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ADA tax reform priorities

'Simpler system, lower rates'

July 29, 2013

By Craig Palmer, ADA News staff

Washington—The Association offered a statement of priorities for a reformed tax system to Congress' tax writing committees as talks continue toward the first major rewrite of the code since 1986.

“Most dental practices are small businesses, struggling to comply with an overly complex and burdensome code,” ADA officials told the House Ways and Means and Senate Finance Committees. “They are structured, for the most part, as pass-through entities of varying types; therefore, it is important to ADA members that tax reform be comprehensive. Corporate reform alone will not be sufficient to provide relief to ADA members who file their taxes as individuals.

“As your committees continue the process of overhauling the tax code, ADA members hope you will move toward a simpler system based on lower rates (including individual tax rates) and a broader base. We believe such a system will increase economic growth and reduce compliance costs.”

The Association told Congress that ADA's highest priorities for tax code reform include:

  • Maintaining the tax advantaged status given to contributions for flexible spending accounts, as they are important health savings accounts used by patients to access needed dental benefits;
  • supporting the permanent extension to $10 million annually of the Section 179 deduction;
  • continuing to permit firms with at least $5 million in gross receipts to use existing cash method accounting;
  • eliminating the estate tax, which has a significant impact on family owned businesses, and
  • promoting small businesses through fairness for pass-through entities.

ADA's July 26 letter to the bipartisan leaders of the tax writing committees was signed by Dr. Robert A. Faiella, president, and Dr. Kathleen O'Loughlin, executive director.