Retailers praise Congressional decision to not include Border Adjustment Tax in tax reform

The Trump Administration and Congressional leadership eliminated the possibility of imposing a Border Adjustment Tax (BAT) in its tax reform proposal, drawing praise from the Retail Industry Leaders Association (RILA).

“Today’s announcement is an important victory for American families and businesses who desperately need tax reform and who would have been harmed most by the border adjustment tax,” Sandy Kennedy, president of RILA, said. “With BAT out, Washington has an opportunity for the first time in more than a generation to pass a tax reform plan that boosts American businesses and family budgets.”

Representatives from RILA, including several of its member company CEOs, met with President Trump and other administration officials in February to discuss the negative consequences of the BAT for retailers if it remained a component of tax reform.

Since that meeting, RILA has met with Vice President Mike Pence, Treasury Secretary Steve Mnuchin, and nearly 300 members of the House and Senate to discuss the importance of passing tax reform without a BAT.

“As the nation’s largest private-sector employer, retailers are ready to work with lawmakers to pass tax reform that lowers corporate rates, scrutinizes deductions, keeps America competitive globally, and creates a level playing field here at home,” Kennedy said. “There is no better time and no greater need for tax reform to keep America competitive with the rest of the world. We look forward to working with Congress and the Administration to pass a reform package after the August recess.”