Obama's Framework for Business Tax Reform

[KRAM1]

A joint report recently issued by the White House and the Department of the Treasury entitled "The President's Framework for Business Tax Reform" on page nine mentions...

"Specifically, the President's Framework would:"

"Eliminate "last in first out" accounting....."

OK, for my accountant and business friends out there WOW! SIMPLY WOW! Do you realize how many businesses count on and use LIFO as a protection against false inflated profits" as regards to their inventories? Just think how this would effect the distilleries for instance....when the product is barrelled, it has a very low value...when it is bottled and sold...say after 25 years...that value is much greater, but it really is not profit at all....eliminate LIFO and BINGO..."false profit" for the government tax coffers! You have got to be kidding me!!!!

This just coming as the US will soon get to yell...We're #1, we're #1...and in this case it will be a very dubious #1 indeed. The US will soon become the world's #1 nation in respect to corporate taxes...the US will lead the world with the highest corporate tax structure of any nation...just as soon a s Japan (who help that lovely distinction with the US at #2) puts into place its recent corporate tax reduction plan. Why, simple...Japan wants to increase corporate tax revenues so they decrease the corporate tax rate. Easy...watch Japan's corporate tax revenues grow and watch the US's decline...

OK, accounting types...what about this LIFO thing? I am about to have a heart attack? I cannot imagine this actually seeing the light of day. Tell me this proposal is DOA! PLEASE! Good grief...even for Obama this is really "out there"!

Obama seems to think LIFO is a "corporate tax loophole".....as this is in his "Framework for reform" for corporate taxation where he wants to close the "loopholes" while he reduces the overall rate...yea, right!

Amazing stuff...and, before the libs who think this info comes from some right-leaning think tank...it comes directly from the WHITE HOUSE and the Dept. of the Treasury! WOW...just WOW! I need a glass of beer and a nap!

[EagleMBA]

I was taught that there are three methods for valuing inventories:

LIFO

FIFO

CHEATO

You do what makes sense.

[yyz28]

This president is so naive in the basics of business and the economy. Nothing he proposes surprises me anymore. We keep being fed that he's a borderline genius and is the next coming of Bill Clinton when it comes to being politically savvy, yet he steps in it at virtually every turn and proposes things that make absolutely no sense in content. Likely, the proposal is DOA. The Republican Congress won't let something this economically damaging through, which is why Obama proposed it in the first place. Anyone who believes he ACTUALLY WANTS business tax reform has lost their mind. He wants another thing to beat the Republicans up as having blocked. The problem with that is that the polls show it isn't working anymore.

[KRAM1]

This president is so naive in the basics of business and the economy. Nothing he proposes surprises me anymore. We keep being fed that he's a borderline genius and is the next coming of Bill Clinton when it comes to being politically savvy, yet he steps in it at virtually every turn and proposes things that make absolutely no sense in content. Likely, the proposal is DOA. The Republican Congress won't let something this economically damaging through, which is why Obama proposed it in the first place. Anyone who believes he ACTUALLY WANTS business tax reform has lost their mind. He wants another thing to beat the Republicans up as having blocked. The problem with that is that the polls show it isn't working anymore.

INDEED!

[KRAM1]

Obama calls a GAAP long-standing accepted practice a "Tax loophole" and then goes out of his way to try to convince folks that he is not anti-business? What turnip truck does he think everyone except the mainstream media (who have not so much as mentioned this abomination of a proposal) fell off of recently? The guy is absolutely CLUELESS!

Hopefully, this is Obama simply pandering to his base one again and it will be dead before it sees the light of day!