Updates are added to this page when new developments occur
LIFO Preserved in Tax Bill Conference Report
The conference committee released their final tax reform conference report last week which will be voted on in both houses of Congress this week where it is expected to pass and be sent to the President’s desk for his signature. LIFO is not mentioned in the conference report – so we have absolutely survived the threat that LIFO would be repealed in a comprehensive tax reform bill.
Thanks to the companies whom reached out to their members of Congress in support of LIFO; your efforts greatly helped in making this victory possible!!!
LIFO Repeal Excluded From House & Senate Tax Bills
The Senate Finance Committee has just released the tax reform bill that they will begin considering in committee next week, and LIFO repeal is not in their bill!! That means that the tax reform bill passed out of the House Ways and Means Committee this afternoon AND the bill that will be considered by the Senate Finance Committee next week DO NOT INCLUDE LIFO REPEAL!
We are not entirely out of danger. While LIFO repeal will almost certainly NOT be added to the House bill, the Senate bill is still open for amendment and the need for more tax revenue could bring LIFO into play. But while we are going to watch the Senate action closely, we are very optimistic that LIFO will be spared.
This has been a long odyssey for all of us, and a text book case for how businesses can impact public policy when they are engaged. So huge thanks to all of you – and for every call you and your members and clients made and every letter sent!!
Senate Finance Committee Members Committed to LIFO Repeal
LIFO Coalition Chair Jade West stated the following in a message sent to LIFO-PRO this morning:
“Multiple Senate Finance Committee (SFC) members have recently stated that they’re committed to include LIFO repeal in the Senate tax reform proposal. The House excluded LIFO repeal from their tax bill, but companies & CPA firms need to contact their Senate Finance Committee members to urge them to do the same & keep LIFO repeal off the table.”
West also stated the following in her message:
“There are key Senators in the following states:
Georgia, Iowa, Idaho, Kansas, Kentucky, Louisiana, North Carolina, Nevada, Ohio, Pennsylvania, South Carolina, South Dakota, Texas, Utah & Wyoming
If you have operations in ANY of these states, we need your participation in this effort. Company outreach has historically been proven to be the most effective means of preserving LIFO, therefore it is extremely important for companies & CPA firms to get involved by contacting their SFC members in support of LIFO before it’s too late.”
UPDATE: It’s anticipated that the Senate will release the details of their tax reform proposal by no later than next Monday & it’s imperative that companies reach out to their Senator’s in support of LIFO prior to their tax bill being released!
Contact your Senate Finance Committee members & urge them to keep LIFO repeal off the table today. It’s vitally important for Congress to receive support for the LIFO method from businesses that are LIFO taxpayers. Members of Congress or their staffers will always listen to their constituents’ concerns.
Instructions for who to contact, how to contact them, what to include, how to format your message & a sample LIFO support letter are provided below.
LIFO support letters should be sent to Senators that represent:
All messages sent to Senators are read by their office staffers; use the instructions below to identify the appropriate office staffers to contact (Senate office staffer contact information provided in link below)
Send your letter to the following Senate offices/staffers:
LIFO support letters must be emailed or faxed to your Senator’s state and/or DC office staffers (email preferred method)
Click the Senate Contact Information link below to obtain the contact info for your Senator’s office staffers (including email address & fax number)
Senate Contact InformationContact information – Include following contact information in your message:
Message content & talking points – Main talking points include any of the following:
A sample letter in support of LIFO & a one-page LIFO Infographic is shown below. For additional message content ideas, a list of Preserve LIFO Resource links are provided below the sample letter.
LIFO Coalition Urges Companies to Take Action Now & Contact Congress in Support of LIFO
LIFO-PRO received the following message from The LIFO Coalition today:
Last week it was announced that, sometime during the week of September 25th, the key players in the tax reform effort will release a tax reform proposal, or at least an outline for reform. Once they release their outline, the House and Senate tax-writing committees will begin developing specific tax reform legislation to be considered by each house of Congress. This process could begin as early as mid-October.
