NBWA Educates Congress about LIFO
The NBWA Federal Affairs team is on Capitol Hill every day advocating for beer distributors. While NBWA staff members are working hard to educate members of Congress about the importance of state-based alcohol regulation, they are also diligently monitoring other legislative issues that could impact business for beer distributors.
Many beer distributors utilize the “last-in-first-out” (LIFO) inventory accounting method and know how difficult it would be to pay taxes on LIFO reserves if LIFO were to be repealed. Last-in-first-out (LIFO) is a well-established inventory accounting method used by many beer distributors to determine earnings and tax liabilities. Congress first allowed LIFO to be used for financial reporting in the 1930s. For nearly three quarters of a century, LIFO has been used as an accurate way to measure financial performance and calculate tax liability.
Unfortunately, efforts to repeal LIFO have been in place over the last five years because it would raise a significant amount of revenue. This year, as the debt level continues to increase and discussions on tax reform take place, LIFO is at serious risk of being repealed.
In July, NBWA’s Senior Director of Legislative Affairs Holly Lass participated in a panel briefing on Capitol Hill to educate members of Congress and their staff about LIFO and the devastating impact of repealing it. Each of the panelists represented organizations that belong to The LIFO Coalition, including the National Association of Wholesaler-Distributors, Jewelers of America and the Small Business & Entrepreneurship Council.
“While beer distribution employees across the country are working hard each day to run their businesses and serve their licensed retail customers, NBWA works to ensure that their interests are represented in Washington, D.C.,” said Lass. “The opportunity to participate in a panel briefing and engage directly with a large number of congressional staff members is a great way to educate policymakers about issues that are important to the beer distributors who operate back home in their congressional districts.”