TEI, ABA, and AICPA Message to Congress: Simplify, Simplify, Simplify.

Senators Roth and Moynihan Support Joint Simplification Project

Tax Executives Institute recently joined with the American Bar Association's Section of Taxation and the American Institute of Certified Public Accountants to call for simplification of the tax laws. At a joint press conference on February 28, the heads of the three leading tax organizations called on Congress to "fundamentally change the way it considers tax legislation and tax simplification." The groups offered a wide range of recommendations for simplifying the law, including the repeal of the alternative minimum tax for individuals and corporations, enactment of rational safe harbors for estimated taxes, rationalization of the family status definitions, coordination of the education incentives, and permanent enactment of the so-called extenders package.

Noting that his company filed more than 48,000 tax returns and paid approximately $4 billion in taxes last year, TEI President Charles W. Shewbridge, III of BellSouth Corporation stated that TEI members recognize that the tax system will never be truly simple for them and their companies. "But TEI sincerely believes that the tax code can be simpler -- for individuals in particular, but also for small business, entrepreneurs, and large corporations."

Senators William V. Roth and Daniel Patrick Moynihan of the Senate Finance Committee, issued statements of support for the joint effort. "Simplification of the tax code is one of my foremost goals," Senator Roth stated. He expressed his gratitude to TEI, the ABA, and the AICPA for the time and effort they have put into the project. Senator Moynihan noted that "it is common in the last hours of a legislative session for Congress to put together a 1,200 page bill, and vote for it, even if not one of us knows what is in it." This approach has to stop, he said.

At the briefing, Mr. Shewbridge focused on three specific recommendations for reform. Explaining that the AMT was passed when Richard Nixon was president to ensure that the wealthy paid some taxes, Mr. Shewbridge pointed out that the provision now hits middle-class taxpayers who may claim only personal exemptions, state and local taxes, or other deductions. "For corporations, too," he said, "the provisions are complicated, requiring two sets of books and kicking in when companies can least afford it." It should be repealed, he added.

Mr. Shewbridge also called for permanent enactment of the extenders package. "Because...