Biden’s Corporate Tax Rate Increase a Nonstarter for Retail

Hana Greenberg, vice president of tax at the Retail Industry Leaders Association issued the following statement in response to the release of the President’s Fiscal Year 2023 Budget:

“Leading retailers are extremely disappointed to see a tax plan from the President that revives earlier failed plans to raise the corporate tax rate to 28%. Politically, raising the rate does not have majority support in Congress. Practically, this tax increase would disproportionally punish retailers who already pay their full freight in corporate taxes.”  

“If the President is serious about advancing his domestic policy priorities, he should revisit the text from his State of the Union and focus on highly profitable companies that presently pay little to nothing in federal corporate taxes. A domestic minimum tax on highly profitable companies is widely supported by voters in both political parties and should be included in any proposal that makes it to the President’s desk. Retailers support a domestic minimum tax, but we oppose any effort to raise the corporate rate.

“Addressing the uneven burdens in the current tax code, combined with reducing the tax gap by collecting taxes already owed is enough to reduce the deficit and fund significant investments in the President’s domestic agenda. As the President’s own October Build Back Better Framework makes clear – there is no need to raise the corporate rate and force companies who are already paying their fair share to pay more. This tax proposal is a non-starter for retailers.”   

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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

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.
 

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• Public Policy
• Finance
• Supporting Free Markets and Fostering Innovation
• Tax