better Act as written.
Congress can change the bill to help our industry – but we need to be vocal, and we need to act now. The National Restaurant Association and our state partners are engaging policymakers to press for a solution that will improve, not jeopardize, the efforts of restaurant owners to keep their doors open.
We try not to send these types of requests too frequently, and only when your input can truly make a difference. I urge you to take a moment, review the materials, and lend your voice to the cause.
As always, thank you for everything you do for this industry.
Executive Vice President of Public Affairs
National Restaurant Association