FMI Backs Tax Reform With Video
Food Marketing Institute (FMI) has released a video, featuring Senior Director, Tax, Trade and Sustainabiluty Andy Harig and Chief Public Policy Officer Jennifer Hatcher, that lays out the retail case for for tax reform.
“This is no doubt a huge opportunity for the industry,” notes Harig in the video as he and Hatcher stand in front of a promotional “Tax Cuts Now” RV. “We’ve been waiting over 30 years for this kind of comprehensive tax reform that Congress is talking about right now.”
Harig goes on to list the benefits to be gained by retailers: higher wages, the ability to hire more people, and economic growth.
Meanwhile, Arlington, Va.-based FMI was among the industry trade associations to express their approval of the release by the U.S. House of Representatives’ Ways and Means Committee of a long-awaited tax reform proposal.
“FMI firmly believes that broad-based tax reform that lowers effective rates, simplifies the tax code and creates a level playing field for all industries will unleash innovation and help the industry create good-paying jobs for its associates and an enhanced shopping experience for its customers,” noted FMI President and CEO Leslie G. Sarasin, who noted that most of the organization’s members report paying a 32 percent or higher effective federal tax rate, while food retailers in other countries often pay a much lower rate.
“We anxiously await the legislative markup of this text next week and hope the principles of low rates and fairness prevail so this truly becomes a once-in-a-generation legislation that gets our full support,” added Sarasin.
“This is a critical step forward towards enacting the first major overhaul of our tax system in 30 years," said Pamela G. Bailey, president and CEO of the Washington, D.C.-based Grocery Manufacturers Association. "Food, beverage and consumer products manufacturers have long supported necessary tax reforms to create good American jobs and help our economy thrive, and we applaud this progress. By creating a tax system that includes a lower internationally competitive tax rate and a territorial approach, Congress can help level the playing field for our nation’s manufacturing industry, strengthen the purchasing power of American consumers, and drive economic growth for American workers.”
Other retail industry organizations have also expressed their firm support for tax reform, with several hailing as a big step toward that goal the House’s recent passage of a 2018 budget that will allow the Senate to pass tax reform with a simple majority of 51 votes.