I work with numerous manufacturing and distribution companies and several of them use LIFO (last in first out) to value inventory. President Obama's 2010 Budget lists the repeal of LIFO starting in 2012 as a possible source of funding to finance his proposed universal health care legislation.
Recently the LIFO Coalition members met with members of the Senate Finance Committee and/or their aides and they have expressed the possibility of the repeal of LIFO to be very real.
Up to this point, the LIFO Coalition has focused more on trying to convince Congress that the LIFO method is not a tax loophole and that the method is used by many types of businesses including many smaller businesses (there are approximately 20,000 corporations using LIFO, of which only about 600 are publicly traded companies). The feedback the LIFO Coalition has recently received back from Congress is that they do not dispute the fact that LIFO is a legitimate accounting method. The main concern of the Senate Finance Committee now is that they need to raise substantial sums of new tax revenue and LIFO is a possible source of that revenue.
If you are interested in learning how you can get involved, the National Association of Wholesalers website has a page which allows you to send an email message to your Senator.
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