Thursday, August 4, 2016
Tax reform - looking beyond a rate reduction
For the past few years, tax reform discussions have focused on broadening the base and lowering the rate. We are now hearing a bit more about consumption taxes including in the form of a credit invoice VAT like most of the world uses (in addition to their income taxes).
I like to offer reminders of additional tasks and discussions that should be taking place in addition to the above. For example, how about identifying a goal for tax reform? That will help in knowing if you're getting there. Also, it is important for the taxing jurisdiction to know its economic, societal and environmental goals to be sure at least that the tax system is not impeding reaching those goals.
I've got a short article in the AICPA Tax Adviser (July 2016) with a few suggestions for looking beyond a lower tax rate. I hope you'll take a look.
What do you think?