Grant Thornton Teams Up With US Bankers To Produce Tax Simplification Plan

by Leroy Baker, Tax-News.com, New York

29 January 2003

In a 50-page report released on Friday, accounting firm Grant Thornton and the Independent Community Bankers of America (ICBA) proposed 10 measures designed to simplify the US tax code and offer greater advantages to the country's small businesses and savers.

Recommendations contained within the 'Community Bank Tax Relief and Simplification Options' document included: the creation of a 'Universal Freedom' savings account designed to extend tax-advantaged saving to more US citizens, the provision of tax relief on individual interest and dividend income, the improvement of small business expensing, the provision of tax relief for long-term deposits, a permanent repeal of the estate tax, the provision of tax relief to boost small business lending, and the introduction of new ways to allow local governments to access cost-efficient funding.

The Grant Thornton-ICBA study also advocated the improvement of retirement and education provisions, the liberalization of S corporation rules, and the creation of a national limited liability company bank charter.

Speaking following the release of the report, Douglas L. McClure, chairman of ICBA's Tax Committee explained that:

'Simply stated, this ICBA study provides a broad menu of tax policy options where consumers and small businesses of all kinds can be spared onerous tax burden compliance costs with a few simple tax code changes. Adopting these recommendations will help preserve the financial underpinning of millions of consumers, family owned businesses, family farms, local merchants and small manufacturers throughout America.'

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