Survey Respondents Say No Chance of Fundamental Tax Reform in 2014
Washington, D.C., March 11, 2014 -- Miller & Chevalier Chartered and the National Foreign Trade Council (NFTC) today announced the results of their 2014 Tax Policy Forecast Survey measuring the current perspectives of leading business tax executives on the tax legislative agenda in 2014. In light of pending changes in tax-writing committee leadership, the pending Congressional mid-term elections and competing legislative priorities, survey respondents believe tax reform is such a low priority that it might be off the agenda for 2014.
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Business tax executives overwhelmingly support fundamental tax reform, but not one respondent predicted tax reform will be enacted in 2014. Respondents believe that the combination of a divided Congress and the Obama Administration’s priorities have the most negative impact on any chance of reform in 2014. Most executives chose House Committee on Ways and Means Chairman Dave Camp, who is term limited, as the most influential tax policymaker this year.
"Respondents don't believe comprehensive tax reform can be enacted given the current legislative and political environment but are hopeful that short-term priorities such as the tax extenders package will be addressed," said Miller & Chevalier Member Marc Gerson, former Majority Tax Counsel to the U.S. House of Representatives Committee on Ways & Means.
Most respondents were apprehensive over the tax policies tied directly to the global competitiveness of U.S. businesses. Executives believe that the enactment of revenue offsets absent a competitive tax system or competitive tax rates, the statutory tax rate and taxation of international operations are the most important concerns they would like the government to correct.
"American businesses are looking for significant tax reform that will level the playing field with the rest of the world. Survey results indicate that the distinct partisanship and lack of prioritization by the Administration has top executives concerned that the worldwide tax system and statutory tax rate will not be reviewed and reformed," said Catherine Schultz, Vice President for Tax Policy at the NFTC.
In January 2014, Miller & Chevalier and the NFTC distributed a survey via email to leading business tax executives, including Vice Presidents, Directors and Managers of Tax at a broad cross-section of U.S.-based and foreign-based multinational corporations. Some survey highlights include:
- U.S. businesses are uneasy about global competitiveness. Topping the list of tax concerns respondents would like addressed are the enactment of revenue offsets absent a competitive tax system or competitive tax rates (24 percent), the statutory tax rate (18 percent) and taxation of international operations (18 percent).
- Respondents say changing the worldwide tax system (32 percent) and reducing the statutory tax rate (35 percent) could be game changers in the global marketplace.
- Divisions in Congress coupled with the Administration's weak support are preventing tax reform. Obama Administration priorities (40 percent) and the split in Congressional control (30 percent) were cited by respondents as the factors that will have the most negative impact on reform in 2014.
- Respondents believe House Committee on Ways and Means Chairman Dave Camp is the most influential tax policymaker, followed by President Barack Obama, Senate Majority Leader Harry Reid, House Speaker John Boehner and new Senate Finance Committee Chairman Ron Wyden. Chairman Camp’s release of the Tax Reform Act of 2014 after the survey date only solidifies his role as the top tax policymaker.
- More than three quarters of respondents believe that split party control of the House and Senate will result in little or no tax legislation this year.
- Not even one respondent predicted tax reform will be enacted in 2014.
For a full copy of the survey results and analysis, please contact Laura Miller at (312) 252-4104 or firstname.lastname@example.org or visit www.millerchevalier.com or www.nftc.org.
About Miller & Chevalier
Founded in 1920, Miller & Chevalier is a Washington, DC law firm with a global perspective and leading practices in Tax, Employee Benefits (including ERISA), International Law and Business, White Collar and Internal Investigations, Complex Litigation and Government Affairs. In an era of big law, Miller & Chevalier is a top-ranked firm sharply focused on targeted areas that interact with the federal government. Over the past three years, the firm's lawyers have represented nearly 40 percent of the Fortune 100, nearly a quarter of the Fortune 500 and nearly one-third of the Global 50. Based in Washington, DC, a significant number of firm lawyers have held senior positions in the U.S. government and have written many of the regulations they currently help clients navigate. For more information on the firm, visit www.millerchevalier.com.
About the National Foreign Trade Council
The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.
Marc Gerson, Member, Tax Department, Miller & Chevalier, 202-626-1475
Catherine Schultz, Vice President, Tax Policy, National Foreign Trade Council, 202-887-0278, ext. 2023
Laura Miller, Media Relations, Greentarget, 312-252-4104