Retailers, trade groups plan to fight tax proposal
Measure would lead to higher prices
NEW YORK - More than 100 retailers including Menomonee Falls-based Kohl’s Department Stores Inc. and Milwaukeebased Bon-Ton Stores Inc. as well as key trade associations are launching a new coalition aimed at fighting a Republican proposal on how imports get taxed, a measure they believe would harm their businesses.
The National Retail Federation, the American International Automobile Dealers Association, the National Grocers Association and others are joining forces to form Americans for Affordable Products, which will run a campaign to educate consumers and show lawmakers that the so-called Border Adjusted Tax plan would lead to higher prices of as much as 20% on everyday items including clothing, food and gas. The group, which also includes such companies as Nike, Best Buy, luxury conglomerate LVMH and Dollar General, is trying to make their opposition heard even while Congress and the president try to sort out exactly what adjustments to put forth.
Congressional Republicans want to eliminate tax incentives that encourage U.S. companies to move overseas, sharply cut the corporate tax rate to 20% from 35% and encourage more factory output at home. But opponents say the plan would have a harmful rippling effect, causing companies to lay off workers. The proposal — spearheaded by House GOP Speaker Paul Ryan of Wisconsin and Texas Rep. Kevin Brady, the top Republican on the House tax-writing committee — would constitute the most sweeping reforms to corporate taxes in at least three decades.
Trump has dismissed the cornerstone of the House GOP plan as “too complicated” and has touted a 35% levy on imports.
Nearly all such items that U.S. shoppers buy are either wholly or partly produced overseas as companies have sought the cheapest way to make goods.