Simplification isn't simple: government, private sector focus on ways to fix the code.

• Position: Recent Activities

Approximately 125 people gathered on Capitol Hill in December to discuss ways in which to simplify the tax law. Representatives from congressional offices, the tax-writing committees, the Treasury Department, and the Internal Revenue Service joined tax executives and practitioners at the December 4 joint tax law simplification conference in the Cannon House Office Building sponsored by Tax Executives Institute, the American Institute of Certified Accountants, and the American Bar Association's Tax Section. The four panels focused on, and expanded upon, the simplification study issued earlier this year by the staff of the Joint Committee on Taxation.

In his comments opening the program, TEI President Bob Ashby noted that the Institute's 5,300 members "know that the tax system will never be truly simple for them and their companies. But we sincerely believe that the tax code can be simpler--for individuals, small business, entrepreneurs, and large corporations." He explained that the joint conference was "an attempt to move us forward by bringing a greater focus on the need for simplification of the tax law. We hope that the discussions will serve as a spring board for action."

Lindy Paull, chief of staff for the Joint Committee on Taxation, agreed that a constituency for simplification is needed and expressed hope that the conference would help in achieving that goal. C. Eugene Steuerle of the Urban Institute--who provided the keynote address--noted that government is not in the business of simplifying itself. Mr. Steuerle praised the three organizations for seeking simplification for the public good, noting that dealing with complexity is what the groups' members get paid to do. Studies such as the Joint Committee staff's recent report do have an effect, he stated. He suggested that one way of achieving simplification is to hold a day-long hearing on amendments to the tax law before they are passed. These types of processes have to be put in place if we are to succeed, Mr. Steuerle added.

Later that day, House Ways and Means Committee Chairman Bill Thomas urged the participants to get behind the elimination of the corporate alternative minimum tax (AMT), noting that the House of Representatives has provided for repeal in its economic stimulus legislation. Congressman Thomas added that he believes the Ways and Means Committee is appropriately named because its job is "to find ways of separating people from their means." You can help us...