AWMA has joined with members of the LIFO Coalition to send a strong message to Congress not to uphold the President’s budget submission that includes a repeal of the LIFO – last in, first out – inventory accounting method.

LIFO is a textbook accounting method used by businesses which maintain inventory to clearly determine both “book” income and tax liability and LIFO has been an accepted and established accounting method in the U.S. for over 70 years.  Many of our association member companies have relied on LIFO for decades, creating many years of LIFO reserves and if LIFO were repealed, these companies would face substantial business challenges.

While repeal of LIFO could generate short-term revenue for the federal government, we believe that the long-term damage to our already fragile economy would far out-weigh any short-term increase in revenue.  

The letter AWMA sent to Congress clearly states that any attempt to repeal LIFO would be bad tax policy and bad economic policy that will result in job losses and decreased capital spending and investment.