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Institute continues simplification campaign.

The American Institute of CPAs is keeping up its fight against proposals that would further complicate the tax code. Earlier this year, the Institute testified before the House Ways and Means Committee (see "Remember Simplification, Institute Tells Congress," JofA, May 93, page 31). This round, the Senate was the target.

"It is critical Congress not lose sight of the need for continuous efforts toward a simpler tax law," Harvey L. Coustan, chairperson of the AICPA tax executive committee, told the Senate Finance Committee during hearings on President Clinton's proposals for public investment and deficit reduction.

Coustan said a simpler tax system would first define the tax base more directly and then raise revenue through rate adjustments--something political and other considerations seem not to have allowed in the past several years.

A balanced approach. "We're trying to balance equity and simplicity," Janice M. Johnson, chairperson of the AICPA tax simplification committee, told the Journal. Because the need for fairness rules out radical solutions such as an across-the-board flat tax, "practitioners needn't fear the tax system will ever be made so simple as to put them out of business!"

She also noted that among the most significant factors contributing to complexity are congressional deals cut in the middle of the night at negotiating sessions. "We'd like to see stops built into the system to require hearings and public discussion of these provisions before they actually make it into law," she said.
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Title Annotation:AICPA
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Jul 1, 1993
Previous Article:FASB names two from commerce and industry.
Next Article:Tax court strikes down home-office deduction under Soliman.

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