“With a positive mind.” Another day, another trial balloon, or two. In an effort to woo Democrats, Republicans say they may be open to keeping the top tax rate for individuals at 39.6 percent and retaining  the estate tax. Meanwhile the GOP leadership may be drafting a budget resolution that leaves room for tax cuts that would lose $1.5 trillion in revenue over 10 years. This is a remarkable—though unsurprising--shift from the long-time insistence of party leaders that any tax plan would pay for itself in ten years. Said Sen. Bob Corker, “I'm going to want to believe in my heart that we're going to be lessening deficits, not increasing deficits.”

“Take some inventory…” Many conservative groups as well as the RATE coalition of companies prefer a tax rate cut  to full expensing of capital investments. Many small businesses already have expensing and don’t want to see their larger competitors put on an equal footing. Other firms worry about having to trade off some of their interest deduction for immediate write-offs of capital investment. 

“Leave the bad things behind.” Indeed, nearly nine in 10 respondents to the Business Roundtable's latest economic outlook survey say the tax code is the US economy’s biggest  disadvantage  compared to other major economies. The  Roundtable represents CEOs mostly from major multinationals. “On tax reform, CEOs are more than optimistic, they are counting on tax reform to get done,” said Roundtable president and CEO Joshua Bolten. 

“Everybody’s got a story.” In his testimony to the Senate Finance Committee yesterday, TPC’s Donald Marron offered eight key points for business tax reform. In a nutshell: Thoughtful reform could promote modest, near-term economic growth. The corporate income tax makes the system more progressive. Workers would benefit from reforms that encourage more and better investment in the United States. Taxing pass-through business income at preferential rates would inspire new tax avoidance and mostly benefit high-income people but would not  create a level playing field with corporations. It is difficult to pay for large cuts in business tax rates by limiting business tax breaks and deductions. Making business tax cuts retroactive  would not promote growth.

“For the spices of your life, you have got to pay the price.” The President may not have released his tax returns, but is special counsel Robert Mueller already reviewing them? Mueller would have had to have sought an ex parte order from a federal judge. The president would be unaware of such an action… and so would the general public.

“Telling everybody, I’m letting you know…” The massive data breach at Equifax poses another concern: Thieves filing fraudulent tax returns in order to steal tax refunds. Victims of the Equifax breach may not qualify for IRS identity-theft precautions like a Personal Identification Number.