<p>Two republican nominees, Herman Cain and Rick Perry, both want our complex tax system simplified. Everyone knows that the tax system is grossly complex and needs to be reformed. Accountants are paid huge healthy fees for corporate tax preparation. Tax accounting is a huge profession. </p>
<p>I asked a friend of mine, a 3rd year tax associate/manager at Deloitte if he was concerned with tax reform. My friend replied "I can always switch to audit."</p>
<p>If the tax system is simplified, countless tax accountants will have to switch to corporate accounting or auditing. This will increase the number of highly trained CPAs in the field relative to the number of available jobs, pushing salaries downward. </p>
<p>Are the post Sarbanes Oxley glory days over? Are CPAs a dying breed?</p>
<p>To sum up your post.
You are concerned because 2 presidential candidates who haven’t even won their primaries have simply indicated that our tax system should be reformed.
Even if they were to be elected, who’s to say they follow up on this.
Even if they do, what makes you think a bill will actually be passed.
Even then, these changes don’t happen immediately. </p>
<p>Once legislation is enacted, perhaps there may be cause for concern.
Until then, it’s ridiculous to make these speculations.</p>
<p>Yea I might be getting ahead of myself a bit, but its definitely not just two candidates who want tax reform. I hate to make blanked generalizations, but I’m going to make this one: Everyone knows that the US tax code is way too complex and it needs to be simplified.</p>
<p>You’re right that the tax code won’t change overnight, but career choice is a long term decision.</p>
<p>Public accounting is not though. Median shelf life is probably around 2 years.
The issue would be valid if most people who started in public were in it for the long haul but this is just not the case.</p>
<p>People have been saying this for at least 30 - 40 years, so why do you think it will suddenly happen now – or any time in the near future? At best, the politicians will tinker around with the tax code a little, but there are far too many vested interests to get a real overhaul and simplification. </p>
<p>You may be too young to remember Reagan’s Tax Reform Act of 1986, but it was a big deal when it passed. It was a compromise bill over the real reform he had originally campaigned for, but it was all he could get. And just a few years later, the lobbyists were getting new “incentives” and “exceptions” added to the tax code. (I call them “tax breaks” and “loopholes.”) </p>
<p>Tax accounting will remain a viable career for your lifetime.</p>
<p>In the real world, those “simplified” systems Cain and Perry are proposing would result in massive tax cuts for the rich and significant tax increases for the poor and middle-class. They have not the slightest chance of ever being enacted into law.</p>
<p>The real world is complex, therefore it stands to reason that a tax code which reflects the real world (rather than a conservative fantasyland) would also be complex.</p>
<p>This post has too much political motivation to be taken seriously. I assume you refer to the regressive nature of flat taxes, but there are ways to negate that aspect.</p>
<p>I don’t want to poor to bear more weight but it is ridiculous that ~50% of the country pays zero income tax.</p>
<p>Regarding CPAs, it would be fantastic for the world if the tax code was revamped. Use intelligent tax accountants for jobs that actually aid our country’s development.</p>
<p>CPAs typically have strong business sense – they will cope.</p>
<p>This concern is relevant. The most popular views of fringe candidates usually get adopted by at least one of the final candidates in the election. Plus you have to factor in the senators and representatives who will take on the cause. There’s a lot of hate out there against the complex tax system, which is still full of loop holes.</p>
<p>First of all, I would like to remind you that accounting is the baseline for every business people. It doesn’t matter if you are a CEO or gov official, you need to have knowledge about accounting. So your years of studying won’t be useless. Also, make yourself more competitive. ANy reforms mean new opportunities for people who are prepared for it!</p>