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:
Send A Message to Congress
- 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
- 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