With nearly 18 million Americans in retail jobs, more than 10 million additional jobs supported by retailers, and billions of dollars paid in federal, state, and local taxes, few industries have a greater impact on the U.S. economy than retail. However, the retail industry’s effective tax rate, at 36.4 percent, is the fourth highest domestic effective tax rate of all the 18 major U.S. industrial sectors. This unduly burdensome rate undermines growth and job creation within the private sector’s second-largest employing industry.
RILA believes that enacting comprehensive tax reform
would stimulate job growth in the retail sector in
addition to the many industries and communities
supported by retail. According to
a PwC report, such
reform could give the economy a much needed boost
by creating more than 300,000 jobs in year one, as well
as increase workers’ salaries and wages by more than
Retailers have long supported comprehensive tax reform that will benefit industry and consumers alike. While we’re pleased with some aspects of the House Republican Tax Reform Blueprint — specifically reducing the corporate tax rate to a globally-competitive 20% and the territorial tax approach — the inclusion of a border adjustable tax will significantly hurt retail customers and some of the country’s largest employers.