Republicans on Thursday said they have given up on trying to pass a border adjustment tax, prompting a rallying cheer across the retail sector.
Prior to Thursday's announcement, retailers that get many of the goods they sell from overseas had been raising concerns about the proposal, known as BAT, claiming it would pass hefty costs on to consumers.
Just last week, it looked like retailers' fight against BAT was heating back up, with the National Retail Federation sending a letter to Congress, titled, "Congress Should Focus on Income Tax Reform, Not BAT."
The border tax, originally devised and backed by House Speaker Paul Ryan, had since divided Republicans in Congress, and some of America's biggest retailers were looking to tear it apart. The proposal would have hiked prices of imported goods to the United States.
"Today's update on the status of tax reform is very encouraging, particularly since the border adjustment tax is no longer under consideration," NRF President Matthew Shay said Thursday in a statement.
"By removing this costly element of reform, the way has been cleared for swift action on a middle-class tax cut that will put more money in the wallets of the American taxpayer. Changing our outdated tax code is fundamental if we are to grow our economy, encourage investment and create jobs."