Academic journal article Journal of Accountancy

AICPA Gives Additional Ways and Means Testimony

Academic journal article Journal of Accountancy

AICPA Gives Additional Ways and Means Testimony

Article excerpt

The American Institute of CPAs tax division provided the House Ways and Means Committee with additional comments on the Clinton administration's revenue proposals, supplementing its earlier testimony (see "Remember Simplification, Institute Tells Congress," JofA, May93, page 31).

The tax division expressed its opposition to the following proposals. Some of the tax division's objections to each are summarized below:

* The incremental investment tax credit will add complexity to the tax code while benefiting taxpayers only nominally.

* Higher tax rates on estates and trusts are not only unfair but will produce few (if any) additional revenues.

* Denying a deduction for "executive" compensation exceeding $1 million a year except when compensation payments are linked to "productivity" is arbitrary. The issue of "unreasonable" compensation should be addressed by shareholders and boards of directors.

* Reducing the deductible portion of business meals and entertainment expenses to 50% and disallowing a deduction for club dues are unfair because businesses do not run on a 9-to-5 schedule. A luncheon club is likely to be used for bona fide business purposes over 90% of the time, yet dues are 100% disallowed under the proposal.

* Disallowing deductions for moving expenses related to meals and real estate when moving from an old to a new home does not take into account the fact that such a move requires extraordinary costs in the form of lodging, meals and transportation.

* Increasing the recovery period for depreciation of nonresidential real property would extend the recovery period for nonresidential real property to 36 years. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.