** PLEASE DESCRIBE THIS IMAGE **

 

 

LIFO Repeal Updates


2017 Updates


09/21/2017:

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.

We need companies that use LIFO to get involved today

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.

There are key members of the House and/or Senate in the following states:

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.

If you have operations in ANY of these states, we need your participation in this effort

We have identified the locations and contact information for the district and state offices of each of these key tax writers. Senators of course represent their entire state, and we have identified the general location of each of the Congressional Districts so you can see if you have operations in or near their districts. To view and print the list, go to: https://www.naw.org/files/StateOffices.pdf

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…

1. Call or write to the Congressional offices which are located closest to your company operations and request a meeting with an appropriate staff member to discuss LIFO
2. Send letters/faxes to each relevant office urging members to oppose LIFO repeal

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.

Members of Congress and their staffs will always listen to their constituents’ concerns. The LIFO Coalition has prepared a succinct two-page “Fact Sheet” addressing the key issues in this ongoing debate; to view and print the fact sheet, go to: https://www.naw.org/files/FactSheet.pdf

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.


How to Take Action


Contact Congress in support of LIFO online, via email, physical mail, in person, or by phone


Contact Congress Online


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


Who to Contact

Companies should contact the following members of Congress that match one or both of the following criteria:

  1. Represent the state that your company is headquartered in
  2. Represent a state that your company has facilities/operations in

Use the Congress Contact Information links listed below to locate the contact information for your member of Congress.

What to Include in Your Message

1. Contact information – Those who wish to send a message to congress in support of LIFO should include the following contact information:

  • Full Name
  • Company Name
  • Company location
  • Number of employees
  • Number of years on LIFO (if known)
  • Clearly state that the location of your business falls within their constituency

2. Message Content & Talking points – Providing specific details of how your company and/or the economy would suffer from LIFO repeal is HIGHLY EFFECTIVE! Suggested talking points include describing how LIFO repeal would affect any of the following:

  • 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

See the LIFO Repeal Contact Congress Resource links for message content ideas including LIFO facts & more


Congress Contact Information


Congressional Offices Contact Information
GovTrack Contact Congress Tool

Sample LIFO Preservation Message to Congress


Sample_LIFO_Preservation_Letter_to_Senators

LIFO Repeal Contact Congress Resources


Budgetary & Economic Impact of LIFO Repeal – Tax Foundation Study
Reasons for Congress to Keep the LIFO Inventory Method LIFO Insights Blog
LIFO Coalition Homepage
LIFO Repeal Archives
Sample LIFO Preservation Letter to Congress
LIFO Coalition Fact Sheet


09/18/2017:

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.


Sample LIFO Preservation Message to Congress


Sample_LIFO_Preservation_Letter_to_Senators

–>

07/17/2017:

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:

  • One House Ways and Means Committee member said recently that if the BAT did not survive, the Committee would “be looking under every rock” for alternative revenue sources
  • Two influential House members specifically mentioned LIFO repeal as a potential revenue source
  • It has been reliably reported that the tax reform proposal released by former House Ways and Means Chair Dave Camp in 2014 is being looked at as a source of ideas for revenue – and the Camp bill included LIFO repeal
  • House and Senate staff have said that “everything is on the table” and that stakeholders should be talking to Senate Finance members NOW if they have a tax issue of concern
  • Key Congressional staff have raised the possibility of LIFO repeal with a reduced tax rate on the recapture tax, similar to a repatriation tax.

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.


2016 LIFO Coalition Updates


06/24/2016:

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


LIFO Repeal Archives


LIFO Coalition Response Letter to Senate Finance Committee – 06/26/2006
National Association of Manufacturers Preserve LIFO Letter – 09/2006
Tax Analysts Report: “Why LIFO Repeal Is Not the Way to Go” – 11/07/2006
LIFO In A Nutshell – 03/07/2007
LIFO Coalition Letter to President Obama – 01/27/2012
LIFO Coalition Statement to House Ways & Means Committee – 07/19/2012
LIFO-PRO’s Preserve LIFO Letter to Kevin Brady – 04/15/2013
Representatives Lankford & Thompson Preserve LIFO Letter to Rep. Camp – 04/10/2014
Dear Colleague Preserve LIFO Letter: Representatives Lankford & Thompson – 04/29/2014
Dear Colleague Preserve LIFO Letter: Senators Donnelly & Enzi – 09/17/2014
LIFO Coalition Letter to the Senate Finance Committee – 03/31/2015
LIFO-PRO’s Reasons for Congress to Keep the LIFO Inventory Method – LIFO Insights Blog