Tax Code Simplification: Is It Time for Corporate Pressure?
Tax Code Simplification: Is It Time for Corporate Pressure?
Tax reform has been a topic of debate in Congress and among taxpayers for many years. Reform action has been taken under various administrations in an attempt to satisfy not only the taxpaying public but the special interests that may be affected. However, many corporate chief financial officers (CFO) are now advocating simplification over total reform of the tax code. Simplifying tax code and associated process and regulations has been determined to be a key factor for corporations to compete in today’s highly competitive global economy. The question is how corporations apply pressure across congress in order to obtain this goal. Another key element is gaining consensus among corporate entities to recognize the savings and chance to enhance competitiveness merely by simplifying tax code. It may be time for corporate America to abandon past practices of reform focused on decreasing taxes and now focus efforts on simplification solely based on the implementation of International Financial Reporting Standards (IFRS) and adoption of international generally accepted accounting principles (GAAP) as proposed by the International Accounting Standards Board (IASB). Shifting focus from reform to simplification will prove to be a challenge, although, the time has come for action and pressure to be applied to both parties of Congress in order to keep United States (US) corporations competitive and able to reduce costs and reverse the negative impact of US tax regulations in the international money markets. Shareholders and stake-holders at every level should back and support their corporate partners in every way to apply pressure in the coming months to achieve the needed changes for tax code simplification.
Corporate Impact and Support
Corporations are faced with many decisions under the current internal revenue code (IRC),...