Federal Tax Policy 

Advocacy That Makes a Difference

The TXCPA Federal Tax Policy Committee is dedicated to advocating for our members and the accounting profession at the national level. Our team of experienced professionals reviews federal tax legislation, regulations, and administrative pronouncements to ensure your voice is heard in Washington. Through proactive engagement, we provide thoughtful feedback and expert input to policymakers, striving to shape fair and effective tax policy that supports the needs of our members and the broader accounting community.

What We Do

  • Analyze proposed federal tax laws and regulations for their impact on our members and the profession.
  • Submit formal letters, comments, and recommendations to key government agencies and officials.
  • Keep TXCPA members informed about critical policy developments and opportunities for engagement.
  • Represent the collective expertise and interests of Texas CPAs in the federal policy-making process.

Response Letters and Articles

We are committed to transparency and keeping you updated on our advocacy efforts. View the most recent letters submitted by the Federal Tax Policy Committee, as well as articles drafted on recent federal tax issues here.

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Pass-through Entity Tax

  • Published on May 31, 2025

Contact Your U.S. Senators

Members are encouraged to contact Senators Ted Cruz and John Cornyn by Friday, June 13. Assets for members usage are available below.

May 16, 2025

The proposed tax legislation from the U.S. House Ways and Means Committee released this week includes significant repercussions for accounting firms and all Specified Service, trades or businesses (SSTBs).

As currently drafted, the legislation takes away the ability to use the pass-through entity tax (PTET) deduction and would disadvantage SSTBs - including accountants, lawyers, dentists, and doctors - by subjecting them to the individual cap on state and local income tax deductions at the federal level. This would apply regardless of the partners’ or owners’ income level or the state in which they reside. By eliminating PTET, the proposed legislation indirectly raises taxes on millions of businesses.

The House Ways and Means Committee’s proposed tax legislation makes the situation worse for pass-through entities, while leaving their competitor corporations’ ability to deduct state and local taxes untouched. Corporations may fully deduct state and local income taxes in determining their taxable income. The federal deduction for state and local income taxes for individuals is currently capped at $10,000. This has a disproportionate impact on business owners who operate as sole proprietorships, disregarded entities, and pass-through entities.

Protect Texas CPAs and Small Businesses: Take Action Today

Proposed changes to the federal tax code could unfairly penalize CPAs and other professionals by eliminating the State and Local Tax (SALT) deduction for Pass-through Entity Taxes (PTET). This would mean higher taxes for partners and owners of many service-based businesses — including accounting firms — and could discourage the formation and growth of these firms.

Help us protect Texas CPAs and the clients you serve

We urge you to contact your Members of Congress and share your concerns. Let them know that eliminating the PTET SALT deduction would deepen the inequity between pass-throughs and C corporations and place an undue burden on professionals who support local economies across Texas.

 

 

  • Question

    Why This Matters

    This incredibly important work helps ensure that tax regulations and accounting standards are fair, practical, and serve the public interest. Discourse with regulatory bodies during rulemaking can make a huge impact on our economic well-being.

  • Feedback

    A Public Service

    Providing feedback to standard setting and regulatory bodies on proposed rules is of crucial importance. Accounting professionals provide a grassroots perspective from those who understand the wider ramifications of rules compliance.

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    We Need You!

    Volunteerism is at the heart of our all our advocacy efforts. Fresh faces and new perspectives are always much welcome - and much needed. Make your voice heard and make a difference!

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What TXCPA is doing

Browse through our latest feedback to regulators.

Pass-through Entity Tax

  • Published on May 31, 2025

Contact Your U.S. Senators

Members are encouraged to contact Senators Ted Cruz and John Cornyn by Friday, June 13. Assets for members usage are available below.

May 16, 2025

The proposed tax legislation from the U.S. House Ways and Means Committee released this week includes significant repercussions for accounting firms and all Specified Service, trades or businesses (SSTBs).

As currently drafted, the legislation takes away the ability to use the pass-through entity tax (PTET) deduction and would disadvantage SSTBs - including accountants, lawyers, dentists, and doctors - by subjecting them to the individual cap on state and local income tax deductions at the federal level. This would apply regardless of the partners’ or owners’ income level or the state in which they reside. By eliminating PTET, the proposed legislation indirectly raises taxes on millions of businesses.

The House Ways and Means Committee’s proposed tax legislation makes the situation worse for pass-through entities, while leaving their competitor corporations’ ability to deduct state and local taxes untouched. Corporations may fully deduct state and local income taxes in determining their taxable income. The federal deduction for state and local income taxes for individuals is currently capped at $10,000. This has a disproportionate impact on business owners who operate as sole proprietorships, disregarded entities, and pass-through entities.

Protect Texas CPAs and Small Businesses: Take Action Today

Proposed changes to the federal tax code could unfairly penalize CPAs and other professionals by eliminating the State and Local Tax (SALT) deduction for Pass-through Entity Taxes (PTET). This would mean higher taxes for partners and owners of many service-based businesses — including accounting firms — and could discourage the formation and growth of these firms.

Help us protect Texas CPAs and the clients you serve

We urge you to contact your Members of Congress and share your concerns. Let them know that eliminating the PTET SALT deduction would deepen the inequity between pass-throughs and C corporations and place an undue burden on professionals who support local economies across Texas.