The Tax Cuts and Jobs Act makes significant progress toward its goal of reducing taxes for American families and businesses, simplifying the tax code, and encouraging a more competitive tax environment for job creators.
However, among the many details that the conference committee had to address is a “first in, first out,” (or FIFO) provision whose disposition remains unknown as of Wednesday afternoon. FIFO was contained in the Senate’s version of the bill, and does not reflect the priorities of simplicity and competition. Rather, it complicates things for many average Americans investing or saving for retirement, reduces choice for individual retail investors, raises the taxes on the returns on savings, and further widens the disparity between professional investors and average retirement savers.
