Retailers Risk Mutlibillion Dollar Earnings Hit Under GOP Tax Plan

[Charlie Brown]

By Susan Pulliam,
Sarah Nassauer and
Richard Rubin
Updated Jan. 6, 2017 8:54 a.m. ET
63 COMMENTS

A Republican proposal aimed at cutting tax rates and keeping jobs in the U.S. risks whacking the earnings of big U.S. retailers by driving up the cost of imported clothes, furniture and other goods.

Among the companies whose earnings are calculated to take a hit under the so-called border-adjusted tax proposal are Wal-Mart Stores Inc., Costco Wholesale Corp., Genuine Parts Co. and Dick’s Sporting Goods Inc., analysts said.

The earnings hit to six big retailers could total nearly $13 billion, according to RBC Capital Markets analyst Scot Ciccarelli, with Best Buy Co.’s annual earnings wiped out. To offset their higher tax bills, retailers would need to increase revenue by raising prices for consumers, he said.

http://www.wsj.com/articles/retailers-risk-multibillion-dollar-earnings-hit-under-gop-tax-plan-1483698602

[Wellstone ruled]

1. Another Story of the sorry

incompetence of the incoming Regime . What a sorry excuse for Representative Democracy.

[tblue37]

2. But because Republican governors and legislatures block minimum wage

hikes, the people who buy at those places won't be able to afford the higher prices.