The complexity and uncertainty surrounding the tax code affects tax practitioners and taxpayers alike. The code has reached nearly 4 million words and, according to one estimate, 4,107 changes to the tax code have been made since 2004, an average of more than one a day.
The AICPA is at the forefront of the efforts to shape a better tax system that benefits taxpayers and the accounting profession and meets our core principles for fairness, transparency and simplicity.
Based on Guiding Principles for Good Tax Policy: Framework for Evaluating Tax Proposals, the AICPA advocates for many changes, such as:
- Simplifying the income tax rate structure
- Consolidating education tax incentives
- Eliminating temporary provisions that cause tremendous uncertainty for taxpayers
- Retaining the cash method basis of accounting
- Making the tax system (including retirement plan administration) friendlier for small businesses