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Catherine Treadwell Perry, Director of Government Relations
|ASA Advocacy Meeting with House Ways and Means Committee Democratic Offices
This week the ASA Advocacy team will meet with ten of the House Ways and Means Committee- democratic offices to discuss the importance of Last in First Out (LIFO) accounting method and to ensure it is not used as a “pay for” for Medicare for All.
We will be meeting with the offices of Rep. Richard Neal (D-MA-1), Rep. Lloyd Doggett (D-TX-35), Rep. Bill Pascrell (D-NJ-09), Rep. Ron Kind (D-WI-03), Rep. Brian Higgins (D-NY-26), Rep. Gwen Moore (D-WI-04), Rep. Don Beyer (D-VA-8), Rep. Jimmy Panetta (D-CA-20), Rep. Dan Kildee (D-MI-05), and Rep. Jimmy Gomez (CA-34).
All of the member offices are Democratic House Ways and Means members. The Ways and Means Committee is the committee in Congress that handles tax issues. We previously, met with all of the Republican offices. Our meetings will be for the purpose of explaining the importance of LIFO, educating the members on LIFO, and ensuring there is not a LIFO repeal.
LIFO is designed to react to price fluctuation. It has a built in “toggle switch” that triggers tax when prices go down. The benefit from LIFO is recaptured when the taxpayer’s inventory levels decline, prices fall, or the taxpayer goes out of business.
Small businesses that operate on tighter margins particularly rely on LIFO to ensure their ability to maintain inventory levels. Repeal of LIFO could force many of them into deny not only to pay the recapture tax, but to replenish inventory- a backward spiral that will put them in a position of always trying to play catch up. Some may even be forced to go out of business.
The most important take away from our meetings will be to ensure that LIFO is not repealed. LIFO repeal would require the retroactive recapture of all LIFO related deductions that have been taken by LIFO taxpayers, sometimes over many decades. Under current law this recapture tax is paid only when the company reduces its inventory levels, experiences deflation, or goes out of business. To impose that tax in the absence of any of those triggering events would retroactively change the rules of LIFO taxpayers.
ASA Advocacy is dedicated to being YOUR voice in D.C. and on The Hill! Please contact Catherine Treadwell Perry, Director of Government Relations at firstname.lastname@example.org with issues that matter to you!
- New York Sen. Kirsten Gillibrand - who would not have made the debate stage - ended her presidential campaign, becoming the first senator to exit the race.
- The Democratic National Committee recommended rejecting a plan for "virtual caucuses" in Iowa and Nevada, according to a source with knowledge, citing "security concerns." The late move injects a level of uncertainty in the caucus states ahead of the upcoming nominating contests, particularly in Iowa, where caucuses are to take place Feb. 3.
- Former Vice President Joe Biden defended his faulty description of a campaign trail story about military heroism and his interactions with troops, telling reporters the "essence" of his recollection is correct. The story has fed into the narrative about Biden's penchant for verbal missteps, leading to media scrutiny, criticism online and grumbling from his rivals.
- Rep. John Shimkus (R-Ill.) said he will not run for re-election in 2020.
- Sen. Johnny Isakson (R-Ga.) said he will step down at the end of the year due to "mounting health challenges," clearing the way for Republican Gov. Brian Kemp to appoint a temporary replacement and setting up two Senate elections in the state next year, with Republican Sen. David Perdue up for re-election. Stacey Abrams, who ran unsuccessfully for governor last year and had already ruled out challenging Perdue, said through a spokesman that she would also not run for Isakson's seat.
- House Democrats are preparing for a short-term spending bill to avoid a government shutdown at the end of September. Talk of a short-term plan comes as lawmakers have yet to finalize appropriations legislation: The House passed 10 of the 12 appropriations bills earlier this year, but the Senate has yet to vote on any of them.
- Ron Johnson (R-Wis.) and Chris Murphy (D-Conn.), two members of the Senate Foreign Relations Committee, said they were denied visas to visit Russia as part of a bipartisan trip next week. On Twitter, the Russian Embassy in Washington said Johnson never asked for a visa and hadn't informed the country about his plans, but did not explain why it was barring Murphy.
- The Trump administration is preparing a rule that would raise the annual salary threshold that generally determines who qualifies for time-and-a-half overtime pay from $23,660 to around $36,000, according to sources. The Department of Labor rule, which is set to be completed as early as next month, would affect workers in numerous industries, including retail, fast food, higher education and nonprofits
- China is willing to resume trade talks with the United States with a "calm attitude," said Gao Feng, spokesman for China's Ministry of Commerce. Gao, however, didn't confirm President Donald Trump's remark earlier in the week that Chinese negotiators called the United States over the weekend saying they wanted to reach a deal soon.
- Tomas Philipson, acting chairman of the White House's Council of Economic Advisers, said reporters who have written about potential warning bells of an economic recession "want people to lose jobs" and "become not economically self-sufficient" as the administration worries that attention on those economic signals could weigh on consumer sentiment . Investment declined this spring while manufacturing output has faltered and the Federal Reserve has cut interest rates amid escalating trade tensions, although it has yet to drag consumer spending, which Philipson notes could be impacted by "the way the media reports on our economy."
- The Environmental Protection Agency proposed to rescind Obama-era regulations requiring the oil and gas industry to monitor, reduce and inspect for methane leaks and would also prevent the agency from regulating emissions from preexisting wells and other sites. The proposed rule, which the Trump administration intends to finalize in 2020, could result in litigation and years of uncertainty over federal methane regulation.
- President Donald Trump said on Twitter that he will release "a giant package" favorable to the ethanol industry that would go beyond the extension of E15 sales the administration previously implemented, though he did not provide further details.
- In a vote of 4-0, the Federal Energy Regulatory Commission said that New York state waived its Clean Water Act authority to review the Williams Cos.' Constitution Pipeline by not issuing a permit within the law's one-year window, reversing an earlier FERC decision.
- House and Senate are in recess
| || NEWS FROM STATE AND LOCAL |
- There is no state activity to report on this week.
The deadline recently passed for candidates to qualify for the next Democratic presidential debate and only 10 made it, narrowing the largest field in history to a more manageable size. Gone, for now at least, are the two-night debates of June and July, since everyone can fit on one stage, one night, for next month's debate in Houston. The only real suspense came in the form of billionaire Tom Steyer, who fell one poll short of qualifying even after spending nearly $12 million on advertising to boost his campaign.
Democratic White House hopefuls should ensure their Medicare for All proposals honor union-negotiated private insurance, AFL-CIO President Richard Trumka, head of the largest federation of U.S. labor unions, said recently. How to best extend health coverage to millions of uninsured or under-insured Americans has been one of the early issues defining the Democratic nominating contest to take on Republican President Donald Trump in November 2020.
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