CalCPA Engagement as Voice of the Profession
CalCPA ’ s impact was evident throughout the legislative process as we worked to represent the interests of our members and California ’ s CPAs on key issues . continues to reiterate the challenges a tax on services would have for taxpayers , practitioners , and the broader economy . These are wins for Californians and businesses , as they help keep the tax system reasonable and efficient .
CapitolBeat by Jason Fox
Legislative Recap
CalCPA Engagement as Voice of the Profession
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At 2024 moves along , CalCPA ’ s impact was evident throughout the legislative process as we worked to represent the interests of our members and California ’ s CPAs on key issues . From setting the slate in January to weighing in with key insights , and from ramping up efforts to stall bad policies to shepherding key policy goals over the finish line , here are some of the highlights of CalCPA ’ s actions .
Re-Upping the CBA This year , the California Board of Accountancy was under legislative review to assess its effectiveness in regulating CPAs and protecting the public . CalCPA was actively involved in ensuring a smooth process that addressed legislative questions with the proper context and background .
We also worked to ensure that necessary changes and updates to the Accountancy Act appropriately balanced solid oversight with the practical realities of CPA work . The passage of AB 3251 reinforces the importance of the CBA ’ s role and reflects CalCPA ’ s ongoing support for an effective and efficient regulatory framework .
Supporting the CPA Pipeline A top priority for CalCPA this year has been addressing challenges that stem from a CPA pipeline shortage . To that end , CalCPA started working with stakeholders to explore changes to licensing requirements , both in
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California and nationwide , that could give individuals more flexibility as they enter the profession .
While much of this work took place behind the scenes through discussions with profession and regulatory stakeholders , several proposals are open for public comment from across the profession . CalCPA sees these efforts as essential to creating more opportunities for future CPAs to join and succeed in the field , setting the stage for continued progress next year .
Financial Literacy for High School Students California made a big step forward with AB 2927 , a new law that requires high
school students to take personal finance courses to graduate . CalCPA has been a strong advocate for this change , recognizing how important it is for young people to gain essential money management skills early .
The goal is to give students a strong foundation in personal finance , setting them up for informed financial decisions later in life . Further , this opens the door for CalCPA and the profession to work more closely with schools and students who are exploring career paths . CalCPA ’ s advocacy work to help move this from concept to reality was instrumental in getting legislation signed .
Opposing Overly Complex Tax Policies In keeping with its commitment to fair and manageable tax policies , CalCPA took a stand against two untenable tax proposals :
• AB 259 ( Wealth Tax ): CalCPA worked to prevent this proposed wealth tax from becoming law , arguing it would add unnecessary complexity for taxpayers and would be nearly impossible to implement . CalCPA ’ s engagement with business stakeholders were key in stopping this proposal from moving forward .
• Tax on Services : Another tax concept that continues to be considered was also targeted as part of a proactive effort to squash it before it could mature into a real proposal . CalCPA has been a leading voice in a coalition that
CalCPA ’ s impact was evident throughout the legislative process as we worked to represent the interests of our members and California ’ s CPAs on key issues . continues to reiterate the challenges a tax on services would have for taxpayers , practitioners , and the broader economy . These are wins for Californians and businesses , as they help keep the tax system reasonable and efficient .
Refining the Pass-Through Entity Tax CalCPA has been advocating for improvements to the Pass-Through Entity Tax ( PTET ) to make it easier for eligible businesses to participate . Two bills were introduced to address these issues . While they ultimately stalled in the Legislature this year , they have paved the way for efforts next year .
• SB 1192 : Proposed to extend the sunset date for PTET to provide more clarity despite uncertain federal rules for caps on state and local taxes .
www . calcpa . org