Thune is a member of the Senate Finance Committee, so he’ll have some sway when that committee writes a tax reform bill. Sen. Ben Cardin (D.-Md.), who coauthored recommendations on tax reform as cochair with Thune on the Finance Committee’s Business Income Tax Working Group, isn’t cosponsoring S. 1144. But a Senate staffer says that a number of provisions from the Thune/Cardin recommendations are in S. 1144, meaning it could attract Democratic support. Some of its provisions include:

  • More small and medium-sized corporations—those with average gross receipts of $15 million or less over last three years—would be able to use the cash method of accounting.
  • The bill would simplify inventory accounting for small and medium-sized companies so inventory can be deducted immediately, and businesses that have inventories wouldn’t be disqualified if they otherwise can use the cash method of accounting.

About the Authors

Stephen Barlas
Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.

September 2017

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