how will proposed tax reforms impact businesses and tax professionals in the 2024 election cycle?
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accounting arc
with liz mason, byron patrick, and donny shimamoto
center for accounting transformation
the 2024 election is poised to bring significant changes to tax policy, and the accounting profession is bracing for the potential impact.
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as political candidates propose tax reforms, professionals in the field must be prepared to understand and communicate the implications of these changes to their clients.
the latest episode of accounting arc brings to light the challenges and responsibilities that cpas face in navigating the intersection of politics and tax policy.
in the episode, liz mason, founder and ceo of high rock accounting, shares her personal experiences working in tax through years of policy changes. “the tax code seems to overhaul every two years,” she says. “it’s disruptive for business and the economy.” for many accountants, keeping up with the ever-shifting landscape of tax reform has become a regular part of the job.
tax legislation has long been a battleground for political candidates. every election season, new promises emerge to simplify, overhaul, or cut taxes, and it’s not uncommon for candidates to tout policies that may be unworkable in practice. byron patrick, cpa.citp, cgma, who has been involved in tax advocacy for years, describes a moment of conflict when his personal beliefs didn’t align with the position of the maryland association of cpas. “it’s about representing the profession, even when your views differ,” says patrick, ceo for verifyiq and vice president of client success at the b3 method® institute.
as accountants, the responsibility to interpret tax law and policies goes beyond individual beliefs. mason echoes this sentiment, explaining that professionals must navigate not only their personal stances but also those of their clients. “there are three buckets – the firm’s view, the client’s view, and your personal view,” she explains. “it’s critical to balance them.”
despite the political rhetoric, tax professionals often find themselves at the heart of shaping policies that work for both individuals and businesses. donny shimamoto, cpa.citp, cgma, a prominent figure in accounting, emphasizes the importance of advocacy in simplifying tax administration. “what really stands out is our role in making sense of a complicated world,” says shimamoto, founder and managing director of intraprisetechknowlogies llc and founder and inspiration architect of the center for accounting transformation. he describes his time advocating on capitol hill as a formative experience in realizing the importance of professional influence in policymaking.
tax professionals, shimamoto notes, have a duty to not only understand these policies themselves but also to educate others. “we have the knowledge and the expertise to interpret these changes and communicate them to our clients. that’s what sets us apart.”
with the 2024 election season already heating up, tax professionals will need to stay alert for key policy proposals from candidates. sales tax, economic nexus, and corporate tax reform are just some of the issues being discussed. mason urges her peers to remain proactive: “clients will call, and they’ll want to know how these policies affect them.”
for accountants, this means not only understanding the laws as they change but also interpreting the larger political environment. shimamoto puts it simply: “part of our job is cutting through the political noise and focusing on the facts.”
as the 2024 election approaches, tax professionals must prepare for the potential transformations in policy, while balancing personal, professional, and client perspectives.
top 10 takeaways:
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- political changes in tax policy happen frequently, requiring tax professionals to stay informed.
- the 2024 election is expected to bring new tax reforms with significant implications for businesses.
- cpas must balance personal beliefs with what’s best for clients and their firms.
- advocacy plays a critical role in shaping tax policies that work for both businesses and individuals.
- cpas have a civic duty to understand tax law and educate clients about its effects.
- candidate promises regarding tax reform may not always be feasible or beneficial.
- sales tax on services remains a hot topic, and there are varied opinions on its practicality.
- simplifying administrative tax procedures benefits both businesses and taxpayers.
- the tax profession is uniquely equipped to navigate political complexities and advise clients.
- as politics becomes more intertwined with tax policy, professionals must remain adaptable.