Federal Keyperson Visits Focus on Nation’s Fiscal Health By Nickolas G. Myers, CPA

n May, a contingent of MSCPA leaders Office (GAO), currently serves as founder and CEO of converged in Washington, D.C. for the AICPA’s the Comeback America Initiative (CAI). His message 125th Anniversary and Spring Council meeting. focused on the current national financial imbalance The nation’s fiscal health emerged as the event’s and impending financial crisis if the nation does not most prominent topic—notably the annual deficit address the causes. In Walker’s opinion, the cause is spending and the resulting national debt. the result of actions or inaction of both parties, and his MSCPA delegates visited U.S. Senator suggested remedy is “no budget, no pay.” Walker believes and U.S. Representatives Jo Ann Emerson, Presidential leadership on the issue is the key to unifying IBlaine Luetkemeyer, and the American people and bringing their will to bear to discuss this issue and share a new resource—Total on Congress. Tax Insights. The AICPA developed this online tool The AICPA and CAI have jointly produced a brochure (www.totaltaxinsights.org) that approximates your total that presents the nation’s financial imbalances at both tax burden (not just income taxes). Lawmakers showed the global and personal level. You can view the entire deep interest in the resource, which may also be beneficial brochure at www.keepingamericagreat.org, but some to share with your clients. key factors include the being ranked 28 In addition, MSCPA delegate Tom Hilton and other of 34 countries in the Sovereign Fiscal Responsibility AICPA Board members met with the White House’s Index, which measures a country’s fiscal fitness and high-level economic team in the West Wing to further sustainability based on fiscal space, fiscal path and fiscal discuss concerns over the national debt. Furthermore, governance. Because the trillions of dollars in federal during the AICPA PAC breakfast, Wisconsin’s U.S. deficits, debt and unfunded obligations are hard to Senator Ron Johnson, who has a bachelor’s degree in comprehend, the brochure translates the figures into per accounting and worked as an accountant in industry, person and per household amounts. The amounts are in expressed concern with the nation’s fiscal imbalance and addition to any mortgage, credit card, auto, student loans the lack of a national budget. He noted the U.S. House of and other debt one may have. Representatives has passed budgets and sent them to the Per Household — Rounded to Nearest Hundred Senate for approval, but the Senate has not approved a budget for more than three years despite being required Fiscal 2011 Deficit $11,100 by statute to do so annually. He also stated the President’s Total Federal Debt as of Sept. 30, 2011 $126,900 recent budgets have been voted on twice in the House and once in the Senate and have not received a single vote— Federal Financial Hole as of Sept. 30, 2011 $551,600 from either party. As a CPA, you can see the numbers do not add up Perhaps the most impactful, timely and informative to a positive equity currently, and if not acted upon, presentation at the council meeting was made by will become a stifling burden for years to the nation’s David Walker, CPA. Walker, the former U.S. Comptroller posterity. MSCPA members and CPAs across the nation General and CEO of the U.S. Government Accountability can communicate this conclusion to their clients and communities. CPAs are experts in reporting financial

12 the Asset | July 2012 U.S. Senator Roy Blunt meets with MSCPA delegates Mike Croghan, Eric Hansen, Gary Johnson, Jim O’Hallaron, Diann Gross, Blunt, Butch Beeman, Peter Sharamitaro, and Nick Myers. MSCPA Leaders Share Key Event Highlights “David Walker’s tone of urgency to the impending facts and their implications for the future. But, the time financial crisis was especially impactful. As he for “just reporting” has passed. The CPA profession must pointed out, a U.S. debt crisis is likely within two to not only initiate discussion, but must also take action. three years unless a meaningful change comes in The problem is too great to leave to elected officials. our spending practices and tax policies. And, the Individually, CPAs need to make an impact on their greatest threat to America’s future is perhaps our own elected officials. Actions and impact in the political arena fiscal irresponsibility. Our call to action is to become are most powerful when applied at election time, which is engaged in the dialogue and use our resources to enact now. One thing candidates understand is, if they do not change in our policies for the future of America.” have the most votes at election time, they lose and do —Pat Reuter, CPA not assume office. “Reflecting upon my participation in the meeting Take action and claim personal responsibility to guide between AICPA Board members and representatives this nation on a path that will lead to a brighter future. of the Obama administration in the West Wing of the Candidates need to know that the country’s declining White House, it occurred to me that there is perhaps fiscal standing is an issue that will affect who citizens no other country on this planet that allows those with vote for. You can do this by clearly communicating opposing views to enter the office and home of the chief to candidates that you will not vote for someone who executive officer of the country and express those views does not propose or endorse a plan that will address the in a respectful and constructive manner. The system impending fiscal crisis. If a candidate has a plan that you still works if one is willing to work within it.” determine can succeed, help him or her get the —Tom Hilton, CPA votes needed to win. If not, find another candidate. “Past AICPA Chairman Bill Ezell made an impactful If no candidate can give you a plan, maybe it’s time for you presentation on the joint effort by the AICPA and to become the candidate. As predecessors have advised, the American Accounting Association to address the the price of liberty is eternal vigilance. Potential leaders growing crisis in filling faculty positions in university should humble themselves, seek guidance and work accounting programs. Potential recommendations diligently to remedy the errors of the past. By taking include: connecting students, faculty, and practitioners these actions, our nation could begin to heal. to identify competencies needed and how to effectively develop them; more efficient pathways to college Nick Myers, CPA, is president of Nick Myers, CPA, PC in teaching; and ways to move academia’s emphasis from Joplin and Anderson, Mo. He is chair of the MSCPA’s Legislation research to more on teaching.” and Government Advocacy Committee and is a past chair of the —Gary Johnson, CPA MSCPA Board of Directors. In addition, he serves as the AICPA Keyperson coordinator for the MSCPA. Nick can be reached “David Walker’s presentation highlighted both the at [email protected]. challenges and opportunities we have as a profession. As a state CPA society, we need to find a way to provide our members with the tools necessary to effectively manage the changes that are coming.” —Rick Mills, CPA

the Asset | July 2012 13