Magazine article The CPA Journal

Prospects for '95 Tax Legislation Still Good

Magazine article The CPA Journal

Prospects for '95 Tax Legislation Still Good

Article excerpt

Despite a notable slowing of pace in Congress following the first-hundred-days marathon in the House of Representatives, the prospects for tax legislation this year still seem likely. The legislation could arise from the portion of the "Contract with America" tax provisions that remains following the conclusion of the budget reconciliation process. Or, tax legislation will take the form of a miscellaneous tax bill resulting from the process begun by Ways and Means Chair Archer.

On the other hand, systemic tax reform--flat tax, sales tax, etc.--is further off. Estimates for the timing of systemic tax reform given to the AICPA Tax Division vary from one to two years (House staff) to four to five years (Senate staff).

The House and Senate have compromised on the tax-cut issue. The House was pushing for a $350 billion tax cut package early in the seven-year march to a balanced budget. The Senate, on the other hand, was willing to go along with $250 billion of cuts four years into the future, contingent on the nation's ability to meet budget goals. The compromise was for $245 billion of current tax cuts now. The House is exploring different ways to approach this trimming of its tax largesse. One approach is to ratably scale back each of the items contained in H. …

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