Lowering the corporate tax rate on retailers could create more than 327,000 jobs in the first year, save consumers $10.2 billion, and increase salaries and wages by more than $10 billion, according to a new study by PricewaterhouseCoopers, commissioned by a retail trade group.
The report, commissioned by the Retail Industry Leaders Association, contends that while retail is America’s second-largest private employer, the retail industry pays the fourth-highest domestic effective tax rate at 36.4 percent, more than 10 percentage points above the average for all other industries. The report from RILA and PwC argues that revenue-neutral corporate tax reform that reduces the retail industry’s financial statement federal income tax rate to the current average for all industries, could have a substantial and immediate effect on retail’s contribution to the economy. “Tax savings could be used to add new jobs, increase wages, lower prices, or increase capital investment, or some combination of these,” said the report.
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