Ken Daniels, Founder of the Topeka Independent Business Association, spoke on the subject of tax reform and the Last in first out Method in a August 12th article published in the Wichita Eagle Business Column. A full version of the article is available by clicking here: Daniel’s LIFO-Tax Reform Article
In his business column, Daniel discussed the reality that tax reform is needed. He called it ‘unbearably complex’, and stated the negative impact of the U.S. tax code on small businesses. He went on to draw the thought that small businesses can’t be the victim of tax reform.
On the subject of LIFO, Daniel stated, “LIFO helps protect cash flow during inflationary periods, so businesses can purchase the products, materials and equipment they need to operate”. He mentioned that the effect of changing from LIFO to another accounting method would cause excessive and unreasonable retroactive taxes; furthermore, it would raise future tax rates for small business, too.
Mr. Daniel further discussed the negative impact of repeal and stated, “costs would be debilitating for affected small businesses”. He then called proposals to repeal LIFO “an expedient way for Congress to raise taxes on the businesses and their owners who can least afford it and don’t have the resources to push back”.
In summarizing, Daniel called small business a substantial contributor to U.S. jobs & the driving force of Americas economy. He called for applicable lawmakers to, “keep LIFO for the sake of small businesses”……”and enact pro-business reforms that reach all the way down to Main Street”.
Bob Richardson
LIFO-PRO, Inc.