Today, the Retail Industry Leaders Association (RILA) issued the following statement in response to the Joint Committee on Taxation (JCT) report on the Ways and Means Committee Tax Reform Working Groups. The report includes a summary of suggestions for reform submitted to the eleven Tax Reform Working Groups, including comments from RILA. On April 8, RILA sent a letter to the House Ways and Means Tax Reform Working Group on Income and Tax Distribution urging the Committee to put all corporate tax preferences on the table in order to substantially reduce tax rates, ease burdens on consumers and allow businesses to create jobs. A copy of RILA’s letter can be found here.
“RILA strongly supports Chairman Camp and the Committee’s continued focus on the importance of achieving comprehensive tax reform. RILA believes that all corporate tax preferences need to be put on the table in order to give the Committee as much latitude as possible to reduce the corporate rate in a revenue-neutral fashion,” said Bill Hughes, senior vice president of government affairs. “We look forward to continuing to work with the committee with the goal of achieving comprehensive tax reform that eliminates preferences, substantially lowers rates and simplifies the tax code to put more money in consumers’ pockets and allow U.S. retailers to compete globally, invest, expand their businesses, and create new jobs.”
NOTE: The retail industry is the second largest private-sector employer in the U.S. and yet it incurs a domestic effective tax rate of 36.4%, the fourth highest among the18 major industries and more than 10 percentage points higher than the average for all other industries. Given the enormous employment footprint of the retail industry, comprehensive tax reform could stimulate job growth in the retail sector and the industries supported by retail. Read more in the PwC Study RILA commissioned in November, here.
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.