Jewelers of America Political Action Committee (JAPAC) paid a visit to Washington, D.C. with a group of jewelers. It was the third time that JAPAC has led a delegation of retailers to the Capitol to express their views on prime legislative issues that affect the industry.
Talks focused on sales tax fairness. In May, the Senate passed the Marketplace Fairness Act designed to close the Internet sales tax loophole that damages traditional jewelry firms. This legislation is now being considered by the House of Representatives, where it faces tougher opposition than in the Senate.
"The margins on diamonds have narrowed, and the difference between in-store sales tax and online tax-free prices can keep me from closing a lot of sales,” explained Bill Farmer of Farmer’s Jewelers in Lexington, KY in support of the Act. “It's bad business for independent jewelers like me to have to compete for customers' sales due to an unfair tax advantage."
"This is a critical time for jewelry businesses, with legislators seriously considering the passage of the Marketplace Fairness Act, the ongoing threat of LIFO repeal and the possibility of major tax reform in the near-term," said JA president & CEO David J. Bonaparte. "The Capitol Hill fly-in was a great opportunity to get these issues – and especially jewelers' views on them – in front of key decision-makers in D.C."
