Today, The Retail Industry Leaders Association (RILA) joined more than 120 other trade associations and businesses to launch Americans for Affordable Products, a national campaign to stop the border adjustable tax or BAT. The diverse coalition will focus on educating lawmakers on the harmful impact of the new tax, specifically the resulting higher costs consumers will face on family essentials, such as food, gas and clothing. The border adjustable tax is a component of the tax reform proposal under consideration in the U.S. House of Representatives.
“The retail industry pays among the highest effective tax rates of all industries. We, therefore, enthusiastically support reforming the current tax code and welcome the fact that both the President and Congress do so as well,” said RILA President Sandy Kennedy. “However, the border adjustable tax is harmful, untested, and would put American retail jobs at risk and force consumers to pay as much as 20 percent more for family essentials. We are committed to working with Congress to ensure they understand the impact of this proposal and to pursue tax reform that reduces rates and benefits consumers and retailers alike."
RILA has long supported comprehensive tax reform. While the House Republican Tax Reform Blueprint contains some important elements, 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.
The BAT would impose a 20 percent tax on all imported goods. Taxing imports would have a disproportionate impact on U.S. retailers, who by necessity import many of the items that they sell. A border adjustable tax will force higher prices on consumer staples such as food, medicine, clothing, electronics, and home improvement items.
To learn more about the BAT and Americans for Affordable Products visit www.KeepAmericaAffordable.com
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.