🛒 ThredUp and Vestiaire Lead Petition
ThredUp, Vestiaire Collective, and others have backed a new petition to end taxation on secondhand apparel. Led by American Circular Textiles, the initiative aims to promote a circular economy by eliminating what the group calls “double taxation.” Items are taxed once when first sold and again when resold. This policy, they argue, discourages sustainable shopping and hampers the growth of the secondhand market.
📈 The Secondhand Market’s Growth
The secondhand market is on the rise. ThredUp’s recent report found that U.S. consumers spent nearly 50% of their clothing budgets on secondhand items. The global market also grew by 18% last year, reaching a valuation of $197B. However, proponents of the petition believe that taxation on these items could slow down this growth.
♻️ Encouraging Sustainability
The petition highlights the environmental benefits of secondhand shopping. By reducing taxes, it aims to make sustainable options more affordable and attractive to consumers. This shift would likely reduce the fashion industry’s environmental impact by promoting reuse and repair over disposal. According to Rachel Kibbe, CEO of American Circular Textiles, ending double taxation could also support lower-income families by making clothing more affordable.
👥 A Broad Coalition of Support
Besides ThredUp and Vestiaire, the coalition includes companies like Fashionphile and Project Repat. Each organization sees ending this tax as a way to further the trend of shopping for well-made, durable items that can be reused or repaired. Kibbe emphasized that the move is not only fair but could also spur economic growth, making sustainability a more integral part of consumer behavior.
Do you think ending taxation on resale items could boost the circular economy?
