President Barack Obama may want to close the loophole that allows companies to avoid federal taxes in "inversion" deals, but he doesn't really have much of a chance of getting any tax reform done, economist Joe LaVorgna said on CNBC Thursday.
Inversions, when U.S. corporations merge with a foreign company and therefore move their tax domiciles overseas, are becoming more common. If they continue, the U.S. will lose an estimated $19.5 billion over the next 10 years, according to Democrats on the House Ways and Means Committee.
"This obviously is a very divided government. The probability that the Republicans pick up the Senate in November has been rising. That would arguably make it even more divided and would likely push off any type of comprehensive tax reform until the next presidential election in '16," said LaVorgna, chief U.S. economist for Deutsche Bank.