Business Tax Reform Prospects `Distant’: Altman

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July 31 (Bloomberg) -- Evercore Founder and Executive Chairman Roger Altman discusses corporate tax rates and inversions on “In The Loop.” (Source: Bloomberg)

With senator tom coburn about m&a and these in version yields we've seen accelerate.

What is your stance on that?

I think it is a shame, the differential between u.s. corporate tax rates and comparable global partner tax rates is so wide that a lot of corporations feel impelled to re-domicile.

That is overall not a good thing.

Fundamentally, what we have to do is eliminate that differential.

The problem is that, and legislatively, as everybody knows, it is very difficult to get anything done.

The prospects for business tax reform are distant.

The prospects for eliminating this incentive for corporations to re-domicile aren't immediate.

It is understandable why a number of them have done that here it in fact, the more of these that are done, the more companies say to themselves, if i don't, i will be at a competitive disadvantage.

Fundamentally, this is only going to come to a halt when we lower the corporate tax rate, which we must do, lower the rate and broaden the base.

The question is, what will cause us to accelerate that process.

In the interim, there will be more of this.

Do you support roger and the obama administration's stance that we should close this loophole?

I think we just need to get on with tax reform.

But that is long-term.

It is only corporate tax reform, not broad-based individual tax reform.

It would be very good to start that process.

I'm not naiàve.

It's not going to happen in 2014 unless some huge reversal occurs in sentiment in congress.

At the beginning of 2015, ideally, this process would start.

There is a benefit to these inversions.

Maybe it will wake up the congress to the degree to which they have to start on them.

I don't think the chances of a bill whose only focus is to stop inversions are very good.

In the senate, there are group of democrats who one by one said they don't think that is the approach they are interested in taking right now.

I don't think that approach is going to go anywhere.

There seems to be some hints, let's may be treaties companies that are doing this not as well then we might treat others who will keep jobs in the united states.

I don't think that is a practical approach.

I don't think that could be done as a political or legislative matter.

We are going to talk a lot more in the next half-hour.

Roger altman staying with us through the opening bell.

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This text has been automatically generated. It may not be 100% accurate.


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