While President Donald Trump continues to tweet out that he is going to cut taxes
what is really going down is a shift in the method of taxation. There will be no net tax cut.CEO's most optimistic since 2009. It will only get better as we continue to slash unnecessary regulations and when we begin our big tax cut!— Donald J. Trump (@realDonaldTrump) March 15, 2017
A border tax for all incoming goods is one possibility of a new tax angle. It is a favorite tax shell game maneuver of House Speaker Paul Ryan. Such a tax would do great damage to the retail sector.
Retail analysts believe it could hurt some retailer earnings by as much as 50% to 100%.
Politico reports that the country's biggest retailers remain focused in a big way on derailing the proposed tax. An attack team is headed to D.C. Members of the Retail Industry Leaders Association are flying in this week for meetings on the Hill, with a focus on Senate Republicans.
They'll include executives from 7-Eleven, Best Buy, DSW, Lowe's, Meijer, Rite Aid, Target and Wal-Mart. Read this list carefully. If you shop at any of these outlets, you will be impacted by a border adjustment tax. It would result in either higher prices or some goods no longer being available.
Almost all major retailers import a significant amount of the goods they sell. In January I reported in the EPJ Daily Alert that even Whole Foods imports 20% of the goods that it sells.
About 40 members of the National Retail Federation will also be on the Hill today lobbying against the tax.