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![Last In First Out (LIFO) | TaxEDU Glossary](https://taxfoundation.org/wp-content/uploads/2017/01/inventory-300x225.jpg)
![The Effect of Capital Allowances on Taxes Paid Capital allowances and capital cost recovery oecd comparision depreciation tax corporate income tax policy](https://taxfoundation.org/wp-content/uploads/2022/04/The-Effect-of-Capital-Allowances-on-Taxes-Paid-300x226.png)
![global tax agreement global tax deal OECD global minimum tax rules corporate minimum tax rules Secretariat Proposal, OECD Public Consultation Document, Unified Approach under pillar one profit shifting definition tax planning and avoidance foreign direct investment FDI global tax deal impact of global tax agreement OECD international tax proposal](https://taxfoundation.org/wp-content/uploads/2022/05/global-tax-deal-impact-of-global-tax-agreement-OECD-international-tax-proposal-300x199.jpeg)
![JCT Pillar Two Revenue effects and federal revenue effects of Pillar Two global minimum tax revenue JCT House Ways and Means Committee function Renewing Investment in American Workers and Supply Chains Act to boost US competitiveness Federal tobacco tax proposal, Tobacco Tax Equity Act, would impose a federal excise tax on tobacco (including a federal cigarette excise tax)](https://taxfoundation.org/wp-content/uploads/2021/08/capitol_blue_sky_50-e1687455815800-300x200.jpeg)
Improving Tax Treatment of Structures Offers Commonsense Way to Boost Competitiveness
The U.S. tax system is biased against capital investments. Ending these tax penalties would boost economic output, productivity, and employment.
4 min read![Taxes, Tariffs, and Industrial Policy How the U.S. Tax Code Fails Manufacturing](https://taxfoundation.org/wp-content/uploads/2022/03/Taxes-Tariffs-and-Industrial-Policy-How-the-U.S.-Tax-Code-Fails-Manufacturing-e1647458467503-300x194.jpeg)
Taxes, Tariffs, and Industrial Policy: How the U.S. Tax Code Fails Manufacturing
Policymakers actively marginalized the manufacturing sector by saddling them with cost recovery rules that prevent them from deducting the full cost of investment in physical plant and equipment. Going forward, policymakers should avoid haphazard fixes, targeted measures, and protectionism.
50 min read![tax fairness economic growth and funding government investments Creating Opportunity Through a Fairer Tax System Tax Foundation Finance Committee hearing](https://taxfoundation.org/wp-content/uploads/2021/04/tax-fairness-economic-growth-and-funding-government-investments.-capitol-300x157.jpeg)
10 Tax Reforms for Growth and Opportunity
By reducing the tax code’s current barriers to investment and saving and simplifying its complex rules, lawmakers would greatly enhance the ability of Americans to pursue new ideas, create more opportunities, and build financial security for themselves and their families.
40 min read![taxing financial transactions. tax financial transactions, state taxes on financial transactions.state tax on financial transactions, taxes on financial transactions, state financial transaction tax, FTT](https://taxfoundation.org/wp-content/uploads/2020/07/net-operating-loss-finance-business-profit-e1596058372554-300x200.jpeg)
![Understanding Why Full Expensing Matters, Full expensing is also known as accelerated depreciation of capital investments, Learn more about accelerated cost recovery of investments.](https://taxfoundation.org/wp-content/uploads/2019/11/factory-manufacturing-workers-e1574781178257-300x200.jpeg)
![depreciation Capital allowances and capital cost recovery across OECD countries, 2021. Learn more about capital allowance and capital recovery.](https://taxfoundation.org/wp-content/uploads/2020/04/factory-business-worker-manufacturing-e1586276659107-300x200.jpeg)
![broadband internet, digital capital investment, tax policy, and infrastructure, telecom, 5g internet](https://taxfoundation.org/wp-content/uploads/2020/06/linkedin-In-Stream_Wide___5g-internet-telecom-digital-infrastructure-e1592409727457-300x158.jpeg)
What the Internet Can Teach Us About Capital Investment, Infrastructure, and Tax Policy
The lockdowns imposed in response to the COVID-19 pandemic induced an increase in demand for broadband internet, as work from home and other social distancing measures pushed people to spend more time online. As broadband becomes a more important piece of America’s infrastructure, it makes sense to look at tax policy that will help drive more investment and better service.
