ARLINGTON, VA – Food Marketing Institute (FMI) Senior Director, Sustainability, Tax and Trade, Andrew Harig, offered the following response on the “Big Six” tax reform framework released today and its proposed reductions to corporate and pass-through-business tax rates:
“FMI and its members are committed to working with Congress and the administration to craft tax reform legislation that works for food wholesalers and retailers, as well as American consumers. We are extremely encouraged by the hard work the negotiators have put into the framework released today and view it as an essential first step toward addressing the inequities and distortions in the current tax code.
“We’re grateful the negotiators are proposing not only a significant drop in the corporate tax rate, but also in the rate paid by pass-through businesses, which is an important step toward creating a level playing field in the marketplace. These lower rates will help accomplish the broader goals – shared by the negotiators, President Trump and the food retail industry – of creating jobs and driving economic growth in the sector, while also helping to guarantee that Americans continue to have the safest, healthiest and most affordable food supply in the world.
“The food wholesale and retail industry is highly taxed and FMI’s members – who average a one-percent annual profit margin – stand to benefit greatly from tax reform. We urge Congress to move expeditiously to create significant, lasting reform that focuses on lowering effective rates, creating tax parity among all industries, and simplifying the complexity that hinders job growth.”