"Survey Says Corporate Tax System’s Uncompetitive"Accounting Today
Marc Gerson commented on the legislative outlook for tax reform in 2014. According to an annual survey released by Miller & Chevalier and the National Foreign Trade Council, tax reform is unlikely this year. "It's productive for taxpayers to be looking at the continued discussion on tax reform, but 2014 will be an interesting and dynamic year, given the current legislative and political environment," Gerson said, adding that he is not surprised by the results. "It is hard to see a path for reform to be enacted this year. The debate and discussion will continue, and we encourage taxpayers to continue making comments on different drafts, but tax reform is a long-term proposition. We're trying to focus on short-term priorities, such as the expired tax provisions."
Senator Ron Wyden, the new chairman of the Senate Finance Committee, has a demonstrated interest in tax reform, Gerson said. "It will be interesting to see where his priorities are, but my feeling is he will probably start with a focus on the tax extenders." The survey also revealed a difference in opinion among tax executives. "When asked to pick the most significant tax reform issue, we got an even split between the two most popular answers: a high statutory rate and replacing the current international tax system with a territorial regime," he said.
Survey respondents highlighted global competitiveness as the key factor that will have the most positive impact on tax policy in 2014, however executives remain doubtful about the prospects of reform. "This year, not one respondent thinks tax reform will happen," Gerson observed. "That's pretty stark."