Proposed retroactive tax change jeopardizes American manufacturing & jobs

With millions of American still out of work, the need to provide certainty in the economy is more urgent than ever. American businesses of all sizes, like CountryMark, rely on an established accounting method of calculating inventory called "Last in, First Out" or "LIFO" that has been part of the U.S. tax code for more than 70 years.

A retroactive tax change proposal put forth in the President's budget would repeal LIFO and could be considered as part of debt ceiling negotiations. Make no mistake. Repeal of LIFO is an unexpected tax increase on 36% of all American businesses, including CountryMark and many CountryMark customers. Companies of every size and in every state will be forced to pay more taxes, destroying jobs in the process.

Repealing LIFO will:

1. Place a massive, unprecedented retroactive tax hike on job creators
2. Increase cost for businesses that will result in less growth, job losses and reduced employee benefits
3. Force companies to pay taxes on unrecognized "phantom profit" caused by inflation

Repealing LIFO will not create jobs. It will destroy them.

At a time when the country is relying on the private sector to reduce unemployment, punishing job creators with a retroactive increased tax on phantom income - income that does not exist - would send a clear signal to employers and job-seeking Americans that Washington isn't listening and can't - or won't - help.

Worse yet, retroactively penalizing business owners for following existing tax laws is fundamentally flawed policy and an unfair way to offset Congressional over-spending. In short, the message to taxpayers is: "You followed the law, but we changed our minds so pay us now for what you did legally in the past."

We urge you to reject this misguided tax increase. This is not the time to unfairly raise taxes on the companies we need the most to create jobs.

Contact the White House Comment line at 202-456-1111.

Tell the White House you DO NOT support the repeal of LIFO.

More information about this proposed retroactive tax change:

Small Business Administration Opposes Retroactive LIFO Tax Proposal

Business Groups Challenge White House Push to Curb Tax Breaks