In the aftermath of Donald Trump’s election, the American Institute of CPAs has drawn up a list of tax reform priorities for the incoming administration.
The AICPA’s list includes repeal of the Alternative Minimum Tax, harmonization and consolidation of education-related tax provisions, along with simplification of the multiple retirement savings provisions in the tax code.
After meeting in Washington, D.C. last week, the AICPA’s Tax Executive Committee identified a set of key issues it believes Congress and the Trump administration should consider as part of any major tax code reform:
• Follow principles of good tax policy including equity, simplicity, minimum tax gap, transparency and economic growth and efficiency;
• Repeal the Alternative Minimum Tax for simplicity and transparency;
• Harmonize and simplify education-related tax provisions;
• Make adjustments via the tax rate schedule (and avoid phase-ins and phase-outs wherever possible) to promote transparency;
• Eliminate temporary provisions that cause tremendous uncertainty for taxpayers;
• Simplify retirement savings for both individual plans, employer-provided plans and those plans for self-employed individuals;
• Simplify or repeal the “Kiddie Tax” provisions for calculating the tax on unearned income of a child;
• Reduce tax rates for businesses operating in the corporate form as well as a rate reduction for other forms of business;
• Preserve the current availability of the cash method of accounting for tax purposes; and
• Focus on Internal Revenue Service improvement of the taxpayer and tax preparer experience by utilizing modern and secure technology, hiring and training knowledgeable employees, and seeking and utilizing stakeholder engagement.
“We commend lawmakers for signaling that tax reform will be a top priority in the next Congress,” said AICPA Tax Executive Committee chair Annette Nellen in a statement. “The CPA profession prides itself on providing objective analysis of potential changes to our tax code and we again welcome the opportunity to lend expert input as the House and Senate consider tax reform.”