In my January-February column, I summarized the reasons for the Institute’s founding in a single sentence: "Sixty-five years ago, a small group of New York tax professionals formed TEI to provide in-house tax professionals with a forum to exchange views, educate one another, and advocate for positive changes in the tax system." Who could quibble with that? As it turns out, someone who, to borrow the title of Dean Acheson’s memoir of his time as Secretary of State, was "present at the creation." (Acheson himself appropriated the phrase — with attribution — from Alphonso X, King of Spain.)
My throw-away line about TEI’s "advocat[ing] for positive change in the tax system" prompted a letter from Morris Rinehart, a loyal reader who joined TEI sixty years ago and served as the organization’s president in 1964-1965. Morris’s genteel letter put a gloss on the word "advocating." He pointed out that, from its founding in 1944 to around 1970, TEI focused on the administrative aspects of federal tax policy, but eschewed legislative lobbying. Morris put it this way:
The founders of TEI [many of whom he personally knew] emphasized that the organization would direct its efforts only to the administration of the tax system. To propose, endorse, or otherwise advocate for legislation affecting the tax system was anathema to the founders. Fred Patton, an original member and early president [1954-1955], was particularly vocal in opposing any such efforts in Congress or state capitals as "lobbying," to be strictly avoided. Time has wisely Tempered those early views.
While, as Morris noted, the Institute lifted its proscription on lobbying nearly four decades ago, the organization remains cautious about legislative activity. Cautious, but not paralyzed. Our current advocacy policy discourages TEI’s involvement in projects that apply only to a small portion of the membership or that are politically motivated or divisive, but it does not handcuff the organization. TEI’s breadth and diversity may make taking a position difficult. That said, we should not be embarrassed by the inability to take positions on certain issues, nor should we be afraid to forge a consensus where an issue affects a broad cross-section of the membership.
How does this affect what TEI does in 2010? How, for example, will TEI respond to the report of the Bipartisan National Commission on Fiscal Responsibility and Reform, which is due to be released by December 1? Will TEI ever be able to take a position on whether the United States should (or should not) adopt a value-added tax or a fundamental rejiggering of the U.S. tax system? It is far too soon to tell, but even if the Institute declines to champion particular proposals, history teaches that it will be involved. TEI will be at the ready to identify and analyze the practical ramifications of the various proposals, to warn against unintended consequences, to suggest alternatives, and to make whatever is enacted more administrable.
To be sure, we may not always succeed, but that possibility should not keep us from trying. It’s always been that way. Morris Rinehart’s correction of the historical record should not obscure his sustained personal contribution to improving the tax system. Just one example should demonstrate that: In 1953 when the Internal Revenue Code of 1954 was wending its way through Congress, Morris was appointed to the Commissioner’s Advisory Group upon TEI’s recommendation. In that role, he provided candid advice on making the new Code more administrable. As I noted at the beginning, he was indeed present at the creation.
Social Responsibility Efforts Continue
In my last column, I wrote about the Institute’s making a Social Responsibility grant to the Kansas City Tax Clinic, a low-income tax clinic supported by the Institute’s Kansas City Chapter. I recently received a letter of thanks from Edwin T. Hood, President of the University of Kansas-Kansas City’s Graduate Tax Law Foundation. He wrote:
[O]ur primary sources of funding are an annual grant from the Internal Revenue Service’s Low Income Tax Clinic program and the UMKC School of Law, but we must also pursue funding from the private sector. With the continuing support of your organization, along with other generous donors, we are able to serve taxpayers in resolving controversies with the Internal Revenue Service. Because the Clinic’s clients have limited incomes, they are typically not able to obtain assistance from other sources...
Another recipient of a Social Responsibility Grant was Big Brothers Big Sisters of the Bay Area, a charity recommended by former TEI President Les Ezrati who himself is a Big Brother. The letter of acknowledgement described the organization’s good works:
For over 50 years Big Brothers Big Sisters has been serving the needs of the Bay Area community by providing volunteer mentors (Bigs) to children in Alameda, Contra Costa, Santa Clara, San Francisco, and San Mateo Counties. Big Brothers Big Sisters of the Bay Area never charges for our services — kids and families don’t pay a cent. That means we depend on local donations to keep going. And the phone rings every day with calls from families in all five Bay Area Counties who need our services — to the tune of 200 calls per month or more.
It’s easy to see how your investment in our programs has a tremendous impact on the lives of children as well as a financial impact on our community. Once again, please accept our gratitude for helping transform the lives of young people in the Bay Area.
A third recipient was Project Sunshine, which was nominated by the New York Chapter. I was honored to make the presentation to Beatrice Kernan, Executive Director, at the chapter’s 2010 Annual Meeting in June. In thanking the Institute, Ms. Kernan wrote:
We are grateful for your and your members’ sustained commitment to philanthropy in strained economic times. Please know that this climate means that your donation means more than ever. [TEI’s generous donation] to Project Sunshine will play an important role in allowing us to maintain and expand our recreational (arts), educational (tutoring and mentoring) and social service (HIV and nutritional counseling) programming for children in medical facilities in the New York area.
Scholarship Recipients Respond
TEI’s Dallas Chapter has continued its laudatory tradition of giving scholarships to deserving students at area colleges. One recipient this year was Alekandar Jovanoic, who wrote the chapter: "I am a graduate student in the Taxation program at the University of North Texas. I am honored to receive the Tax Executives Institute – Dallas Chapter Scholarship this year. . . .
"I am pleased with the education I have received at the University of North Texas, as well as the invaluable learning experiences this institution has made available to me that have expanded and strengthened my education. For example, in addition to my accounting and taxation coursework, I am the President of the student-run accounting organization, Beta Alpha Psi. . . ."
Another recipient of a Dallas Chapter scholarship was Hillary Nguyen, a student at the University of Texas at Arlington. She wrote: "Thank you for your generous support toward my continuing education at the University of Texas at Arlington. . . . Currently, I am finishing my third year at UTA. I plan to take the GMAT in May and afterward apply into the Professional Program in Accounting, which condenses receiving the Bachelor’s and Master’s degree to 5 years. I am also interning as a Revenue Accounting Intern for XTO Energy, Inc., at the moment. It is a part-time internship possibly lasting till my graduation date. This opportunity has given me great learning experience in my field so far.
"For my extracurricular activities, I am the Director of Public Relations for Beta Alpha Psi. I organize social events for accounting students to network with accounting firms. In addition, I volunteer as a tax preparer on a seasonal basis preparing free income tax returns for low-income individuals and families. . . ."
I stand in awe of the generosity of the Institute and its chapters, the good works of the charities that received Social Responsibility grants, and the efforts of the deserving scholarship recipients. They collectively make me proud to be part of the profession.
