Tax patents to go

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WebCPA has reported that:

The House of Representatives has voted 220-175 to overhaul patent rules and place a ban on tax-planning method patents.

H.R. 1908, the Patent Reform Act of 2007 contains a provision that would protect accounting firms from lawsuits over tax-planning methods. The bill defines "tax-planning method" as a plan, strategy, technique or scheme designed to reduce, minimize or defer a taxpayer's tax liability.

In the House Judiciary Committee report on the bill, Congress noted that if tax strategy patents were allowed to proliferate, there could be a corresponding reduction in tax revenues.

The American Institute of CPAs hailed the passage of the act. "Our underlying concern with tax strategy patents is that they violate the core principle of equity that is the foundation of our voluntary tax system," said AICPA CEO Barry Melancon in a statement. He noted that 60 tax strategy patents had already been granted and 99 more were pending.

Good news. A victory for sense. And what I wanted.