RILA supports meaningful, broad-based reform of both the corporate and individual tax code to reduce burdensome complexities and spur investments that will promote job creation.
Corporate Tax Reform
With the dubious distinction of being the country with the highest effective tax rate in the industrialized world, the U.S. corporate tax code is in critical need of a fundamental overhaul. The combination of high rates, repeated Congressional changes, and constantly expiring provisions depress business investment and makes long-term planning nearly impossible for business taxpayers.
The retail industry faces additional challenges due to its disproportionately high domestic effective tax rate. At 36.4 percent, the retail industry pays a significantly higher effective corporate income tax rate than most other industry sectors. In fact, the retail industry’s effective corporate tax rate is nearly 10 percentage points higher than the average for all other industries.