On behalf of the Food Marketing Institute’s (FMI) 1,000 food retail and wholesale member companies, FMI's Chief Public Policy Officer and Senior Vice President for Government Relation, Jenifer Hatcher, offered the following statement:
“Congress’ vote to pass H.R. 1 – the Tax Cuts and Jobs Act is a landmark step forward. Food wholesale and retail are low margin, high tax industries that have been waiting for just this type of relief to spur investment and create jobs. FMI and its members are anxious to see this legislation implemented as quickly as possible.
“The bill dramatically lowers the corporate tax rate and increases expensing levels, which should help fuel improvements in technology and job growth within our industry. It does so while also preserving industry priorities like Last-In, First-Out (LIFO accounting) and the Work Opportunity Tax Credit and does not impose a punitive Border Adjustment Tax (BAT).
“Consumers will also benefit from having more money in their pockets, thanks to a doubling of the standard deduction and lower tax rates.
“While we would have liked to see more progress in certain areas such as greater parity between the corporate and pass-through rate and full repeal of the estate tax, we’re grateful for a number of changes made during conference, such as allowing estates and trusts access to the reduced pass-through rate. No piece of legislation is perfect, but the tax reform conference report offers food retailers important economic relief.
“The bill that emerged from conference demonstrates how effective Congress can be when the legislative process is allowed to work. FMI would like to thank Speaker Ryan, Majority Leader McConnell, and Chairmen Brady and Hatch for their efforts in making tax reform a reality. We believe passage of this bill is setting the table for a strong and prosperous 2018."