Tax Reform Update

Analyzing Tax Reform Proposals

It has been 30 years since the last major federal tax overhaul. The complexity and uncertainty of the current tax code creates confusion and unnecessary difficulty when tax planning and identifying tax obligations. In addition, a modernized tax code needs to address the digital economy to reflect how we do business today.

The resources below include an outline for a fair and transparent tax code; contact info on how to notify Pennsylvania’s congressional delegation on the profession’s position; and updates on ongoing tax discussions.

Explaining Tax Reform

AICPA prepared these PowerPoint presentations to help CPAs explain tax reform to

Latest on CPA Now

J A Quick Look at the New Tax Cuts

A new tax reduction bill was signed into law on Dec. 22, 2017. Here is a quick overview of some of the details.

J Tax Reform Impact Varies Greatly

We don’t yet have a clear picture of what the tax law will look like in 2018. While the U.S. House of Representatives passed its version of tax reform (Tax Cuts and Jobs Act), the Senate’s version of the bill (yet to be voted on at the time this is being written) includes significant differences.

J Just the Facts on Tax Reform: But What Is a “Fact”?

Every day seems to bring new details and information concerning federal tax reform. Both the House of Representatives and the Senate have recently issued their tax reform plans. There are significant differences between the two, and the process of reconciling the differences has begun … and so has the lobbying.

Guiding Principles of Good Tax Policy

When evaluating changes to tax policy, proposals should include an analysis of their impact on existing tax laws. The AICPA Fundamental Tax Reform Task Force, along with several other technical and policy committees, developed The Guiding Principles of Good Tax Policy: A Framework for Evaluating Tax Proposals.

The PICPA supports these principles for the U.S. tax code, and an analysis of any proposals should weigh these guidelines:

  • Equity and Fairness – Similarly situated taxpayers should be taxed similarly.
  • Certainty – Tax rules should specify when a tax is to be paid, how it is to be paid, and how the amount to be paid is to be determined.
  • Convenience of Payment – A tax should be due at a time or in a manner that is most likely to be convenient for the taxpayer.
  • Economy of Collection – The costs to collect a tax should be kept to a minimum for both the government and taxpayers.
  • Simplicity – Tax laws should be simple so taxpayers understand the rules and can comply with them correctly and in a cost-efficient manner.
  • Neutrality – The effect of the tax law on a taxpayer’s decision as to how to carry out a transaction or whether to engage in a transaction should be kept to a minimum.
  • Economic Growth and Efficiency – The tax system should not impede or reduce the productive capacity of the economy.
  • Transparency and Visibility – Taxpayers should know that a tax exists and how and when it is imposed upon them and others.
  • Minimum Tax Gap – A tax should be structured to minimize noncompliance.
  • Appropriate Government Revenues – The tax system should enable the government to determine how much tax revenue will likely be collected and when.
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Contact Resources and Issue Updates

These resources have been developed by PICPA members to keep CPAs informed as tax proposals work their way through the legislative process, to encourage outreach to the Pennsylvania delegation regarding tax reform, and to highlight Pennsylvania-specific concerns/issues raised by changes to federal tax regulations.

Media Coverage

AICPA Resources

Other Resources

Pennsylvania CPAs Weigh in on the Need for Tax Reform

AICPA's Melissa Labant Shares an Overview of Tax Reform Post-Senate Passage

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