|Actually, there may be an opportunity for tax reform next year, particularly if the Republicans win the Senate and take Harry Reid out of the equation. Paul Ryan is expected to become the Chairman of the House Ways and Means Committee, Ground Zero for all tax legislation. He is on record as wanting to rewrite the tax code. Obama has previously stated that our corporate tax rates are too high and that he would accept lower rates in exchange for the closing of some loopholes. There may be an opportunity for compromise. The window closes, of course, when the 2016 presidential campaign begins.|
If nothing changes and corporations continue to exit the U.S., the "fixes" will probably be punitive, which would only accelerate the flight of U.S. companies and dissuade foreign companies from investing in the U.S.