Home / Knowledge / News / NRF urges Congress to avoid repealing LIFO method
NRF urges Congress to avoid repealing LIFO method
04
Jul '11
The National Retail Federation sent a letter to all Members of the U.S. Senate and U.S. House of Representatives strongly urging them to oppose efforts to repeal the well-established, 70-year-old Last-In, First-Out (LIFO) inventory accounting method, saying the measure could put American jobs at risk during a fragile economic recovery.

“LIFO is a well-established inventory accounting method that has been in the law for more than 70 years. It is not a 'tax loophole,'” wrote David French, NRF Senior Vice President of Government Affairs, in the letter. “If LIFO were repealed, it would create a huge retroactive tax increase because of the accounting decision companies made decades ago. It would also cause retailers to have to direct scarce capital resources to new accounting systems, rather than investing in maintaining and growing their core business.”

In the letter, French says LIFO is a method of accounting under which income is measured by treating the most recently purchased inventory as the first to be sold and that it is the best accounting method for matching current costs with current revenue.

“Repealing LIFO will hinder our already fragile economic recovery,” said French. “Any changes to corporate taxes should be done in the context of overall corporate tax reform, not in a piecemeal fashion.”As the highest effective taxpaying industry in the United States – which is also responsible for one in four American jobs – retailers believe it would be much more appropriate to consider the viability of the LIFO method in the context of overall corporate tax reform that lowers the rates and broadens the base, providing a more level playing field for U.S. businesses.

National Retail Federation

Must ReadView All

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search