Wednesday, August 2, 2017

Senate Finance Committee Drafting Tax Reform Bill

According to sources at the LIFO Coalition, Congress and the White House has begun working on a tax reform bill. Although the House tax reform Blueprint specifically called for LIFO to be preserved, the senate has moved forward with drafting their own version of a tax reform plan.

Sources have also stated that LIFO repeal is part of the tax reform discussion after Congress announced that the Border Adjustment Tax (BAT) will be struck out of their tax reform plan. The BAT was expected to raise more than $2 trillion in revenue, and Congress is actively looking for sources of revenue to pay for reduced tax rates in the absence of the BAT. What is known is that other revenue sources have to be found, and that search for other revenue puts LIFO in peril.

LIFO-PRO has also recently learned that four Senate Finance Committee members that are actively involved in drafting a tax reform proposal have been reported to be strongly in favor of LIFO repeal.

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 allows you to send a message in support of LIFO to the appropriate House Representatives and Senators 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

GovTrack Representative/Senator Contact Tool
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