ARLINGTON, VA – Legislation to fund the federal government beyond December 20 came to a disappointing conclusion early this morning when the U.S. House of Representatives voted on a narrow set of tax provisions in the Omnibus Appropriations package and missed an important chance to fix a technical error in the Tax Cuts and Jobs Act, also known as “the retail glitch.” Andy Harig, vice president, tax, trade, sustainability & policy development for FMI expressed dissatisfaction that this oversight in the tax code has prevented retailers from implementing operational improvements inside their businesses and facilities, which Congress always intended for grocers to do in the tax reform legislation.
Harig said: “Since 2017, many qualified improvements to grocery stores and supermarkets have been put on hold due to a drafting error in the Tax Cuts and Jobs Act that make these investments more expensive than before tax reform. The drafting error actually increases costs and discourages companies from making these types of investments, which affects economic activity in communities and impacts customer experience. We have paid an extraordinary political price on this issue that impacts every business improvement plan across all congressional districts.”