Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

I've been thinking about how Trump's Border Adjusted Corporate Tax will affect retailers relative to Amazon and eBay - and it's not pretty.

Most sellers on eBay are individuals rather than corporations so won't pay higher income taxes simply because they're selling imports.

Amazon sells high volume items they can buy with large quantity discounts, leaving other items to be sold by others on Amazon. A Border Adjustment Income Tax would simply modify Amazon's existing calculations as to what they will sell and what items they leave to others to sell.

Online / physical location retailers like Walmart, Best Buy or Home Depot are corporations so will be selling imports at a significant cost disadvantage to individuals selling these items on Amazon or eBay.

Anyone selling imports will have to be an individual, or setup an LLC owned by an individual so corporate taxes can be avoided.

If Home Depot set up an LLC, this income would still be consolidated into their corporate income with the Border Adjustment Income Tax, so there's no escape for them.