Five Questions With: Patricia A. Thompson

Patricia A. Thompson is a tax partner at Piccerelli, Gilstein & Co. LLP, where she has worked since 1978. Her work includes heavy involvement with many closely held businesses in the manufacturing, service and real estate industries. Thompson graduated from the University of Rhode Island in 1976 with a B.S. in accounting. She continued her education at Bryant University where she received a M.S. in taxation degree in 1986. Thompson is also a personal financial specialist, receiving this designation in 1996 from the American Institute of Certified Public Accountants.
She recently received the Arthur J. Dixon Memorial Award, the highest honor bestowed by the accounting profession in the area of taxation given by the American Institute of CPAs.

PBN: You recently received the Arthur J. Dixon Award from the American Institute of CPAs. What does that recognition mean to you personally and professionally?
THOMPSON:
It means a lot to me to be recognized by my peers on the national level. I wasn’t expecting to receive this award. I enjoy what I do and will continue to contribute to the profession at the national and local levels. I will also continue to participate in Rhode Island groups that work toward improving the Rhode Island economy and getting people back to work. Rhode Island is a great place to work and live and I can’t think of living anywhere else.

PBN: Dixon was a tax expert. Do you consider yourself an “expert” in taxes?
THOMPSON:
I would prefer to be called a specialist. I spend a great deal of time studying tax issues and have gained a great deal of knowledge in this area. When I think of an expert, I think of someone who knows everything about an area. In the tax profession, you cannot know everything in all areas of tax. That is what makes working in this field so interesting, challenging and rewarding. I am able to learn something new every day. I may be tackling a new area. Congress may have passed federal tax legislation. IRS may have issued regulations on a topic of interest. That is on the national level. I then have to keep track of Rhode Island and other states’ tax law changes to make sure our staff and clients are well informed. I am lucky to work with a team of professionals who share my enthusiasm for the profession.

PBN: Tax policy has taken a front seat recently, especially in national rankings about Rhode Island’s friendliness toward business. Did the changes made to corporate and estate taxes make a substantive difference in the state’s tax climate?
THOMPSON:
I believe with the corporate changes Rhode Island will move up in the national rankings. Taxes are one of the components evaluated in the national rankings. Depending on the national rating agency, the rankings criteria may include the economy, our workforce and education, transportation and infrastructure, cost of doing business, our quality of life, the property tax, the sales tax, the corporate and the personal income tax rates. To really move up the rankings, we need to tackle each component. We have made progress but there is still a long way to go.

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PBN: What should be the next steps in tax reform in Rhode Island? And in what order?
THOMPSON:
Effective with the 2011 tax year, Rhode Island tackled personal tax reform. In this past legislative session, Legislators tackled corporate reform by lowering the corporate tax rate and instituting combined reporting effective January 1, 2015. For now, I don’t think we should make any changes to the personal and corporate reform to allow for predictability in the Rhode Island tax structure. Predictability in the tax code is a key to sound tax policy. Among other things, business owners want predictability when choosing a place to do business.
Property tax reform would be a great starting point. A March 6, 2009 Report of the Governor’s Tax Policy Strategy Workgroup studied Rhode Island’s property tax structure and offered some suggestions to enhance our tax competitiveness to retain jobs and recruit businesses. We can look to our neighboring states to see how competitive we are in the region. In addition, property tax reform is an issue across the county. We can review the property tax changes suggested or made to see if they fit into our environment.

PBN: Sales tax reform may be another area of interest. Our tax rate is the highest among our neighboring states.
THOMPSON:
I agree with the RI Business Coalition Long Term Strategy to Improve Rhode Island’s Business Climate report that suggests the we review our current tax incentive programs to determine if they are effective in making Rhode Island a more competitive place to do business. From that review, we may find funds to re-allocate to improve the skills of our workforce.
Although not a tax reform issue, I think we need to look at the skills of our workforce. Many businesses indicate that there are jobs in Rhode Island but our workforce doesn’t have the skills to fill the positions. That is a negative for Rhode Island as a business would locate in a state with the skilled workforce it needs. We should consider mentoring programs and incentive programs for employers to train our workforce. We could also work with our local colleges and universities and business owners to identify the skills needed and develop a program to train the workforce.

PBN: Given your career arc, if there were one thing you would tell a business student as an undergraduate, what would it be? Why?
THOMPSON:
My advice to a business student would be to get involved in professional and community organizations. You are able to meet so many interesting people who are able to open doors for you that would not otherwise be open to you. Doors may open for you but you are the one that has to walk through the door and perform. Don’t be afraid to step out of your comfort zone or to make mistakes. The opportunities available to you are tremendous. Seek out a mentor if that will help you move forward. Your profession most likely will require lifelong learning allowing you to grow and develop into a true professional. Enjoy every minute of it.

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