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Business Leaders Optimistic for Tax Reform … in 2018

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Mar 27th 2017
Staff Writer and Editor AccountingWEB
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Now that House Republicans have pulled their bill to repeal the Affordable Care Act, President Trump and GOP leaders are turning their attention to other matters, including tax reform. But most business executives don’t anticipate a tax code revamp to happen anytime soon, according to a recent poll by KPMG LLP.

Only 16 percent of the more than 1,000 business professionals, including tax and finance leaders, surveyed during a March 2 KPMG TaxWatch webcast expect business tax reform to be achieved in 2017.

The majority (53 percent) of respondents point to 2018 as the year that significant business tax changes will most likely occur.

According to the survey, 11 percent do not expect tax reform until 2019, and 21 percent weren’t sure when it is going to happen.

“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,” Jeffrey LeSage, vice chairman of KPMG’s Tax Practice, said in a written statement. “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.”

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 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.”

Related articles:

How Trump’s Tax Proposals Would Affect Businesses
House GOP Makes the Case for Border-Adjustment Tax

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