LIFO Coalition members have had numerous meetings with members and staff of the House Ways & Means & Senate Finance Committees, and with White House and Treasury Department officials.
In some cases, there are indications that a decision has already been made to include LIFO repeal in any tax reform package.
What is clear is that tax writers are intently looking for “pay-fors” – sources of new tax revenue that can be raised to offset the revenue that will be lost by the reduction of business income tax rates. Among some tax writers, any and all tax provisions that could raise revenue are on the table, LIFO repeal included.
Key members of the Senate Finance and House Ways and Means Committees MUST hear from businesses in their states and districts urging their opposition to LIFO repeal and explaining how repeal would negatively impact the employers and workers in their districts/states – their voting constituents.
It is vitally important that these key tax-writers hear from constituent businesses in their states/districts in the next few weeks – before a fully-developed tax reform proposal is released by the House Ways and Means Committee.
Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Minnesota, Nebraska, Nevada, New York, North Carolina, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming.
We have identified the locations and contact information for the district and state offices of each of these key tax writers.
Here’s what we need you to do:
**If you have a personal relationship with any of these Senators and/or House members, please contact those members ASAP. That is the most effective outreach.
**If you do not already have a relationship with any of these members of Congress…
A personal meeting is the most effective way to reach out to members of Congress –
their state and local district office staffs will communicate constituent concerns to their
bosses. Next best is to send a letter or fax to a local office. Least effective – but better than nothing – is a phone call to an office.
In each instance please identify your company as a constituent business and employer, and explain how repeal of LIFO would negatively impact your business – and the local economy. Please provide as much detail as possible – if LIFO is repealed you will have to lay off workers, postpone an investment, reduce or eliminate contributions to your workers’ retirement or health care plans…etc.
Jade West, LIFO Coalition Executive Secretariat
Please let LIFO-PRO or The LIFO Coalition know what offices you contact and what responses you get from the member of Congress and/or staff.
GOP Senate Finance Committee Members Considering LIFO Repeal to Generate Revenue for Tax Rate Cuts
LIFO-PRO has recently learned that four GOP members of the Senate Finance Committee are seriously considering LIFO repeal as a revenue source for their tax reform proposal. The LIFO Coalition contacted LIFO-PRO regarding this matter today and their statement is provided below:
Based on what many of us are hearing, LIFO repeal is definitely being considered as a pay-for in the tax reform debate, especially among Senate Finance Republicans.
It has also been confirmed that four GOP Senators that are on the Committee of Finance have recently spoke in favor of LIFO repeal during meetings held with the LIFO Coalition.
LIFO Repeal Debated as Possible Revenue Source for Senate Tax Reform Proposal
The senate has pivoted from working on health care to tax reform this week. The LIFO Coalition informed LIFO-PRO that LIFO repeal is part of the tax reform discussion. The LIFO Coalition contacted LIFO-PRO regarding this matter and their statement is provided below:
The pace of tax reform is definitely picking up in Congress and the White House, with some saying that a full proposal could be released as early as mid-August. While that is still an ambitious schedule – and something less than a full, fleshed-out proposal is likely to be released first – the cancellation of part of the Congressional August recess makes it possible. What is clear is that the relevant tax teams from the House, Senate and White House are meeting regularly and making progress on a reform proposal. And despite the previous intense focus on House Blueprint, it’s also clear that the Senate is deeply involved in developing a tax reform plan and it appears that they are further along than previously understood.
What is also clear now is that LIFO repeal is part of the tax reform discussion.
While we do not believe that any decisions have been made, we do know that 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. The following has been specifically reported:
The Republican members of the Senate Finance Committee along with Chairpersons of the Republican Senate Committee and Conference will continue to work on a tax reform upon returning from their August recess. Companies are urged to contact their members of congress and ask then to preserve the LIFO method.
We received an email from the LIFO Coalition on June 24 that discussed the retention of LIFO in the House GOP Tax “Blueprint”. The LIFO Coalition later released a statement regarding this topic on their website that can be viewed by clicking here: 06/2015 LIFO retention message
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