Business leaders are skeptical of Congressional predictions that U.S. tax reform will come by this summer, with more than half (53 percent) predicting that significant business tax reform won’t arrive until 2018, according to a recent poll by KPMG LLP, the U.S. audit, tax, and advisory firm.
Only 16 percent of more than 1,000 respondents polled during a recent webcast expect tax reform to be achieved in 2017. In addition, 11 percent do not expect reform until 2019, and 21 percent are unsure of the timing.
“While many factors could affect the timing and eventual content of the tax reform proposal, the legislative process clearly needs to be a key area of focus for business leaders,” said Jeffrey C. LeSage, Vice Chairman – Tax at KPMG. “Although the outcome is uncertain, we are looking at the best chance for meaningful tax reform in decades, so attention will likely continue to be high as developments unfold,” he added.
When asked which of the proposals in the current House Republican tax plan would have the greatest anticipated impact on their business, 41 percent cited the proposal’s new reduced corporate tax rate structure. From an industry perspective, respondents from the retail and industrial manufacturing sectors selected the hotly-debated border adjustment proposal as likely having the greatest impact on their organizations, at 38 percent and 37 percent, respectively.
“Developments on the tax reform front could evolve quickly,” said John Gimigliano, principal in charge of Federal Tax Legislative and Regulatory Services in the Washington National Tax practice of KPMG. “That’s why business leaders need to stay engaged, consider how the House GOP Blueprint may affect them, and be ready to respond quickly as tax reform advances through the legislative process.”