Chief executives from Target, JCPenney, Best Buy, Gap, Tractor Supply Co., Joanne Fabrics and AutoZone are heading to Capitol Hill on Wednesday to lobby against Congressional Republican’s plan for a “border adjustment tax.” The plan, which would put a higher tax on imported goods, could greatly affect these company’s businesses, as they typically import goods like clothes and electronics from Mexico. As a direct result, retailers would most likely be forced to increase sale prices, which could hurt profits.
In Washington, the CEOs will meet with Kevin Brady, House Ways & Means Chairman, as well as leaders from both houses of Congress. While the plan would increase taxes on imported goods, it would also decrease taxes for exported goods. This means that retailers, like automakers, who both import and export goods could potentially break even. However, retailers that only import goods could be negatively affected.