Home / Knowledge / News / NRF urges Congress to avoid repealing LIFO method
NRF urges Congress to avoid repealing LIFO method
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 “If LIFO were repealed, it would create a huge retroactive tax increase because of the accounting decision companies made decades ago.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 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

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

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


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