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Action required to save LIFO
The Industrial Supply Association has received an alert from the National Association of Wholesaler-Distributors (NAW) that new action is needed regarding LIFO (Last In First Out) Repeal efforts. With all options to raise revenues to address the national deficit being explored by Congress, bi-partisan groups of legislators are now looking at LIFO once again. The President also called for repeal in his Fiscal Year 2013 Budget, and pushed aggressively for repeal in deficit reduction talks last year. According to a statement from NAW:
“…More worrisome, even LIFO repeal opponents in Congress do not believe that LIFO is safe. Congress will be looking for new revenues to address the debt and LIFO repeal would generate a significant amount of that revenue.”
ISA is calling for all member companies and their employees to act now to convince Members of Congress that LIFO repeal should not be a part of deficit reduction and/or tax reform legislation. It’s clear that if LIFO repeal is included in legislation, removing it from that legislation will be extremely difficult, and perhaps, impossible.
To save LIFO, businesses which rely on it need to communicate with their U.S. Senators and Representative to urge them to oppose repeal. Even if you have written to your legislators about LIFO in the past, please write again! And, please encourage your employees to write as well. Your employees are constituents and voters wherever they work, so please write to the Members of Congress from ALL of your locations.
Be certain to provide information about your company, the number of workers you employ, and specifics on how repeal would impact your company and workers. If repeal would force you to lay-off workers, reduce salaries, stop funding health care or retirement programs, or to postpone a planned investment, let your legislators know. With unemployment still crippling our economic recovery a tax proposal that threatens jobs is much more likely to be rejected by Congress.
NAW has suggested that the following be emphasized in your communications with your legislators:
“…Finally, please point out that LIFO repeal would be an unfair and unprecedented retroactive tax hike – comparable to repealing the mortgage interest deduction and requiring taxpayers to pay back the tax savings they have properly and legally accrued using that deduction. Many Members of Congress are unaware of the retroactivity in LIFO repeal, and oppose repeal when they learn of its retroactivity.”
NAW has set up a grassroots “E-ALERT” on-line program to facilitate your outreach. Here are simple steps to follow to take action:
- Go to: http://www.naw.org/govrelations/grtools.php
- Click the “TELL CONGRESS” button in the top right corner of your screen. You will be linked to NAW’s “Take Action” E-Alert Program.
- Click on “SAVE LIFO”
You’ll find easy to follow instructions, including talking points, which will take you through the rest of the process. ISA members are urged to take action NOW.
As the NAW alert stated: “We will save LIFO only if Members of Congress understand it and the negative impact of its retroactive repeal on jobs and economic growth – and we make repeal too politically toxic for Members of Congress to support.”
Thank you for your support.