MSCI, LIFO Coalition Plan To Ramp Up Activity To Save Last In-First Out
MSCI attended a meeting of the LIFO Coalition last week in which coalition members discussed comprehensive federal tax reform and its potential impact on last in-first out (LIFO), an accounting method that has been used by U.S. businesses since the 1930s.
As Connecting the Dots has reported in the past, the White House and negotiators on Capitol Hill have both targeted LIFO for elimination during their deliberations on federal tax reform.
In last week’s meeting, coalition representatives reported that they had met with staff members on the Senate Finance Committee business tax reform working group and that there “is great pressure” on the working group to end LIFO as a revenue offset for tax reductions. The coalition representatives said it is very possible LIFO will be repealed unless the coalition “can turn the tide” and offer alternative revenue raisers.
In an effort to turn that tide, MSCI and the LIFO Coalition plan to:
- Send letters to several senators on the Senate Finance Committee to outline the harmful effects of LIFO repeal;
- Educate Senate Finance Committee working group members in Delaware, Florida, Georgia, Indiana, Kansas, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, South Dakota and Virginia on the harmful effects of LIFO repeal with member company phone calls over the next two weeks;
- Write an opinion column in favor of keeping LIFO to be published in local, state or national newspapers; and
- Gather examples of the consequences of LIFO repeal via member-company surveys.
Please stay tuned to Connecting the Dots for more information on this issue and, if you are a CEO or finance/accounting executive in one of the states listed above, please check your inboxes in the coming weeks for an email from MSCI President and CEO Bob Weidner asking your company to take action to save LIFO.
To learn more about the LIFO Coalition, click here. Congress’s Joint Committee on Taxation estimates repealing LIFO would increase taxes by $100 billion over ten years. Approximately 60 percent of MSCI’s service center members report that they use LIFO, which means repeal would have a devastating impact on our industry and its employees.