Last week I wrote an article entitled: "A Border Tax; Not Good for the Toy Industry." It was in reaction to a proposal to establish a 20% tax on imports. In that article I wrote: "In a sense, it would be children who would pay the price in toys that cost more and do less."
Fortunately some big retailers are concerned as well. A group of 120 retailers and trade associations, calling itself "Americans for Affordable Products" has come together to fight the tax. Here is what their website states as their mission: "The Americans for Affordable Products" is a coalition of job creators, entrepreneurs, and business leaders united against higher prices on everyday necessities." Are toys a necessity; they are if you're a child?
If you want to consider the impact of such a tax, think about Dollar Tree or 99¢ Only Stores. How can their business models sustain a 20% increase in taxes? Oddly, neither is on the list of supporters.
Congratulations to Learning Resources for taking a stand. It would be great to see more toy retailers do the same.
For the full list, click here.