Job Creation? How About LIFO to FIFO?

It has been 789 days since the last time the United States government passed a budget. During that time Democrats in Congress have called for another round of increased income taxes and Republicans have called for a round of government spending cuts. President Obama has had rounds in mind too. He has pointed an accusing finger at the "rich" while finding the time to play seventy-five rounds of golf. Over the weekend there were reports that the president and his team, which saw the budget proposal they sent to Capitol Hill defeated 97-0, come up with a new idea. The White House wants to grab $72 billion in new taxes from American businesses by forcing them to change their accounting methods from LIFO to FIFO.

LIFO is an accounting method that best reflects costs of inventory during times of inflation. Apparently amidst all of the handwringing over all the "cash" sitting on the sidelines, it would seem that prospective employers greatest fears about being under-reserved were realized. With the latest White House proposal, the effect of a change from LIFO to FIFO will allow the federal government to confiscate a significant portion of payroll maker's cash reserves.

Sadly, nowhere in the latest budget discussions was any sign that any entitlement reforms would be on the table. Also there is no change in energy policies that see Americans exporting its wealth each month while it imports oil. Nowhere was any indication that either party was going to call on the 51% of American households that contribute nothing in federal income taxes, to get involved in the process of funding all the invaluable things government does. And so it is. Nothing has changed.

America will continue to refuse to help itself on energy. The top 25% of all income tax filers in the nation will continue to pay more than 87% of all the taxes. The bottom half of all income tax filers who actually pay income tax, will continue to provide just 13% of total income tax revenues. And the president will continue to sharpen his short game on the golf course while the First Lady wraps up a week on an African safari.