It’s likely no surprise to anyone that a new survey from Deloitte Tax LLP indicates little expectation of corporate tax reform this year.
Released Aug. 8, the survey reveals that the vast majority (73.7 percent) of the more than 3,100 finance, tax and business professionals polled are doubtful or not at all confident of tax reform this year. Instead, 70 percent of the respondents were almost evenly split in predicting that a top corporate tax rate of 20 or 25 percent is more likely.
President Donald Trump’s 15 percent tax rate goal only won the support of 5.3 percent of the respondents.
Almost half (48.2 percent) say that lowering the corporate tax rate is the one feature of reform that is most likely to increase U.S. economic growth. And 63.5 percent believe compromise in Congress is most needed to pass a tax reform measure.
Other factors that could spur tax reform garnered less than 10 percent of respondents’ support. Those factors include presidential leadership, public and business support, and a sense of economic crisis.
Republicans had vowed a significant tax overhaul by the end of the year.
The Tax Foundation reported in August 2016 that the U.S. general top marginal corporate income tax rate of 38.92 percent is the third highest worldwide, behind the United Arab Emirates and Puerto Rico. The worldwide average corporate tax rate has declined since 2003 from 30 percent to 22.5 percent.
Deloitte conducted the survey during a July webcast. Respondents represented the retail, technology, financial services, health care and energy sectors.
About Terry Sheridan
Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.