Target, other retailers boost lobbying in border-tax battle
THREE top US retailers almost quadrupled their combined spending on lobbying in Washington during the first quarter of 2017, as they work to defeat a corporate-tax proposal that some have said threatens their industry.
Target, Best Buy and Gap spent almost US$ 3.2 million ( RM14.4 million) combined on lobbying during the quarter – up from US$ 830,000 in the same period a year ago – according to federal lobbying disclosures filed Thursday.
The retail industry’s top issue since President Donald Trump took office in January has been to defeat the border- adjusted tax that’s central to House Speaker Paul Ryan’s plan to overhaul the tax code.
Trump himself hasn’t announced a position on the proposal, which would tax US companies’ domestic sales and imports at 20 per cent, while exempting their exports.
Chains such as Target and Wal-Mart Stores, which rely on imported goods, have led the way in denouncing the measure. Both Target, which spent almost US$ 1.3 million, and Gap, which spent US$ 660,000, said in their filings that they had lobbied on the tax proposal.
Best Buy, which spent more than US$ 1.2 million, cited lobbying on “comprehensive tax reform” generally.
Wal-Mart disclosed spending almost US$ 2.2 million in the first quarter, an increase of US$ 140,000 over the first quarter of 2016.
Among the concerns it listed was the “House tax reform blueprint,” a document released in June that includes the BAT.
Other concerns included prescription drug costs, the Dodd-Frank financial-regulatory law and the food-stamp program.
The opponents say the BAT would hurt their businesses while increasing prices for US consumers.
Supporters, which include General Electric, say the tax would create an incentive to make products in the US Because the border- adjustment provision is estimated to raise more than US$ 1 trillion over 10 years, supporters also say the BAT is key to paying for a cut in the corporate tax rate to 20 per cent from 35 per cent.
In addition to the increases for the four retailers, the National Retail Federation, one of the industry’s main advocacy arms, devoted US$ 2.3 million to lobbying during the quarter, a slight increase from the approximately US$ 2 million it spent the same period in 2016.
The Retail Industry Leaders Association, another major advocacy group involved in the tax reform battle, allocated US$ 680,000, up US$ 20,000 from 2016.
The lobbying figures are for all activities, rather than tax reform specifically, but it’s clear that the BAT is the retailers’ top lobbying objective, given past statements and the impacts they say it will have on their businesses.
“No other issue galvanised the industry like this one,” Brian Dodge, RILA’s senior executive vice president of public affairs, said earlier this month.
“Until the sponsors declare it dead, we will continue to fight against it.” — WP-Bloomberg