Tags: Donald Trump | Trump | retail | CEOs | tax reform

Trump to Meet With Retail CEOs to Discuss Tax Reform

Image: Trump to Meet With Retail CEOs to Discuss Tax Reform

(AP)

Tuesday, 14 Feb 2017 08:25 PM

President Donald Trump is scheduled to meet with a group of retailers on Wednesday to discuss the border-adjustment tax, a controversial proposal that has divided corporate America.

The retailers will meet with members of Congress as well as the president, according to David French, head of government relations for the National Retail Federation. They plan to argue that the tax measure, which has been promoted by House Republicans, will raise prices for U.S. consumers, he said.

“Retailers are on the front lines of the consumer-driven U.S. economy,” French said in a statement. “It is extremely important that they engage with elected officials on policies of this magnitude and that their voices be heard and acknowledged.”

The gathering is expected to include the chief executive officers of AutoZone Inc., Best Buy Co., Gap Inc., J.C. Penney Co., Jo-Ann Stores, Target Corp., Tractor Supply Co. and Walgreens Boots Alliance Inc., according to a person familiar with the event, who asked not to be identified because the details haven’t been released publicly.

Importers’ Burden

The issue has pitted corporate giants against one another, with retailers and other net importers on one side and exporters on the other. And there are billions of dollars at stake: The proposed overhaul of the corporate tax code, supported by House Speaker Paul Ryan, would reward companies that sell products outside the U.S. while punishing ones that rely on low-cost overseas suppliers.

The idea is to put a levy on U.S. businesses’ domestic sales and imported goods, while exempting exports from their taxable income. The tax would be assessed at a 20 percent rate and would replace the current 35 percent corporate income tax.

The retail summit comes a week after Trump assailed Nordstrom Inc. for dropping daughter Ivanka’s brand. The department-store chain, which blamed poor sales for the move, treated the first daughter “so unfairly,” the president said in a tweet.

Trump had an earlier feud with Macy’s Inc., which previously sold his brand of menswear. That company split with him in 2015 after he criticized Mexican immigrants at the outset of his presidential campaign. Trump called Macy’s a “very disloyal company” and urged a boycott.

Neither department-store chain is currently included as part of Wednesday’s gathering, according to a person familiar with the situation.

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President Donald Trump is scheduled to meet with a group of retailers on Wednesday to discuss the border-adjustment tax, a controversial proposal that has divided corporate America.The retailers will meet with members of Congress as well as the president, according to David...
Trump, retail, CEOs, tax reform
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2017-25-14
Tuesday, 14 Feb 2017 08:25 PM
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