Retailers have created a new group meant to oppose House Republicans’ plans to adjust taxes at the border, a reform that could raise taxes on retailers’ imports and is proving to be an early obstacle in the GOP effort to overhaul the tax code.

Led by major corporations such as Walmart, Walgreens and Nike, a group of more than 120 businesses and trade groups announced Wednesday the creation of a national campaign against the border adjustment, called Americans for Affordable Products.

The new organization, complete with website and social media presence, represents increasingly entrenched opposition to the Republican tax plan from retailers that could see their taxes rise in the reform proposal. Other industries that would benefit from the reform have yet to reach that level of organization.

House Republicans have proposed taxing imports as part of a broader corporate rate-cutting reform that would tax goods based on where they are sold. In the plan, companies no longer would be allowed to deduct the cost of imported goods and services but would no longer pay any taxes on revenue from exports. In the current system, U.S. companies are taxed on all profits, whether they are earned in the U.S. or abroad. Republicans say the change would encourage more manufacturing within the U.S. and discourage companies from moving production overseas.

While retailers would strongly favor lower tax rates, they are concerned about that aspect of the overall tax package. In a statement, Retail Industry Leaders Association Sandy Kennedy said that “the border adjustable tax is harmful, untested and would put American retail jobs at risk and force consumers to pay as much as 20 percent more for family essentials.”

Advocates of the tax plan assert that the dollar would strengthen in response to the border adjustment. So while they would be paying more tax in taxes on imported goods, those dollars would have proportionately greater purchasing power.

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Collins called the decision “very difficult.”

02/01/17 2:01 PM

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