Friday, July 28, 2017

Companies Urged to Contact Congress In Support of LIFO

The LIFO Coalition has learned of the following developments in the past week:

  • The Senate Finance Committee has begun writing their version of a tax reform bill
  • LIFO repeal is part of the tax reform discussion

Tax writers are actively looking for sources of revenue to pay for reduced tax rates and other reform proposals like expensing. The House “Blueprint” included a Border Adjustment Tax, or BAT, that would raise more than $2 trillion. That proposal proved to be very controversial and most tax observers believe it will not be included in a final tax reform proposal. Without the BAT, other revenue sources have to be found, and that search for other revenue puts LIFO in peril.

In short, LIFO is at greater risk today than it has been for years.

It is extremely important for LIFO tax-paying businesses & CPA firms to voice their support for LIFO to their respective members of Congress, and (if possible) explain to them how LIFO repeal would negatively impact their business (and/or clients). The citizens employed & communities supported by LIFO-taxpaying businesses are extremely influential in the tax reform policies made by their congressional representatives, and company outreach has historically been proven to be the most effective means of preserving LIFO.

How to Take Action

Contact Congress Online Tool

This tool automatically identifies the appropriate House Representatives and Senators to send your message to based on the zip code entered (free tool provided by the LIFO Coalition). Send a message in support of LIFO to your members of Congress online by clicking the Contact Congress button below:

Contact Congress Online Tool

Send A Message to Congress

Providing specific details of the negative economic impacts of LIFO repeal that your company would suffer from is HIGHLY EFFECTIVE! Suggested talking points include:
  • Reduction in profit margin and/or after-tax operating income
  • Reduction in workforce and/or new hires
  • Halt and/or slow company growth
  • Restrict reinvestment in capital assets
  • Restrict cash flow for replenishing inventories
Those who wish to send a message to congress in support of LIFO should include the following:
  • Full Name
  • Company Name
  • Company location
  • Clearly state that your business is located in the congressmen’s constituency

Who to Contact

Companies should contact the following members of Congress:

1) House & Senate members that represent the state that your company is headquartered in
2) Republican Senate Finance Committee Members that represent a state that your company operates within

Contact Congress Resources

Representative/Senator Contact Information Lookup
Facts & Figures Favoring the Preservation of LIFO
Pro-LIFO Message Template
LIFO Coalition Fact Sheet
LIFO Witness Testimonies During 03/18/1938 Senate Finance Committee Hearings on Revenue Act of 1938 (H.R. 9682)
Floor Debate Regarding the Acceptability of the LIFO Method During 04/08/1938 Senate Finance Committee Hearings on Revenue Act of 1938 (H.R. 9682)
Floor Debate Regarding the Acceptability of the LIFO Method During 05/09/1938 Senate Finance Committee Hearings on Revenue Act of 1938 (H.R. 9682)
Floor Debate Regarding Allowing the Use of the LIFO Method to All Industries During 06/21/1939 Senate Finance Committee Hearings
1938 IRC Sec. 22(d) Provision Added Allowing Certain Industries to Use LIFO for the First Time
IRC Sec. 22(d) Amendment Made to Extend the Use of LIFO to All Industries For The First Time

LIFO Coalition’s Contact Congress Page:

Categories: LIFO Repeal