Retailers could take big hit under GOP tax plan
January 6, 2017
A proposal by Republicans aimed at cutting tax rates and keep jobs in the U.S. could wind up increasing the cost of imported goods sold by retailers. RBC Capital Markets analyst Scot Ciccarelli estimates that retailers, including Best Buy, Costco, Dick’s Sporting Goods, Genuine Auto Parts and Walmart, could take a nearly $13 billion earnings hit if the law is enacted. Consumer apparel prices could jump as much as 15 percent under the plan, according to Brian McGough, an analyst at Hedgeye Risk Management.
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