Retailers unite to stop border adjustable tax

Retailers, trade organizations and business leaders are teaming up and taking steps to stop the border adjustable tax proposal.



The Retail Industry Leaders Association (RILA) joined more than 120 other trade associations and businesses to launch “Americans for Affordable Products,” a national campaign aimed at ending the border adjustable tax. The tariff, which is a component of the tax reform proposal under consideration in the U.S. House of Representatives, would impose a 20% tax on all imported goods.



The campaign 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, clothing, medicine, electronics, and home improvement items. Taxing imports would also have a disproportionate impact on U.S. retailers, who by necessity import many of the items that they sell, RILA said.



“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% more for family essentials,” Kennedy said. “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 does contain 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, RILA added.