LIFO Again A Target To Raise Revenue
The U.S. Congress’s Joint Committee on Taxation has again included last-in, first-out (LIFO) in its annual “Estimates of Federal Tax Expenditures,” signaling lawmakers could begin looking at LIFO repeal as a means to increase federal revenue in a resource-constrained environment. In fact, the committee’s LIFO estimate increased somewhat this year, meaning repeal could be even more attractive to lawmakers who want to increase taxes.
Additionally, the U.S. Congressional Budget Office (CBO) included repeal of LIFO as a potential revenue source in its “Options for Reducing the Deficit: 2021 to 2030.” The CBO estimates repeal of LIFO would produce about $60 billion in revenue over 10 years.
The LIFO Coalition, which MSCI is a member of, is preparing a letter to CBO in response to their report. Stay tuned to Connecting the Dots for more information.