If a border-adjusted tax is used to offset a reduction in corporate tax rates, American exporters and their employees would rank among the winners. Many small manufacturers without overseas factories have long favored an overhaul of the United States tax code that would increase corporate taxes on importers. The money raised from such a tax increase, they have argued, could then be used to offset a reduction in the overall corporate tax rate of 35 percent. Stores that operate primarily in the United States and cater to less price-sensitive shoppers could actually see their profits increase, according to some estimates. But Ulta may benefit more from the part of the House Republican proposal that would reduce the 35 percent corporate tax rate.

Source: New York Times January 27, 2017 01:43 UTC