Election year politics hinder chances of timely reform.

• Position: CORPORATE TAX

Nearly half of the senior executives who participated in a recent survey by KPMG'sTax Governance Institute (TGI) say they don't expect any reform in the corporate tax rate until after the 2012 presidential elections.

Of those who anticipate future reform, most say their expectations are modest--a decline in rates to between 30 and 34 percent.

And about one-third of the respondents predict that any corporate rate would likely be offset by reducing or eliminating outright the benefits provided by three key tax provisions: the domestic manufacturing deduction, accelerated depreciation and the use of foreign tax credits.

Hank Gutman, KPMG tax principal, TGI director and former chief of staff of the U.S. Congressional Joint Committee on Taxation, said of the findings: "As many of the survey respondents believe, it is our view that major tax reform will not happen quickly."

He added, "If rates are in fact lowered and preferences reduced or eliminated, we will see an outcome with winners and losers."

Also, Gutman said this will occur "because the use of preferences is not uniform across all businesses."

Companies, he added, need to "stay nimble and ensure they are in a position to respond to what develops."

Gutman noted that tax issues today are complex, the economic and fiscal conditions far different from those that paved the way for the Tax Reform Act of 1986.

He indicated four major variables that are expected to drive the current debate: "the government's fiscal condition, the...