CPA group makes tax-reform recommendations

CPA group makes tax-reform recommendations
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The American Institute of CPAs (AICPA) on Tuesday outlined its priorities for tax-reform legislation, including lowering tax rates for businesses and simplifying education-related tax provisions.

The release of the group's tax recommendations comes as Republicans are pushing to pass legislation that overhauls the tax code next year. Republicans believe that 2017 is an ideal time to pass a tax-reform bill because they will control both houses of Congress as well as the White House.

“We commend lawmakers for signaling that tax reform will be a top priority in the next Congress,” Annette Nellen, chair of the AICPA Tax Executive Committee, said in a news release. “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."

The AICPA said that tax reform should "follow principles of good tax policy including equity, simplicity, minimum tax gap, transparency and economic growth and efficiency."

The group said that lawmakers should consider several issues while working on legislation, including lowering tax rates for both corporations and other types of businesses, repealing the alternative minimum tax, simplifying retirement-savings provisions and improving the experience of dealing with the IRS for taxpayers and tax preparers.

The AICPA's recommendations are in line with ideas described in the House Republican's "Better Way" tax blueprint. The blueprint would lower the corporate tax rate to 20 percent and the rate for pass-through businesses to 25 percent. It would also repeal the alternative minimum tax and simplify higher education tax benefits, and it states that the House Ways and Means Committee will work to consolidate retirement-savings provisions.