ACR NEWSLETTER

Normally when we tell someone we’re interested in taxes, we get an eye roll, or worse.  Unless we are with our tax policy peers, we often feel like the skunk at the garden party.

So imagine our sense of wonder over all of the activity in tax world in the last few months.  First, Herman Cain gave us 9-9-9, next a major international tax proposal from the Chairman of the Ways and Means Committee, then a major battle over extending the payroll tax cut for employees, in addition Governor Romney’s tax returns and finally, earlier this week, the President dedicated a good amount of his 64-minute State of the Union speech to taxes and the need for tax reform.  Finally, we feel as if we are on center stage!

What does all of this mean going forward?  We’ve always said we can’t imagine major tax reform passing without a President really leaning into that effort.  We saw signs that might be in the works in the President’s speech.  At the same time, we think major tax reform in a Presidential election year may be too heavy a political lift given that tax reform –by its very nature– creates losers and a lot of those losers vote.