By Brian Dodge, Senior EVP of Public Affairs, Retail Industry Leaders Association (RILA)
If passed, the border adjustment tax will harm retailers and consumers.
The American tax code is a mess. It is complex, inefficient, and most importantly, it picks winners and losers. For example, the retail industry, which supports more American jobs than any other industry, pays among the highest domestic effective tax rates of all industries, at more than 36 percent. While some industries benefit from special treatment that lowers their tax burden, retailers enjoy few, if any, such deductions. For this reason, retailers have always believed that comprehensive tax reform is good for business and even better for American consumers. For years, the retail industry has urged Congress and the White House to work together to find a solution that updates our current outdated and inefficient tax code. Unfortunately, now as Congress finally begins to move tax reform forward, it does so with a proposal that would accentuate the inequity in the tax code and put an enormous new burden on retailers and their customers.