Dozens of Signatures Secured for House LIFO Letter
June 2, 2014
AFS sent more than 200 letters to House lawmakers in support of a “Dear Colleague” letter circulated by Representatives Jim Lankford (R-Okla.) and Mike Thompson (D-Calif.) opposing repeal of the Last In First Out (LIFO) inventory method. The letter, addressed to Ways and Means Committee Chairman Dave Camp (R-Mich.), specifically urges the chairman to remove LIFO repeal from the tax reform proposal that was issued earlier this year. There are now more than 110 signatures on the LIFO letter; this represents a full 25 percent of the House.
AFS strongly supported this letter as the repeal of LIFO would significantly harm many U.S. metalcasting facilities. Since most foundries have their profit tied up in inventory and equipment, taxing that inventory profit when a company still has that profit invested in its inventory will erode a company’s capital and force it to reduce the scale of its operations.