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President Trump speaks at GOP retreat in Philadelphia. (Pablo Martinez Monsivais/AP)

The Republican Party's planned border-adjusted tax is an elegant solution for supporting domestic exporting industries, but paying for it will require a huge tax hike on companies that import their wares.

Cowen Research published a report Thursday that estimates the effect of the reform plan, and other planned measures, like eliminating the deductibility of interest and a headline corporate tax cut, on different industries and companies. Here are some of the big-name firms Cowen says will be hurt by reform:

  1. Apple: The world's largest company would see its tax bill jump because it won't be able to deduct the expense of assembly abroad.
  2. Constellation Brands: The largest beer importer in America will not be able to expense the cost of goods it brings across the border, like its Corona brand.
  3. Gap: Between 50% and 80% of the retailer's cost of the goods its sells comes from abroad.
  4. Walmart: Walmart's low margins means that it may not be able to survive a tax hike on imported goods without raising prices.
  5. Target: Will suffer from the same conundrum as Walmart, but will be worse off since less of its revenue comes from domestically-sourced groceries.
  6. J.C. Penney: The department store has high debt loads, and interest on debt will not be deductible under the Republican plan.

Why it matters: These are just a few of the many companies whose earnings will come under assault by the GOP plan. Don't expect them to sit idly by.

Go deeper

Updated 3 hours ago - Politics & Policy

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Illustration: Eniola Odetunde/Axios

  1. Health: Most vulnerable Americans aren't getting enough vaccine information — Fauci says Trump administration's lack of facts on COVID "very likely" cost lives.
  2. Politics: Biden unveils "wartime" COVID strategyBiden's COVID-19 bubble.
  3. Vaccine: Florida requiring proof of residency to get vaccine — CDC extends interval between vaccine doses for exceptional cases.
  4. World: Hong Kong to put tens of thousands on lockdown as cases surge.
  5. Sports: 2021 Tokyo Olympics hang in the balance.
  6. 🎧 Podcast: Carbon Health's CEO on unsticking the vaccine bottleneck.

Trump impeachment trial to start week of Feb. 8, Schumer says

Senate Majority Leader Chuck Schumer. Photo: The Washington Post via Getty

The Senate will begin former President Trump's impeachment trial the week of Feb. 8, Majority Leader Chuck Schumer announced Friday on the Senate floor.

The state of play: Schumer announced the schedule after reaching an agreement with Republicans. The House will transmit the article of impeachment against the former president late Monday.

5 hours ago - Health

CDC extends interval between COVID vaccine doses for exceptional cases

Photo: Joseph Prezioso/AFP via Getty

Patients can space out the two doses of the coronavirus vaccine by up to six weeks if it’s "not feasible" to follow the shorter recommended window, according to updated guidance from the Centers for Disease and Control and Prevention.

Driving the news: With the prospect of vaccine shortages and a low likelihood that supply will expand before April, the latest changes could provide a path to vaccinate more Americans — a top priority for President Biden.