Costco prices will rise with border tax, finance chief says
The House Republican plan to tax all imports into the U.S. will ultimately raise Costco Wholesale Corp.'s historically low prices, Chief Financial Officer Richard Galanti said Thursday.
The Issaquah-based company's finance chief addressed the proposed "border adjustment tax" while discussing second-quarter earnings with analysts.
We spent our whole lives driving down prices," Galanti said. "
For) so many items, it is not a question of let’s buy them here instead of outside of the U.S., they don’t exist here."
The destination-based tax would be assessed on income from goods and services based on where they are consumed, as opposed to where they are produced and sold. It would cut the corporate income tax to 20 percent from 35 percent, exclude export revenue from taxable income and impose the 20 percent tax on imports, according to Reuters.
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