The American Supply Association applauds the work of the House and Senate in passing a sweeping reform of the country’s tax code — reforms not achieved since 1986.
For years, ASA, along with hundreds of business groups, have been pushing Washington to address the inequities in the tax code and bring certainty to millions of small businesses and manufacturers across the country.
“Since ASA opened its Washington office, one of our key priorities was preserving the use of LIFO (last-in, first-out) for our members,” ASA Director of Government Affairs Dan Hilton said. “Being a significant source of revenue for tax writers made its repeal an ever constant threat, one that members of ASA would not take lying down. ASA is pleased LIFO will remain a tool available to its members as the new measure preserves its use in the tax code.”
The new tax law, H.R. 1, the Tax Cuts and Jobs Act, maintains seven individual rates, dropping the top rate from 39% to 37%, slashing the uncompetitive corporate rate from 35% to 21% and helping working families by doubling the child tax credit to $2,000, ASA explained. While no one constituency can claim they received every provision, credit or deduction in the tax code that they worked toward, this bill achieves reforms not seen in history, ASA added.
“Though the corporate rates were made permanent, those set at the individual level expire in 2025, which require stakeholders to remain engaged now and into the future,” Hilton said. “Employers have waited years for this moment. ASA and its leaders welcome this hard-won relief and look forward to building on the growth this law will help them achieve.”