Indies Ask Congress to Fix Pass-Through Structure

The National Grocers Association (NGA), joined by 84 of its member companies and allied state trade associations across the United States, has sent a letter to the U.S. House of Representatives in support of comprehensive tax reform, but noting concerns about the treatment of pass-through entities in the Tax Cuts and Jobs Act. The letter encouraged Congress to enact reforms that achieve rate parity for supermarkets that operate as pass-through businesses.

About half of NGA’s member companies, many of them family-owned businesses, are taxed as pass-throughs.

“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 letter (see attached file) said. “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.”

Arlington, Va.-based NGA wrote that it and its members “are committed to continuing to work with Congress and the Administration to support tax reform that allows American companies to invest in their businesses, employees, and communities.”