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Retailers, Trade Groups Increase Fight Against Tax Proposal

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Posted at 6:46 PM, Feb 01, 2017
and last updated 2017-02-01 18:46:00-05

NEW YORK (AP) - More than 100 retailers are launching a new coalition aimed at fighting a Republican proposal on how imports get taxed.

The retailers -- which include Wal-Mart and Target -- believe the measure would hurt their businesses. They are joined by key trade associations, including the National Retail Federation and the National Grocers Association.

They want to convince consumers and lawmakers that the so-called Border Adjusted Tax plan would bring higher prices of as much as 20 percent on everyday items including clothing, food and gas.

Congressional Republicans want to eliminate tax incentives that encourage U.S. companies to move overseas, sharply cut the corporate tax rate to 20 percent from 35 percent, and encourage more factory output at home. But opponents say the plan would have a harmful rippling effect, causing companies to even lay off workers.