2 min read![state and local corporation tax burden property tax base and sales tax Sen. Pat Toomey Introduces Bill to Make Full Expensing Permanent](https://taxfoundation.org/wp-content/uploads/2020/02/full-expensing-factory-equipment-machinery-300x200.jpg)
Toomey Introduces Legislation to Make Bonus Depreciation Permanent and Fix the Retail Glitch
Making 100 percent bonus depreciation permanent avoids the uncertainty associated with the phaseout of a powerful pro-growth policy and would provide a cost-effective boost to long-run economic output, wages, and employment in the United States.
2 min read![President Trump's budget highlights need for pro-growth business tax provisions. Learn more about the President's budget proposal](https://taxfoundation.org/wp-content/uploads/2020/02/linkedin-In-Stream_Wide___President_Trump_Meets_with_Israeli_Prime_Minister_Benjamin_Netanyahu_49452701277-e1581537827835-300x158.jpg)
The White House Budget Highlights the Need to Extend Pro-Growth TCJA Business Tax Provisions
Full expensing, if made permanent, would be one of the most cost-effective ways to increase growth as it would produce about 4.5 times more GDP growth per dollar of revenue than making the law’s individual tax provisions permanent, according to our analysis.
3 min read![depreciation requires businesses to pay tax on income that doesn't exist capital investment](https://taxfoundation.org/wp-content/uploads/2019/05/bia-depreciation-featured-01.png-1-01-300x287.png)
Depreciation Requires Businesses to Pay Tax on Income That Doesn’t Exist
While tax rates matter to businesses, so too does the measure of income to which those tax rates apply. The corporate income tax is a tax on profits, normally defined as revenue minus costs. However, under the current tax code, businesses are unable to deduct the full cost of certain expenses—their capital investments—meaning the tax code is not neutral and actually increases the cost of investment.
3 min read![Why corporations pay no income tax. Why corporations pay no federal income taxes. State Corporate Income Tax Rates and Brackets for 2019, state corporate tax rates 2019, taxes paid by large corporations, corporations pay no income taxes](https://taxfoundation.org/wp-content/uploads/2019/02/chicago-50-e1551278565676-300x185.jpg)
Taxable Income vs. Book Income: Why Some Corporations Pay No Income Tax
Why do some companies appear to be profitable but pay little or no federal income taxes? It’s largely due to differences between book and taxable income.
4 min read![Canada May Follow the United States’ Lead on Improving Tax Depreciation for Investment](https://taxfoundation.org/wp-content/uploads/2018/11/Canada-flag-twitter-wide-300x150.jpg)
![Testimony Before the United States Joint Economic Committee](https://taxfoundation.org/wp-content/uploads/2018/09/Capitol-CROP-e1536178022935-300x141.jpg)
Testimony: The Positive Economic Growth Effects of the Tax Cuts and Jobs Act
Tax Foundation President, Scott Hodge, provides written testimony before the United States Joint Economic Committee on the economic growth effects of TCJA.
21 min read![100 percent bonus depreciation permanence offers more bang for the buck](https://taxfoundation.org/wp-content/uploads/2018/09/100-percent-bonus-depreciation-permanence-Full-Expensing-300x207.png)
Permanence for 100 Percent Bonus Depreciation Provides More Cost-Effective Growth than Permanence for Individual Provisions
In the long run, permanent full expensing produces about 4.5 times more GDP growth per dollar of revenue than making individual TCJA provisions permanent.
2 min read![Foreign Earning bills which this article evaluates for the changing Incentives in Repatriating](https://taxfoundation.org/wp-content/uploads/2018/09/AdobeStock_224303764-e1592337608248-300x100.jpeg)
The TCJA’s Expensing Provision Alleviates the Tax Code’s Bias Against Certain Investments
The Tax Cuts and Jobs Act made significant progress in improving businesses’ ability to recover the cost of making investments in the United States by enacting 100 percent bonus depreciation.
11 min read![](https://taxfoundation.org/wp-content/uploads/2017/01/us-economy-300x180.jpg)
Here’s What GDP Actually Tells Us
4 min read![Lowering the Corporate Income Tax Rate Benefits Old and New Capital](https://taxfoundation.org/wp-content/uploads/2018/08/business-investment-300x225.jpeg)
Lowering the Corporate Income Tax Rate Benefits Old and New Capital
Cutting the corporate tax rate improves the United States’ international tax competitiveness, incentives new investment and benefits both old & new capital.
3 min read