ATR Opposes Shift to Accrual Basis Accounting in Tax System
Americans for Tax Reform today sent a letter to Senate Finance Committee Chairman Max Baucus (D-Mont.) and House Ways and Means Committee Chairman Dave Camp (R-Mich.) expressing opposition to moving toward "accrual" based accounting in our tax system.
Below is an excerpt:
I write today to express concern with a provision which has appeared in each of your drafts for business tax reform. The “cash to accrual” proposal would result in a substantial tax increase for tens of thousands of American business owners and significantly increase their recordkeeping burdens--not for any benefit to our economy and job creation, but for the sole purpose of paying for tax reform...this accounting shift does not advance the goals of tax reform, in fact, it is counterproductive. It does not make the system simpler, but rather more complex. It does not promote fairness, certainty or consistency. It will be a drag on economic growth and job creation. It does not take away anything which is unanimously considered a loophole or preference item. Thousands of American businesses and owners would pay a significant price to accomplish nothing. This proposal should be dropped if we are looking for successful small- and medium-sized businesses to remain job creators in a post-tax reform world.