AICPA, ABA, TEI Praise Tax Simplification Provisions for 2005 Budget
AICPA, ABA, TEI Praise Tax Simplification Provisions for 2005 Budget
- AuthorsZarzar, Robert A.Shaw, Richard A.Rossi, Raymond G.
- Institutional AuthorsAmerican Institute of Certified Public AccountantsAmerican Bar AssociationTax Executives Institute
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-4027 (3 original pages)
- Tax Analysts Electronic Citation2004 TNT 39-15
From: Meadow, Benita
Sent: Tuesday, February 24, 2004 3:45 PM
To: 'deborah.grubbs'
Cc: 'Jenner, Gregory'; 'Hubbard, Helen'; 'Prater, Mark';
'Sullivan, Russ'; 'Winters, Bob'; 'Buckley, John'; 'Yin, George'
Subject: Re: 2005 Budget Proposals: Tax Simplification
Importance: High
[1] The attached letter is regarding the 2005 Budget Proposals on Tax Simplification. This letter reflects the jointly-held views from the ABA Section of Taxation, American Institute of Certified Public Accountants, and the Tax Executives Institute.
Executive Administrative Assistant
American Bar Association
Section of Taxation
Washington, DC
Administration's 2005 Budget
Secretary of the Treasury
Suite 3330
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
Re: 2005 Budget Proposals: Tax Simplification
Dear Secretary Snow:
The American Institute of Certified Public Accountants, the American Bar Association Section of Taxation,* and the Tax Executives Institute have been working together over the past few years to sensitize the public, the Administration, and the Congress to the urgent need for major simplification of the tax laws. We therefore are pleased that the Administration has included several specific simplification provisions in the 2005 revenue proposals. This letter reflects our jointly-held views only on the simplification aspects of the Administration's proposals.
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, 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. As you know, these rules are some of the more complex provisions of the Internal Revenue Code, and the Administration's proposals will provide much needed relief to the families who benefit from these provisions. We also appreciate the Administration's willingness to seek simplification of the retirement savings and education incentives regimes, which also are rife with complexity.
Perhaps the most significant legislative item contained in the revenue proposals was not a proposal, but a statement that the Treasury Department has been directed to study the alternative minimum tax ("AMT") with the goal of producing a long-term solution. The widely recognized and long acknowledged gravity of the AMT problem warrants an immediate, permanent solution, and we encourage you to complete this study this year. 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.
In addition to the various legislative proposals announced with the Administration's budget, we understand that the Treasury Department is reviewing various regulatory and administrative rules and procedures that can be simplified. Although such efforts are never easy, we agree that it is necessary and we are prepared to assist the Treasury Department and the Internal Revenue Service in these important efforts.
We recognize that revenue and other pressures may impede progress on wider simplification reforms. However, the complexity of the tax system imposes substantial economic costs, as well as fostering non-compliance. It is therefore imperative that all involved in the tax-writing process give much greater priority to simplification when deciding whether to advance a public policy goal through tax incentives rather than through direct spending programs.
It is often said that tax simplification has no constituency. Our three organizations pledge our best efforts to change that perception. Our group has previously submitted recommendations concerning both individual and business tax simplification, and we stand ready to assist the Administration in implementing these and other recommendations. We applaud the efforts of the Administration in helping to focus public attention on the need for simplification and urge you to continue identifying and pursuing new opportunities for simplifying the Internal Revenue Code.
Robert A. Zarzar
Chair
AICPA Tax Executive Committee
Richard A. Shaw
Chair
ABA Section of Taxation
Raymond Rossi
International President
Tax Executives Institute, Inc.
Helen M. Hubbard, Tax Legislative Counsel, Department of Treasury
Mark A. Prater, Republican Chief Tax Counsel, Senate Finance Committee Staff
Russell Sullivan, Democratic Chief Tax Counsel, Senate Finance Committee Staff
Bob Winters, Republican Chief Tax Counsel, House Ways & Means Committee Staff
John Buckley, Democratic Chief Counsel, House Ways & Means Committee Staff
George Yin, Chief of Staff, Joint Committee on Taxation
FOOTNOTE
*The positions expressed in this letter are those of the American Bar Association Section of Taxation and, except as noted below, have not been approved by the House of Delegates or the Board of Governors of the American Bar Association. Accordingly, they should not be construed as representing the policy of the Association. The positions expressed on phase-outs and uniform definition of a child do represent the policy of the Association.
END OF FOOTNOTE
- AuthorsZarzar, Robert A.Shaw, Richard A.Rossi, Raymond G.
- Institutional AuthorsAmerican Institute of Certified Public AccountantsAmerican Bar AssociationTax Executives Institute
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-4027 (3 original pages)
- Tax Analysts Electronic Citation2004 TNT 39-15