NGA urges Senate to pass comprehensive tax reform to create a more level playing field for supermarkets operating as pass-through businesses

ARLINGTON, Va., 2017-Nov-29 — /EPR Retail News/ — The National Grocers Association (NGA), the trade association representing the independent supermarket industry, and 152 state trade associations and food retailers today urged the U.S. Senate to pass comprehensive tax reform that creates a more level playing field for supermarkets operating as pass-through businesses.

In a letter to Senators, the grocers expressed support for the Tax Cuts and Jobs Act, but contend that the bill falls short of achieving rate parity between C-corporations and pass-through entities, which make up nearly half of NGA’s member companies. The proposed effective tax rate on qualifying pass-through businesses would be approximately 32 percent, or 12 percent above that of C-corporations.

“America’s pass-through independent supermarkets are a large and vital part of the economy and the new lower business tax rate needs to reflect their importance by being broadly applied and effectively enforced,” the group wrote to senators. “We urge Congress to support reforms that create a more level playing field for Main Street supermarkets so they can grow their businesses and create local jobs.”

In September, House and Senate leaders released a Unified Framework that pledged to treat pass-through businesses fairly in relation to their corporate competitors and called for a rate differential of five percentage points. The Senate bill ignores this promise and sunsets the pass-through deduction in seven years.

“Independent supermarkets are driving innovation in the marketplace. From implementing e-commerce strategies to developing new formats that enhance the customer experience, independent grocers are truly leading the way. We know tax reform can help these entrepreneurs to continue to invest in their communities, employees, and communities. We look forward to working with you and your colleagues to grow this important sector of the economy,” the letter concludes.


Tel: (703) 516-0700
Fax: (703) 516-0115

Source: NGA

RILA EVP for Government Affairs Jennifer Safavian comments on retail community’s support for comprehensive tax reform

Arlington , VA, 2017-May-19 — /EPR Retail News/ — Jennifer Safavian, RILA Executive Vice President for Government Affairs, issued the following statement regarding the retail community’s support for comprehensive tax reform following today’s House Ways and Means Committee hearing “How Tax Reform Will Grow Our Economy and Create Jobs.”

“Retailers have a significant impact on the daily lives of all Americans – from their customers to their employees to the communities and families they serve every day. While retailers are responsible for more American jobs than any other industry, we also pay among the highest effective tax rates of all U.S. businesses. Pro-growth tax reform that simplifies and lowers rates, eliminates special preferences and restores America’s global competitiveness is the top priority for retailers—provided it does not saddle American families with a higher tax bill.”

Retail Works for our American Economy

More than 42 million jobs in the U.S. are either a retail job or a job that relies on retail. Jobs in the retail industry span from designers and IT professionals to transportation and logistics service providers to customer service representatives. Outside of brick and mortar stores, millions of jobs in manufacturing, finance, insurance, real estate, transportation, warehousing, and services industries are supported by retailers. Millions of Americans get their first job in retail, including Members of Congress and their staff.

Retailers offer flexible schedules that enable individuals to spend more time with their families or complete a degree, and provide employees with extensive training at all job levels and skill sets that lay a core foundation for fundamental career development. Millions of high-tech and high-paying jobs are created by retailers as consumer demand and industry innovation continually advance and change.

RILA provided the Committee a statement for the record during today’s hearing. To read the full statement click here.

RILA is the trade association of the worlds 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.


Jason Brewer
Senior Vice President, Communications and State Affairs
Phone: 703-600-2044

Source: RILA

Retailers Agree Proposed Comprehensive Tax Reform Could Help Economy Grow

WASHINGTON, 2017-Apr-29 — /EPR Retail News/ — The National Retail Federation today (April 26, 2017) welcomed the proposal on comprehensive tax reform released by President Trump.

“Retailers commend the president for his leadership on much-needed comprehensive tax reform,” NRF President and CEO Matthew Shay said. “What matters most is that we enact pro-growth tax policy for both individuals and businesses. This puts money back in the pockets of hard working Americans, helping to grow businesses and industries in the communities where consumers live and work.”

“The United States has one of the highest corporate tax rates in the world, and retailers pay the highest effective tax rate of any industry,” Shay said. “Lowering the rate for businesses would significantly improve U.S. companies’ ability to compete in a global marketplace and will drive more investment to the United States.”

“The devil is in the details, but we are optimistic that when tax reform crosses the finish line it won’t include a border adjustment tax or any other scheme that shifts the financial burden to consumers,” Shay said. “Taxing imports would not only raise prices for consumers, it would ultimately cost American jobs and shutter American businesses. We look forward to continued conversations with the administration and Congress to make pro-growth tax reform a reality.”

NRF has led the retail industry in supporting comprehensive tax reform that would broaden the tax base and lower the corporate tax rate. Retail benefits from few of the tax breaks that lower tax bills for other industries, and pays the highest effective corporate tax rate of any sector of the U.S. economy – at or close to the maximum 35 percent.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy.

Robin Roberts
(855) NRF-Press

Source: NRF