Trade Association Heads Push Back Against LIFO Repeal

Trade Association Heads Push Back Against LIFO Repeal

Last week, ASA Executive Vice President Mike Adelizzi was invited to join with a small group of trade association leaders to spend the day on Capitol Hill meeting with lawmakers about the importance of LIFO to business large and small.

Joining with the executives of the National Association of Wholesaler-Distributors, the Food Marketing Institute, the National Grocers Association and the American Fuel and Petrochemical Manufacturers, ASA was in a key position to stand up for small and family-run businesses in America.

The group expressed their concern that LIFO repeal has appeared in the House Republican draft of comprehensive tax reform, so they made their case directly to the authors of the draft language. Although tax reform appears dead for the remainder of the year, it is still important to reinforce LIFO’s value to all businesses and that it is not just used by the oil and gas industry, which has long been the perception.

Working with a number of our member companies that are users of LIFO, we were successful at painting the picture at what repeal (one of the only retro-active tax increases being considered) could do to a small business. In addition, we were able to describe the immeasurable value of a PVF supply house to the refinery operators who are members of American Fuel and Petrochemical Manufacturers.

The message we delivered was one that was unified, diverse and impactful. The message we heard was equally as diverse. While the members we met with were very much aware of LIFO’s importance, they also talked about the reality that in order to achieve comprehensive tax reform, every stakeholder may need to give something up and have some skin in the game, making the importance of our advocacy work all the more critical and relevant.

The association heads met with the following members of the House Ways and Means Committee: Rep. Todd Young (IN-9), Rep. Diane Black (TN-6), Rep. Charles Boustany, MD (LA-3), Rep. Jim Renacci (OH-16), Rep. Paul Ryan (WI-1), Rep. Aaron Shock (IL-18), Rep. Kevin Brady (TX-8) and Rep. Mike Conaway (TX-11), a member of the CPA and Accountants Caucus in Congress.

To learn more about ASA's stance on legislative & regulatory issues, visit our Advocacy page.
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