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MAKE IT STOP

May 02, 2006

Our elected leaders continue to deal with the challenge of high gas prices with the thoughtfulness and deliberation we've learned to expect of teenagers with car keys, a credit card and a bottle of Peach Schnapps.

Last week, Senate Majority Leader Frist proposed fighting high gas prices by repealing LIFO inventory accounting. This would enable Congress to issue everyone a $100 check to fight high gas prices.

Senator Frist has now backed away from this idea. While I wouldn't mind a repeal of LIFO as part of a simplification of the tax law leading to lower rates and lower compliance costs (full disclosure: I am a compliance cost), the idea of repealing a 60+ year old inventory method used by a huge number of taxpayers to enable the Senator to mail checks to voters in advance of an election shows how much our elected officials need to get out of Washington for an extended break. Maybe 2 or 3 years.

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