Investopedia By Shoshanna Delventhal | May 23, 2017
The heads of major retailers Target Corp. (TGT) and Wal-Mart Stores Inc. (WMT), along with agribusiness leader Archer Daniels Midland Co. (ADM), argued over the merits of President Trump’s highly controversial proposed border tax adjustment plan before U.S. lawmakers on Tuesday.
The proposal includes slashing the corporate income tax rate from 35% to 20%, imposing a 20% tax on all imports and exempting export revenues from taxable income.
Paying More or Paying Less?
Target Chief Executive Officer (CEO) Brian Cornell remains staunchly opposed to the Republican-backed border adjustment tax, along with his retail executive peers. While the Trump administration says a destination-based tax system, which will increase tariffs on U.S. imports, will keep manufacturing at home and boost domestic jobs, retail companies say the mercantilist-style system would only hurt consumers by raising prices.
"Under the new border adjustment tax, American families—your constituents—would pay more so many multinational corporations can pay even less,” Cornell testified.
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