Aftermarket Insider Issue 72 - (Page 26)

i N S i D E L EG i S L AT i o N happenIngs on the hIll AAIA Working with Congress To Protect AAIA Members The 112th Congress will be “super committee” that was appointed by House and Senate leaders to reduce the nation’s deficit. That committee has until Nov. 23 of this year to report out specific measures for reducing the deficit by $1.5 trillion. Congress will then have until Dec. 23 to vote up or down on the package created by the super committee. AAIA is concerned that the LIFO elimination could end up in that mix unless action is taken now to educate lawmakers on the negative impact such action would have on small business. Labor union Agenda heading into the final months of its first session this fall. Clearly, the daily events in the nation’s capital have not been very flattering over the summer, and with another presidential election looming, things don’t appear much better for the fall. Still, several issues of importance to the aftermarket and other small businesses could receive congressional consideration. The following is a brief list of topics that will be on the radar screen for the AAIA government affairs department over the next several months. LIFo Elimination Clearly, the priority for the current Congress will continue to be tackling the nation’s growing budget deficit. While there will be a number of proposals under consideration, one proposal being promoted by President Obama will be eliminating use of the Last In First Out (LIFO) inventory method. LIFO is an accounting method used by many AAIA members to project the cost of replacing inventory. Through this method, businesses assume that they sell inventory most recently obtained, instead of inventory they have held the longest. From this, particularly during a period of rising costs, businesses deduct the higher price of replacing inventory from the gross sale, thus establishing a more accurate assessment of taxable income. There is considerable concern that there will be attempts to eliminate the use of LIFO as part of the budget proposal that is going to be developed by the You might remember the “card check” issue being strongly pushed by labor unions. Card check would have eliminated the option of using a secret ballot at work sites for determining 26 | AFTERMARKET INSIDER | VOLUME 72 http://www.aftermarket.org/Government.aspx

Table of Contents for the Digital Edition of Aftermarket Insider Issue 72

Aftermarket Insider Issue 72
Contents
President's Message
AAPEX News
Doing Your Industry Proud!
Segment News
Campaign Update
Toolbox: AAPEX Website
Association News
AAIA Market Intelligence: Don’t Do Business Wit hout It!
Market Intelligence
Green Highlight
Technology Update
Inside Legislation

Aftermarket Insider Issue 72