Before getting into the tax reform discussion, House Speaker Paul Ryan is standing in the way, pushing for a border tax.
If Ryan's border tax push goes the way his health-care push went, then the former will fail as well, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
The idea that a border tax will fail to gain traction isn't limited to just Cramer either. He pointed out that shares of Dollar Tree (DLTR) - Get Report , Kohl's (KSS) - Get Report , Foot Locker (FL) - Get Report , Nordstrom (JWN) - Get Report , Gap (GPS) - Get Report and others are on the rise based on similar expectations.
A majority of the products sold by these stores would be subject to a border tax, Cramer noted. That would negatively impact these companies and their bottom line. But without the tax, they have a better outlook, thus the stock rally.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.