FMI Disappointed 2019 Spending Bill Lacks Correction of Retail Glitch

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.”

About FMI

As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org