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The LIFO Coalition is seeking contributions to fund a new grass roots campaign to preserve LIFO in any new tax reform package that may come out of the House or the Senate. With the long-awaited release of the Tax Reform Act of 2014, the LIFO accounting method is once again under threat from policymakers in Washington. Make no mistake- the threat is bipartisan, the issues complex and the consequences of failure to preserve LIFO enormous and far-reaching.
While House Ways and Means Committee Chairman David Camp’s (R-Mich.) proposal is dead in the water in this session of Congress, the likelihood of its provisions serving as a baseline for future legislative consideration, or negotiation, in 2015 is profound. Accordingly, the Coalition believes a wide spectrum of stakeholders can and should take action now to ensure LIFO is not relegated to the role of “poor cousin” to more visible, politically potent tax reforms or pay-for requirements in the not too distant future.
As Congressional attention and debate has now turned to those issues that will be front and center as part of the 2014 elections - job creation, health care, government spending, deficit reduction, etc. - the Coalition, of which NAEDA is a member, is not attempting to outmatch these national political priorities on a seemingly obscure issue of such complexity, but rather position LIFO as consequential to them in relatable terms. In short, the potential repeal of LIFO impacts these issues by forcing unforeseen business, capital and policy decisions. Any repeal should therefore be considered in the context of national policy debates, not separate and distinct.
To be effective, it will be essential to step back from the complexity of LIFO and instead focus on and define the real-world human impacts of its potential repeal, positioning local influencers (area employers, small businesses, etc.) who would be adversely affected. This must be done by directly engaging targeted policymakers, as well as the media and voters in their districts and states based on their positions.
Funding for this effort is needed by the Coalition. If a LIFO repeal would be costly to your dealership, please consider donation to this cause. Checks can be made payable to:
Washington, DC 20005