AFPM '12: US braces for ‘biggest tax reform battle’ - analyst

03 April 2012 18:26  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--The US expected to identify sources of fresh government revenues that may hit the corporate world in what could be the “biggest tax reform battle” to address its huge fiscal deficit, a political analyst said on Tuesday.

Addressing the huge deficit of the world’s biggest economy is one of the biggest challenges facing the administration of US President Barack Obama that would win the November 2012 elections.

“It will be a big, painful fight on revenue and the issue is gonna be ‘who pays?’,” NBC’s Michael Murphy told delegates at the International Petrochemical Conference (IPC).

“There is going to be a big move to go after business loopholes in the tax code. There is a big list of White House tax expenditures, which could create revenues,” Murphy said, adding that this might affect the gas world and some financial products, such as life insurance and mortgage interests.

“It could be the biggest tax reform battle… and they [the administration] don’t have a lot of time because the fiscal clock is ticking,” Murphy said.

The US national debt is currently at $15,615bn (€11,711bn) and growing, according to

“They ought to find the revenue,” Murphy said.

Obama is running for re-election.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

($1 = €0.75)

By: Pearl Bantillo
+65 6780 4359

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