It's no secret that retailers have long been advocates for tax reform. The industry is a significant economic driver in the US, supporting over 42 million jobs, yet the industry pays among the highest effective tax rates of all sectors, at 35 percent.
That's why, when Congress set its sights on tax reform earlier this year, retailers rejoiced. If you've been following the news, you know that over the last few weeks, both House and Senate leadership have introduced bills aimed at fixing our broken tax code. The House passed their bill last week and the Senate is expected to vote on their version of the plan in the coming weeks. After 31 years, it appears comprehensive tax reform that closes harmful loopholes, lowers rates, and puts money back in the pockets of consumers is finally within reach.
The industry is focused on getting comprehensive tax reform across the finish line, and as the association for the nation's largest retail brands, RILA is committed to doing our part to make sure reform reflects the needs of businesses and our customers.
Last week, we hosted a tele-town hall with one of the most important leaders in the debate, Treasury Secretary Steven Mnuchin. RILA member companies and partners from across the country, including state retail associations and small businesses, joined to learn more about the proposals and their impact on individuals and businesses.
Mnuchin explained how the Trump Administration views tax reform as critical to economic growth and is optimistic in the aggressive timeline laid out for passage by the House and Senate. In walking through the objectives behind the Administration's push for tax reform and details in the current proposals, Mnuchin was enthusiastic about the potential for job growth, increased investments from the business community, and more money in the pockets of consumers. The Secretary emphasized the role of retailers in the economy, namely as job creators, and thanked the industry for their support throughout the tax reform process.
Earlier in the week, RILA Senior Executive Vice President of Public Affairs Brian Dodge sat down with radio and TV stations across the country to discuss why enacting comprehensive tax reform now is so important for the retail industry and consumers.
A few of Dodge's interviews can be seen via the following links:
RILA will continue to stay engaged in the tax reform debate in the coming weeks and remain optimistic about passage before the new year. For more information, visit rila.org/tax.