irk Van Dongen, presi-
dent and CEO of the
National Association of
(NAW), visited PEI headquarters
April 24 to discuss the nearly $6
trillion distribution economy,
taxes and coalitions.
PEI, an NAW member
since 1983, participates in
NAW efforts that affect PEI members. NAW is composed
of wholesaler-distributors and a federation of international,
national, regional, state and local associations and their
member ;rms — more than 30,000 employers in every state
and the District of Columbia. Rick Long, executive vice
president and general counsel of PEI, accepted appointment to the NAW board of directors in 2019 and was named
chairman-elect of the NAW Association Executives Council.
“A lot of our members are what are called pass-through
entities — Subchapter S or LLCs — which means that the
owners pay tax on their individual returns, in essence, and
NAW is heavily involved in making sure that those types of
entities are protected,” Long said.
These pass-through entities historically have paid higher
tax rates than C corporations. An NAW-led coalition of
businesses and trade asso-
ciations, including PEI,
achieved steps toward tax
parity in the 2017 Tax Cuts
and Jobs Act.
“I would guess that as
many;as 80% of our members
are pass-through entities,”
Long said, “but the provision
is set to sunset in 2025. A
new bill to make the provision permanent has now been in-
troduced in Congress, and NAW is again leading the private
sector coalition in support of the bill. PEI has signed on to
PEI does not participate in;PACs, but the association is
active in NAW coalitions that affect PEI members. NAW
assembles several coalitions to promote and protect key tax
bene;ts, economic policies and employment regulations.
Coalitions representing PEI interests include:
The LIFO (Last-In, First-Out) Coalition: persuades
Congress not to repeal LIFO. This accounting method raises
businesses’ cost of goods sold and lowers taxable income.
Said another way, LIFO cuts PEI members’ tax bills. After
years of work, the coalition accomplished LIFO accounting
legislation. Website: savelifo.org
PEI Editor in Chief Kristen Wright and NAW President and CEO Dirk Van
Dongen discuss his meetings with President Ronald Reagan.
By Kristen Wright