U.S. Rep. Blaine Luetkemeyer (MO-3) has co-authored a bipartisan letter to the House Ways and Means Committee commending its members for their hard-work and dedication to tackling much needed tax reform and urging them to consider the negative effects of proposed changes that would limit accounting flexibility for small businesses and farmers across America.  

“Cash accounting is critical for small businesses and our nation’s farmers and ranchers to manage their yearly tax burden,” Luetkemeyer said. “America is long overdue for a simpler and fairer tax code and I applaud the House Ways and Means Committee for taking on the task. It is very important to consider the proposed change of limiting the use of cash accounting and its effect it will have on small businesses that drive our local economies.”

While the proposed Tax Reform Act of 2013 would expand the use of cash accounting from businesses with gross receipts that do not exceed $5 million to those with gross receipts that do not exceed $10 million, it would also limit the use of cash accounting for certain pass-through entities, farmers, and personal service corporations that have historically paid their taxes using the simple and appropriate manner of cash accounting. Pass-through entities account for more than 90 percent of all business entities in the United States.

NOTE: Attached is the letter that Luetkemeyer and 70 other members of the House sent to the House Ways and Means Committee.