The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
JA Joins Retailers Lobbying Against Import Tax
The proposed “Border Adjustment Tax” imposes a 20 percent tax on goods imported from overseas, be they raw or finished.
Washington, D.C.--Jewelers of America is joining the growing list of retailers and retail groups speaking out against the so-called Border Adjustment Tax, which would slap a 20 percent tax on goods imported from overseas.
Though not formally introduced in Congress yet, the Border Adjustment Tax, or BAT, is part of a comprehensive tax reform proposal drawn up by House Republicans.
Called the Tax Reform Task Force Blueprint, the plan would shift the emphasis on taxation in the United States from income to consumption, lowering taxes on individuals and corporations while increasing it on consumer goods.
BAT calls for a 20 percent tax on finished and raw goods and materials brought into the United States from abroad, from French wine to German cars, from Italian gold to Burmese rubies.
Proponents of BAT, including House Speaker Paul Ryan (R-Wis.), say it will raise $1.2 trillion dollars over 10 years and that its cost to retailers will be offset by a stronger dollar and corporate and individual tax cuts.
But individual retailers and retail groups, including Jewelers of America, are coming out against BAT because, they argue, it will increase the cost of products from overseas for retailers and, ultimately, consumers.
Tim Haake, managing director of Washington, D.C.-based Haake Fetzer, which works for the jewelry industry on behalf of Jewelers of America in Washington, said one tenet of House Republicans’ Blueprint is that it be revenue neutral, meaning that it must raise the same amount of revenue that is raised under the current tax system.
“That filled the hole that existed in the Tax Reform Blueprint plan. But the tax is going to fall on people who spend money for things,” Haake said.
BAT would be particularly detrimental to the jewelry industry, JA President and CEO David J. Bonaparte said, as it’s an industry that manufacturers the vast majority of goods overseas and is dependent upon consumers having extra disposable income.
Already working within tight margins, jewelers would have to pass along at least some of the 20 percent tax to their customers, customers who will have less money to spend on discretionary goods as they grapple with higher prices on essentials like clothing, food, cars and gas.
“My feeling is that jewelry would be adversely
Haake echoed that sentiment: “Jewelry is a totally discretionary expenditure.”
In addition to its lobbying efforts with Haake Fetzer, JA has joined Americans for Affordable Products, a group of businesses and trade associations that are lining up against BAT.
Others that have joined the group include the Fashion Jewelry and Accessories Trade Association, online retailer Gilt, Jewelry Television, LVMH, the National Retail Federation and Neiman Marcus.
JA also has updated its Legislative Action Center, where retailers and suppliers can go to contact their representatives in Congress to voice their opinion about BAT or other issues.
“We’ve already started to dig our heels in and actively fight this,” Bonaparte said.
Congressional Republicans have been working on serious tax reform proposals for about five years, but those proposals lay dormant until the election of a Republican president in Donald Trump and the party’s victories in both houses of Congress this past fall.
Chris Fetzer, Haake Fetzer’s managing director, said the House Financial Services Committee’s Monetary Policy and Trade Subcommittee is expected to hold a hearing on BAT in the coming weeks.
While the tax has support from some key House Republicans, including Ryan, House Majority Leader Kevin McCarthy (R-Calif.) and House Ways and Means Committee Chairman Kevin Brady (R-Texas), Haake said BAT faces a significant challenge from top Senate Republicans.
Finance Committee Chairman Orrin Hatch (R-Utah) has publicly raised questions about how the bill will impact both businesses and consumers.
And Senate Majority Whip John Cornyn (R-Texas) described BAT as being “on life support” as soon as last Friday, before Congress went on a week-long break.
The Latest
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Despite the rising prices, consumers continue to seek out the precious metal.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
The “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
The Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
The Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
It will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.