Retailers pay among the highest effective tax rates of any industry. Because of their operating model and footprint, most brick-and-mortar retailers cannot benefit from the deductions and credits available to other industries. Every point the corporate rate goes up negatively impacts their ability to compete and to invest in employees, innovation, and communities.
Retailers’ commitment to well-rounded economic competitiveness for their employees, communities, and customers has guided RILA to advocate successfully for a competitive and fair tax code. In 2021, we successfully advocated for Congress and the Biden-Harris administration to keep the corporate rate at 21 percent, the enactment of a minimum tax to ensure all profitable companies are contributing their fair share and supported flexible and broad energy tax incentives to accelerate retail investments. In 2017, under the Trump administration, RILA beat back a devastating Border Adjustment Tax – to have it replaced with a lower competitive corporate rate.
RILA will continue to defend these successes while continuing to innovate in ways that allows retailers to invest even more in their communities.
From supporting, expanding, and simplifying workforce credits, to investing in the care economy and the green energy transition – RILA continues to advocate for tax policies that help support retail workers, communities, and shoppers.
Retail Works for All of Us
Supporting Free Markets and Fostering Innovation