[Sample letter for members to send their congressman]

Dear Congressman/Senator,

The time for tax reform is now, and as a member of the Pennsylvania Institute of CPAs and your constituent, I join my colleagues in encouraging Congress to address the core issues of good tax policy. Compliance hurdles for taxpayers, administrative complexity, and enforcement challenges for the IRS are primary obstacles in need of change.

The last tax reform package was passed more than 30 years ago.Through the years, our economy has changed dramatically, and the year-by-year adjustments to the Tax Reform Act of 1986 have made it challenging for business owners and entrepreneurs to strategically grow their businesses. Our current system of new regulations and extender bills that are passed annually and then expire make it difficult for taxpayers to manage their tax obligations. When cash flow is uncertain, it affects a business owner’s ability to hire and expand. America’s entrepreneurs need a tax code that is simple, transparent, and certain.

As a profession, CPAs have long advocated for a tax system that uses a consistent definition of taxable income without any phase-outs. New tax legislation should provide the best definition of taxable income or adjusted gross income by creating simple, transparent, tax rate schedules that are applied consistently across all rate brackets, eliminating additional hidden taxes. A taxpayer should understand their tax obligation and be able to develop their business strategy accordingly.

Pennsylvania CPAs, as you might expect, believe in good tax policy, and use 10 guiding principles, as outlined in our “Guiding Principles of Good Tax Policy”[link: ] when analyzing a tax law or tax change. Some of these principles include the following:

  • Equity and Fairness – Similarly situated taxpayers should be taxed similarly.
  • Effective Tax Administration – Cost to collect a tax should be kept to a minimum for both the government and the taxpayer.
  • Simplicity – The tax law should be simple so taxpayers understand the rules and can comply with them correctly and in a cost-efficient manner.
  • Neutrality – The effect of the tax law on business and personal decisions should be kept to a minimum.
  • Economic Growth and Efficiency – The tax system should not impede or reduce the productive capacity of the economy.
  • Transparency and Visibility – Taxpayers should know that a tax exists and how and when it is imposed upon them.

This framework can help policymakers build an effective roadmap to analyze proposedchanges to existing tax laws. The PICPA has more than 22,000 members who would be happy to provide you with additional insight and guidance as you evaluate and discuss the tax policy of the future.

Sincerely,

Insert name, CPA

Insert business address

PICPA member