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The border tax is causing a stir in the retail industry, as politicians and executives clash on how to fix a “broken” system.
“Under the new border adjustment tax, American families — your constituents — would pay more so many multinational corporations can pay even less,” Target CEO Brian Cornell testified in a House of Representatives committee meeting on Tuesday.
Cornell called the US’s current tax code “broken.” However, he said the proposed border adjustment tax, which taxes imports 20% while exempting exports, would only hurt American retailers and shoppers. According to Cornell, the border adjustment tax would more than double the retailer’s tax rate to 75%, leaving Target unable to invest in hiring workers and opening new stores in the US.
“It’s simple math,” Cornell said. “If the government takes nearly four out of every five dollars we make… there’s no capital to invest and no prospects for growth. And that matters a…