Special Note: NAEDA wants to thank AED and their legal counsel, Christian Kline, for permission to publish and edit this article they published on November 25, 2013. While this article is based on their concerns, these same concerns have been expressed by NAEDA and will continue to be as tax reform is debated.
If you doubted warnings that everything is on the table in the current tax reform debate, doubt no more. Last week, the Senate Finance Committee unveiled a sweeping proposal to change capital expenditure and accounting rules in an effort to both simplify the tax code and pick up revenue to finance a corporate tax rate cut. Top targets are like-kind exchange (LKE), last-in, first-out (LIFO) accounting, and a number of current tax code provisions important to AED members and our customer industries. The bottom line: There’s a lot for equipment distributors to be concerned about and not much to like in the Finance Committee’s discussion draft.