WASHINGTON May 23 The chief executive officers
of two major American companies - retailer Target Corp
and agribusiness Archer Daniels Midland Co - will offer
countering views in a hearing before U.S. lawmakers on Tuesday
on a proposed border adjustment tax.
Target CEO Brian Cornell has been one of the most vocal
opponents of the Republican-backed border adjustment tax and
will testify alongside Juan Luciana, president and CEO of ADM,
which joined a coalition supporting the tax.
The border tax proposal, which imposes a tax on imports
while providing a credit for exports, has been proposed by House
Republicans as part of a larger tax code overhaul.
House Speaker Paul Ryan argues the proposed border tax,
which is estimated to garner $1 trillion, will not affect prices
and will allow rate cuts for businesses while not creating
deficits, but retailers warn that it could raise consumer prices
as much as 15 percent.
The outlook for passage of the border tax - which drew
staunch opposition from retailers - remains perilous, especially
as key Senate Republicans and President Donald Trump have
refused to endorse it.
Dimming the prospects more, lawmakers and lobbyists have
begun to speculate that Congress will be unable to rally support
for a sweeping tax code overhaul this year, and are beginning to
look instead at cutting tax rates without broad reform.
The House hearing on Tuesday, which was organized by
supporters, will seek to make a more vocal case for the tax.
Cornell is expected to be the only critic on the panel,
according to those who have organized against the tax.
The remaining three witnesses, including William Simon, the
former CEO of Wal-Mart Stores Inc, are expected to
testify in favor of the tax. Simon, despite his past with a
large retailer that opposes the tax, has stated publicly that he
Target officials have held more than 200 meetings with
congressional staffers and lawmakers, and Cornell has met with
30 lawmakers to try to persuade them to abandon the tax
proposal, Target spokeswoman Dustee Jenkins said.
(Reporting by Ginger Gibson; Editing by Kevin Drawbaugh and