Resolution Reminder

Resolution Reminder
The Society Creates an Ambitious To-Do List

By John J. Kearney

Continued from the Home Page

In life, rarely can you get something for nothing. In case you have any doubts about this adage, look no further than that time-honored, eagerly anticipated and no less vexing tradition, the new year’s resolution.

Each year, this little inspirational custom elicits from us only our most noble intentions, but invariably catches us cursing under our breaths. I don’t remember anyone ever telling me they found fulfilling their new year’s resolutions nearly as fun or as easy as writing them down was. But every so often, we put in the hard work and dedication and the next thing we know, we’ve dropped those hard-to-lose 10 pounds and gotten that long-sought-after promotion.

As we head into 2005, I thought I should use this column to tell you about a few of the Society’s own new year’s resolutions that currently do and will continue to require a great deal of hard work and commitment on our part. To be completely truthful, these resolutions are more like ongoing, major initiatives, but if realized over time, they could be hugely rewarding and beneficial to the CPA profession as well as to the public we serve.

Shortly after he was reelected president, George W. Bush announced that one of his top priorities for the new administration would be tax reform. In his bid to overhaul the tax system, Bush has said he would like to create a code that has a fair tax structure, is easy to understand, and would reward risk and provide incentives for personal savings and investments.

Given the breadth of knowledge, expertise and influence that the Society’s membership has in the tax field, we believe that we can and should play a significant role in reforming a tax system that most agree is outdated and overly complicated. As you may recall, the Society has addressed this issue before, most recently in 2003 when former NYSSCPA President Alan E. Weiner led a task force that issued a 25-page report to Congress that identified seven individual tax areas of the Internal Revenue Code that were eligible for simplification. The Society is building upon these past efforts and has put together the Committee for Practical Reform of the Tax System, which will be chaired by David A. Lifson, a former NYSSCPA vice president and a well-known figure in the tax profession. David and the other committee members are preparing a white paper on tax reform that we hope to deliver to Congress before the start of the first session of the 109th Congress.

While working to modernize the tax code, the president has also pledged to strengthen Social Security to ensure that the government’s retirement program can provide benefits for generations to come. Among his ideas, Bush would like to give all participants the opportunity to diversify their investments, to invest a portion of their Social Security taxes in personal retirement accounts, and to be given the chance to invest in financial assets.

Creating a fiscally sound Social Security program, of course, is a major concern to every American. According to some reports, unless the system is reformed, Social Security will be insolvent by 2042.

At the initial behest of the Texas Society of CPAs, the NYSSCPA has recently joined other state CPA societies—currently the nine largest accounting societies—that collectively believe the obligations of the Social Security program are not achievable under the current structure. We plan to publicize this issue to the public as well as provide an in-depth analysis to Washington on the need for reform, with an outline of proposed solutions so it can occur as seamlessly and responsibly as possible. I believe together we can be instrumental in offering perspective and critical examination on this serious matter. Our body of financial knowledge and experience makes us a highly credible source of information and insight that can be of great benefit and influence to our legislators and public policy makers. The American Institute of CPAs has also agreed to partner in this initiative, which will be extended to smaller state societies as well.

This partnership is just another example of the critical role that the CPA profession plays in the business world and in our communities. However, in recent years, the enormous value that we provide on a daily basis has been overshadowed by the harmful actions of a very small group of individuals in our profession. To help us reclaim our long-held image as the most trusted advisors to businesses and individuals, the AICPA, in cooperation with state societies, has launched the CPA Ambassador Program. The Society is pleased to be a part of this program, which specially trains individual CPAs to bring more recognition and appreciation to the profession.

In conjunction with this mission, the AICPA has also launched a financial literacy campaign, known as 360 Degrees of Financial Literacy, that serves to improve the public’s financial acumen. The Society supports this campaign and believes it is important to ensuring that people are adequately preparing for their future financial needs. I encourage you as CPAs to speak to your clients and your communities about the significance of financial literacy.

Finally, I would like to briefly follow up on my column last month. In that President’s Commentary, I told you that we are engaged in a media campaign with editorial boards throughout the state to help create public awareness of New York’s outdated accountancy law and further demonstrate to the state legislature the need for reform. Well, we are sticking to our word, and in the last month we have met with the editorial boards of the Gannet-owned Westchester Journal News and the Buffalo News. In the coming weeks, we will speak to even more media outlets to make it abundantly clear that modernizing New York’s accounting statute should be a top priority of the Senate and Assembly next year.

As you can see, these are ambitious initiatives. While the Society believes they will be very helpful to affecting significant change on a local and national level, it harbors no illusions about the challenges that lie ahead and realizes that it won’t get something for nothing. But as the NYSSCPA president, I can tell you that we have placed ourselves on the path to meaningful progress and are making promising headway.

Have a happy and safe holiday season, and good luck with your new year’s resolutions—let them know who’s calling the shots.