02/17/2017
SanMar logo alphabroder logo
February 17, 2017
Dear colleagues and friends,
SanMar and alphabroder are coming together - something we don't normally do - to ask for your help in opposing what might be the greatest threat to our industry in a generation. We are hoping that this joint appeal will communicate the urgency and gravity of this issue.
Last year, as part of a broader effort to reform corporate tax laws, House Republicans published a tax proposal which incorporates a "border adjustability tax," which would impose a tax of 20% on all imports into the United States. Because our industry is so heavily dependent on imports and will be for the foreseeable future, the impact of border adjustability would be immediate, devastating and long-lasting.
While we do not want to take anything away from Made in USA products or the industries that produce goods in America, the manufacturing and labor base of the apparel industry, like many others, is largely absent from this country and has been for decades. It is simply impractical and unrealistic to assume that such a large, across-the-board punitive tax on imports will somehow bring garment factories and their workers back to the United States.
The reality is that this tax will disrupt global business, cause job losses at American companies relying on imports and lead to significant increases in prices on a wide variety of consumer goods, including the products your business relies on. For a typical reseller in our industry, more than 95% of their current apparel offerings would be subject to substantial price increases.
Details of the plan have not yet been released but it is clear that - absent significant changes or elimination of this proposal altogether - our industry will be asked to fund tax reform that will be enjoyed by other companies.
We need your help to communicate our shared concerns with your elected representatives in the House and Senate. Many of you have built your businesses from scratch and have unique stories to share. Your voices are powerful and we urge you to reach out to Congress to share your concerns. The fate of our industry relies on you.
Please email the House and Senate members who represent you. All you need to do is follow this link - http://www.congressweb.com/AAFA/30, type in your address and zip code and hit send. A letter will automatically be sent to Congress, and you will be given an opportunity to invite others to take similar action. We also encourage you to call your representatives and voice your concerns to them directly. To find your elected officials' contact information, follow this link - https://www.govtrack.us/congress/members.
A formal coalition recently launched to oppose this dangerous border adjustability tax. The name of the coalition is Americans for Affordable Products and the coalition's website - www.keepamericaaffordable.com - contains valuable information and resources. Should you wish to join the coalition or discuss ways in which you can best take action on the issue, please contact the coalition through its website.
Your urgent attention to this is necessary so we can effectively raise our concerns to ensure that tax reform is not done at our industry's expense.
Sincerely,
Jeremy Lott signature Norman Hullinger signature
Jeremy Lott
President, SanMar
Norman Hullinger
CEO, alphabroder
Congress is working on legislation that would dramatically change the way in which corporate income tax is assessed. Under the proposal, the cost of imports will no longer be deductible while export revenue will no longer be taxed. The net effect of this change is to dramatically increase the cost o...
