Jarrett: Tax reform ‘going to take some time’

“Every time this has been done in the past, it has taken a couple of years, if not more, to get it done,” Jarrett said at a Brookings Institution event. “So we are beginning that process now, and certainly it is a priority of the administration. It is going to take some time, it is going to be complicated, and it has to be an inclusive process and one that is mindful of the deficit challenges.”

Geithner’s scheduled get-together with the CFOs on Friday is expected to include discussion about the challenges of the corporate tax structure, Jarrett said. The Treasury Department has said the meeting would also touch on investment incentives and would be one in a series of gatherings dealing with tax reform.

“The president’s position is that he would like to have a simpler tax code,” Jarrett said. “And basic principles of broadening the base in the corporate world and lowering the rates are good principles. We know also there is a challenge in doing that given the deficit challenges that we have.”

The New York Times reported recently that Disney, Procter & Gamble, Cisco Systems and Caterpillar are among the companies expected to be represented Friday. The meeting between Treasury and the CFOs also comes about a month after President Obama sat down with corporate chief executives, a gathering that also included talk about tax reform. 

In fact, a number of both Republicans and Democrats have recently endorsed taking a look at the nation’s tax code. But the recent public conversation over tax reform has been fairly general so far. 

Jarrett said the administration expects to find disagreements within the business community because “a loophole for one is a real benefit for somebody else.” She also said the administration will be looking to alter the tax code to level the playing field with foreign competitors.

 “Is there a way that we can level the playing field and allow our U.S. companies to compete in the global marketplace? Because we don’t want our tax structure to be a disincentive,” Jarrett said.