AICPA Opposes Tax Base Expansion

The American Institute of Certified Public Accountants (AICPA) has submitted comments to Congress opposing proposals made by the Joint Tax Committee that would expand the self-employment tax base as part of an effort to close the tax gap.

The AICPA said in its cover letter, “We believe the JCT proposals are fundamentally wrong in that any abuse with the current system is not related to the SECA/FICA tax base and therefore such tax base should not be expanded to combat the tax gap. The tax gap represents an underpayment by taxpayers who are not complying with existing law. The tax gap is not closed one penny by expanding the tax base and tapping new sources of revenue. Closing the gap should focus on just that. Policy decisions must be made in a much more public forum without the cover of closing the tax gap – which is clearly and correctly perceived by the public to be solely an enforcement issue.”

The AICPA also said it believes “increasing the use of the estimated payment system is a far inferior solution than the opposite solution of increasing the use of the more perfect withholding system.”

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