Committees eye future: plus: Tax reform and boe troubles.

• Author: Fox, Jason
• Position: Capitol Beat

In recent weeks, the CalCPA Government Relations and Taxation committees met to discuss important public policy and tax issues facing the CPA profession.

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The Government Relations Committee discussed legislation and other regulatory proposals being considered in the public policy arena, including:

* The growing possibility of significant federal and state tax changes;

* Efforts to increase grassroots activities; and

* A national perspective from the AICPA federal affairs team.

The committee also heard from special guests Assemblyman Sebastian Ridley-Thomas, chair of the Assembly Revenue and Taxation Committee, and Assemblyman Bill Brough, vice chair of the Assembly Revenue and Taxation Committee. The legislative leaders shared their perspective on important issues they're working on and how CalCPA can be a resource as they look to address California's challenges.

The Committee on Taxation met jointly with (he CalCPA Estate Planning Committee to discuss the most recent tax season, hear updates from committee liaisons with tax regulators and discuss hot issues, such as marijuana, AICPA activities and how the committee can broaden the distribution of the information and content developed by committee.

Tax Reform Talk Heating Up

Earlier this month, the Trump administration released a blueprint as to what it would like to see in broad federal tax reform. The proposal included reducing the corporate tax, eliminating a number of deductions, and simplifying and reducing the amount of tax brackets into three: 10 percent, 25 percent and 35 percent. The administration and Congress also have revived the health care debate that will impact the way health care is covered, and will greatly impact tax policy and state budgets.

What does this mean for California? While most state leaders are taking a wait and see approach until federal changes are sorted out, any significant changes could drive further interest in California to pursue a tax reform package on the state level to reflect, or counter, federal changes.

California leaders have called for a revamp of the state's lax code to more accurately reflect the modernization of California's economy and its industries. These efforts include calls for a more reliable revenue source that helps smooth out the drastic revenue spikes that have complicated the budgetary process.

Additionally, some, including State Controller Betty Yee, believe that California is headed toward an economic...