Page 47 - May-June-guide BI

CHANGES ARE COMING
VETERAN POLITICAL OBSERVERS BELIEVE CONDITIONS ARE FAVORABLE FOR SWEEPING FEDERAL TAX REFORM LEGISLATION.
The most telling portent in this alignment of stars is the control
republicans won over both houses of congress and the White House during 2016’s national election. Each of the last two times the GOP held majorities in congress, and the party’s candidate became president, U.S. tax code underwent significant changes. Congress and the new president have expressed a desire to produce tax revision legislation quickly.
Any change to the country’s internal revenue code promises to affect
taxpayer and tax professional alike, so the Michigan Association of Certified Public Accountants (MICPA) is monitoring the progress of all relevant
legislative activity. Stay up-to-date as the process unfolds in Washington by accessing the association’s collection of content and resources at www.micpa. org/taxreform and our weekly email newsletter (E-News).
And the process might unfold rather quickly if history is prologue. Consider
the rapid pace in which tax cuts were formulated and implemented under similar circumstances in 2001 and 2003. The Economic Growth and Tax Relief Reconciliation Act was enacted just 23 days after introduction in the House. Two years later, the Jobs and Growth Tax Relief Reconciliation Act followed in May 2003. Both tax cuts were passed by a republican controlled congress and signed by republican President George W. Bush.
Two decades earlier, the Kemp/Roth tax cut was enacted just 21 days after introduction. Ronald Reagan was the president then.
What are some of the changes that might occur? Based on recent congressional discussion, there appears to be an appetite for reducing the number of tax brackets and itemized deductions while increasing the size of standard deductions. Businesses might see lowered corporate rates and support for a repatriation holiday. There is even talk of repealing the estate and gift taxes.
Whatever the outcome of this process, MICPA will watch it closely, providing status reports to membership and adapting continuing professional education courses for tax preparation professionals so they can provide the most complete and reliable services to clients.
Stay tuned at www.micpa.org/taxreform.
MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS
| MAY – JUNE 2017
855.594.4273 | MICPA.org
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855.594.4273 | MICPA.org
47
MICPA