I started 21st Century Taxation Blog 14 years ago today as a way to share ideas and hopefully engage discussion on how to improve our tax systems to meet principles of good tax policy and reflect the ways we live and do business today. It’s been enjoyable and I appreciate everyone who reads and comments on my posts!
A few thoughts of areas that need attention that we don’t hear enough about (some I have blogged on):
- Repeal the kiddie tax – too much complexity and not needed. When an asset is truly given to someone else, that person pays taxes on it at their own tax rate.
- Repeal the rental revenue exclusion for renting out your home for less than 15 days (§280A(g)). Not needed and mostly benefits higher income with the home by the nice golf course where some tournaments will be played.
- Fix the personal income tax to allow deductions tied to production of taxable income without any 2% of AGI limitation. This is a basic feature of a personal income tax and we have continuted to move away from it since the Tax Reform Act of 1986 meanwhile while adding special rules that are not part of a basic income tax.
- Virtual meetings and meals are likely to stay. Let’s get guidance on whether that meal delivered to your client or employee is still deductible (client one should be, but not clear about the employee; if given a gift card, likely taxable).
- Update Section 197 on amortization of intangibles to include URLs and social media assets.
And, of course, there are more areas in need of improvement.
What do you think? What Ideas do you have for tax policy reform?
Annette Nellen, CPA, Esq., is a professor in and director of San Jose State University’s graduate tax program (MST), teaching courses in tax research, accounting methods, property transactions, state taxation, employment tax, ethics, tax policy, tax reform, and high technology tax issues.
Annette is the immediate past chair of the AICPA Individual Taxation Technical Resource Panel and a current member of the Executive Committee of the Tax Section of the California Bar. Annette is a regular contributor to the AICPA Tax Insider and Corporate Taxation Insider e-newsletters. She is the author of BNA Portfolio #533, Amortization of Intangibles.
Annette has testified before the House Ways & Means Committee, Senate Finance Committee, California Assembly Revenue & Taxation Committee, and tax reform commissions and committees on various aspects of federal and state tax reform.
Prior to joining SJSU, Annette was with Ernst & Young and the IRS.
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