Economy
Border Tax Fight Divides American Industry
Published:
Last Updated:
The fight over a proposed border-adjusted tax that is under consideration in the U.S. House of Representatives is being rejoined, and the issue is cutting across American industries.
Chief executive officers, many of them from the retail sector, oppose the levy, a centerpiece of House Speaker Paul Ryan’s agenda, and are renewing a push to stop the tax, which would replace the existing corporate income tax with a 20% levy on U.S. companies’ domestic sales and imports and exclude exports.
The American Made Coalition, whose members include Archer Daniels Midland, Boeing and Caterpillar, believes the current tax system is outdated and needs to be transformed. The group backs competitive tax rates for small and large business, a modern territorial system and the border adjustment of businesses taxes, and it believes these changes are needed to leveling the playing field for American-made goods and services and to stimulate creation of American jobs, investment and manufacturing.
On the other side of the argument are companies that believe a border tax will hurt consumers. Several coalitions of companies have formed who oppose the tax, including Americans for Affordable Products and the Retail Industry Leaders Association. Among the companies opposed to the tax are Abercrombie & Fitch, Best Buy, BJ’s Wholesale, Macy’s and Lord & Taylor.
In Favor of the Border-Adjusted Tax
- Aerospace Industries Association
- Archer Daniels Midland
- Blue Diamond Growers
- Boeing
- Caterpillar
- Celanese
- Celgene
- Cook Medical
- CoorsTek
- Cummins Allison
- Dow Chemical
- Electroimpact
- Eli Lilly
- Equifax
- Fortive
- GE
- Honeywell
- Johnson & Johnson
- McIlhenny
- Merck
- MillerCoors
- Neutral Posture
- Oracle
- Pfizer
- Port Clinton Manufacturing
- Qualcomm
- Raytheon
- S&P Global
- United Technologies
- Varian Medical Systems
Opposed to the Border-Adjusted Tax
- Abercrombie & Fitch
- American Eagle Outfitters
- American Import Shippers Association (AISA)
- American International Automobile Dealers Association
- Ascena Retail Group
- Best Buy
- BJ’s Wholesale
- Big Lots
- Conservative Tea Party of Texas
- Costco Wholesale
- Crate & Barrel
- Dick’S Sporting Goods
- Dillard’s
- Gap
- Target
- Home Depot
- J. Crew
- J.C. Penney
- Kohl’s Department Stores
- Levi Strauss
- Lord & Taylor
- Macy’s
- Movado Group
- National Grocers Association
- National Retail Federation
- PetSmart
- Pier 1 Imports
- Saks Fifth Avenue
- Samsung
- Wal-Mart
- Nike
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
