Retail chiefs heading to Capitol Hill for border tax fight

Andrew Cummings
February 17, 2017

Eight executives from major US firms met with President Trump in a closed-door session to discuss their concerns over the Republican's tax overhaul, which would mean millions of dollars in additional taxes for companies that import product. Sens. Tom CottonTom CottonKoch-backed group stepping up advocacy against border tax GOP senator: "Serious concerns" about House border tax plan GOP senators to Trump: We support "maintaining and expanding" Gitmo MORE (R-Ark.) and David Perdue (R-Ga.) both gave speeches on the Senate floor on Wednesday raising concerns about the proposal.

So far, Trump has a shown a remarkable deference to businesses concerned that policy changes will raise the cost of doing business. Conservative commentator Larry Kudlow, who is known to have contributed to the drafting of Trump's tax plan, said that once the border tax is imposed, it would be crossing the Rubicon.

"Tar-zhay, right?" the president said with a smile.

House GOP leaders are vigorously standing by the proposal and argue that it would end a disadvantage that American-made products have over foreign goods. He said it has strangled growth and made it harder to do business.

That would help lessen the price increase on imported goods while still allowing for some of the benefits to domestic companies and the trade balance. This is how our competitors beat the heck out of our workers and businesses. However it would impose a new tax on all imports - which we oppose. CEO Marvin Ellison and Target Corp. The "America first" theme of his inaugural speech bolstered that goal. For its part, Wal-Mart has come together with Target, Saks and other retailers to form the Americans for Affordable Products group to fight the tax adjustment. By incentivising exports and deterring imports, the proposed "Border Adjustment Tax" (BAT) is meant to increase domestic production, strengthen the USA economy and create new jobs, and deter corporate inversions and erosion of the US tax base.

A Republican plan to tax imports as a part of a strategy for generating new manufacturing jobs in the United States received a blow Wednesday when a new study suggested the levies would not help US companies sell more products overseas.

Congressional Republicans have included border adjustment in their tax plan as a way to generate more than $1 trillion in revenue for the federal government.

But in recent statements Trump has indicated some reservations about the tax.

In his remarks to the retailers, Trump said he's "cutting regulations big league", and explained his regulatory reduction method called "one and one". He also pledged to lower corporate tax rates substantially and to remove regulations that cost jobs. "Including personal and business".

Ryan, referring to the border-adjusted tax during a press conference earlier Thursday, said, "I would say to those who are concerned about this, I think they under-appreciate how much better our tax system will be with this kind of provision".

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