The Coalition for Fair Effective Tax Rates, co-chaired by the Retail Industry Leaders Association (RILA) and the National Federation for Independent Business (NFIB), launched today. The new, broad-based tax reform coalition recognizes there are glaring disparities in the effective tax rates different industries pay in the current code and believes tax reform should be viewed through the lens of effective tax rates, the amount in taxes that businesses actually pay.
“The government should no longer pick winners and losers among industry sectors in the tax code. The unequal treatment of businesses distorts the market and hinders economic and job growth,” said Bill Hughes, senior vice president of the Retail Industry Leaders Association and co-chair of the Coalition. “Viewing tax reform through the lens of effective tax rates will highlight the inequities in the current code for all kinds of businesses – both large and small – and illustrate the need for a simplified and fairer tax system.”
Collectively representing about 500,000 businesses, the Coaltion is a diverse organization whose members include a wide range of businesses from large corporations paying corporate rates, to small mom-and-pop shops paying individual tax rates. All agree with the tax-writing committee chairmen on Capitol Hill that the federal tax code is broken and comprehensive tax reform is needed to spur economic growth and create jobs.
The Coalition believes effective tax rates should be used as a leading metric – and a key measure of success – as tax reform develops on Capitol Hill. High effective tax rates have negative consequences for American businesses and the overall economy, and Coalition members believe viewing tax reform through the lens of effective tax rates will result in a more fair and equitable tax system across all industries.
The Coalition will take no position on any tax preference or provision. Instead, it plans to concentrate on the benefits of viewing tax reform through the lens of effective tax rates with the goal of creating a fair, neutral playing field across all industries and business sectors.
Late last year, RILA commissioned a PricewaterhouseCoopers study which highlights the glaring disparities in the effective tax rates industries pay and demonstrates the urgent need for tax reform. Read more about the study HERE .
The coalition’s management committee members are Associated Builders and Contractors, Associated General Contractors, International Foodservice Distributors Association, International Franchise Association, National Association of Wholesaler-Distributors, National Federation of Independent Business, Retail Industry Leaders Association, S Corporation Association and Small Business & Entrepreneurship Council.
Visit the coalition’s website.
Follow the coalition on Twitter: @effectiverate