Sen. Cotton Worried How Border Tax Would Affect Consumers
- Author: Zachary Reyes Feb 16, 2017,
Feb 16, 2017, 6:26
President Trump on Wednesday touted his forthcoming tax plan to retail executives who represent an industry with major concerns over a tax plan from House Republicans.
Major retailers have come out swinging against a provision of the tax proposal known as border adjustment, which effectively creates a new tax on imports.
"Given that retail is the largest private sector American employer, retailers support sound policies that spur economic growth and job creation", said Brian Dodge, senior executive vice president of public affairs at the Retail Industry Leaders Association, in a statement. Trump has begun discussing tax reform.
The independent Tax Foundation said in a long critique of the House Republican proposal to impose "destination taxes" that the plan would probably stop multinational companies from shifting profits overseas to escape corporate taxes and said the system would be generally fairer than the current method of corporate taxation.
In other words, US exports were performing slightly better as compared to imports at the end of a year ago, just before the Trump administration took office, before the new Congress enacted any laws on trade and before the new president signed any executive orders.
President Trump has made a priority of creating or keeping manufacturing jobs in the USA, but he has remained quiet about the widespread shedding of jobs by retailers like Macy's.
President Trump and House Republicans have been floating the idea of taxing vehicles and other goods that enter the nation's borders. Their input has more urgency as U.S. President Donald Trump is finalizing his own tax plan that he plans to unveil in the coming weeks.
Supporters of the border tax also set up the American Made Coalition.
CEOs from Target, Best Buy, Gap, AutoZone and others are heading to Capitol Hill this week to meet with members of Congress and their staffs, though it's not clear whether they'll also head to the White House.
"The retail industry pays among the highest effective tax rates of all industries".
"There is no real tax reform that keeps in place tax breaks for foreign products over local products, " Brady said on CNBC Wednesday.
A prime topic of conversation for retailers was pushing back against controversial plans to raise taxes on imports, according to people with knowledge of the meeting.