Washington (March 9, 2004) -- The American Institute of CPAs joined with other long-time proponents of tax simplification in praising the Bush administration for proposing a series of measures to streamline the Federal tax code over the next few years.
In a letter to Treasury Secretary John W. Snow, representatives from the AICPA’s Tax Executive Committee, the American Bar Association’s Section on Taxation, and the Tax Executives Institute praised a number of provisions in the Administration’s 2005 Federal budget plan that they said address “the urgent need for major simplification” of the nation’s tax laws.
“We especially welcome the proposals to simplify the tax laws for families, including the proposals to adopt a uniform definition of qualifying child for purposes of various child-based benefits,” the three groups told Snow. They also endorsed budget proposals to eliminate the income-related phase-outs for the adoption tax credit and exclusion, to eliminate the household maintenance test for head-of-household filing status, and to simplify the complex computational and eligibility requirements for the earned income tax credit and child tax credit.
“We also appreciate the administration’s willingness to seek simplification of the retirement savings and education incentives regimes, which are rife with complexity,” they said.
The three organizations singled out the administration’s plan to explore “a long-term solution” to the alternative minimum tax dilemma as “perhaps the most significant legislative item contained in the revenue proposals.”
“The appropriate committees of our respective organizations stand ready to provide technical assistance with transitional and other implementation issues raised by any proposals to address this pressing problem,” they told the Treasury Secretary.
-- Ken Rankin
