Going on the domestic offensive

Pejman lays out the case and I could not agree more.

The Bush Administration should seize on the issue of tax reform, draft a package, and push along with Congressional Republicans for approval. In doing so, the Administration and Congressional Republicans will both help their political prospects and can significantly improve the nature of tax policy.

Tax reform has the best chance of being adopted it is easier to understand a simplification of the code, than Social Security reform or how school choice would work to produce a better system. Plus Pejman is correct in pointing out the broad popular support for tax reform does cut into dem leaning voting blocks.

In theory I agree with Mr. Yousefzadeh that a consumption tax would be the optimal choice however politically it would much harder to enact. A move to a Flat tax would also greatly simplify the tax system and reams of data exist as other nations have adopted this model it seems more likely to pass the congress. I only hope the administration has the stamina to push though this reform agenda.

Personnel-wise, the current situation is a sort of perfect storm for the Bush Administration, one that may make it easier to pass a comprehensive tax reform package. The White House Chief of Staff, Josh Bolten, was Director of the Office of Management and Budget prior to taking the Chief of Staff position, and was a Deputy Chief of Staff for Policy before that. The Bush Administration has added a major player to its economic policy team in Hank Paulson, who left a lucrative and influential position as the CEO of Goldman Sachs to become Treasury Secretary. And the Administration now has former Congressman and Trade Representative Rob Portman heading up the Office of Management and Budget.
All three officials are heavyweights, well-versed in economic policy. They also know their way around political obstacles and pitfalls and can deal effectively and credibly with Congress on policy issues. In short, the President has in place a team that is primed to push for the successful enactment of a path-breaking and constructive economic policy package.