Target CEO: Border adjustment tax would hurt my customers

A current retail CEO and a former one found themselves at odds on Tuesday at a Capitol Hill hearing on the proposed border adjustment tax.



“Under the new border adjustment tax, American families – your constituents – would pay more so many multinational corporations can pay even less,” said Target CEO Brian Cornell. “Eighty-five percent of Americans shop at Target every year. We believe this new tax would hit those families hard, raising prices on everyday essentials by up to 20%.”



Cornell's opposition to the tax is shared by many other retailers. But at the Tuesday hearing, the former CEO of Wal-Mart Stores, William Simon, endorsed the measure. He said the tax, if properly implemented, would offer significant benefits to the economy as a whole. Simon's former employer, Walmart, is against the tax.



The retail industry's two main associations, the National Retail Federation and the Retail Industry Leaders Associations, have been forceful in their opposition to the tax.



"The border adjustable tax would disproportionately impact the retail sector because we import many products that are not able to be sourced domestically," Jennifer Safavian. executive VP for government affairs, RILA, said in a statement Tuesday. "Such a drastic new tax would undermine the benefits of a corporate tax rate reduction, precluding the industry from realizing potential economic growth. A border adjustable tax will lead to higher prices for American families and put many retail businesses at risk.”