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A NEW DONALD REGAN?

November 29, 2004

The last "great" tax reform effort took place in 1986, during the second Reagan term. President Bush has embraced a tax reform agenda for his second term, so it's logical to compare his efforts with the 1986 project.

The Bush tax policy team seems to lack the firepower of the Reagan team. While Treasury Secretary John Snow has been an earnest salesman of administration tax initiatives, he doesn't appear to be a "player" in policy development. By comparision, the Reagan administration's tax reforms were developed by Donald Regan as treasury secretary. Regan then switched jobs with White House Chief of Staff James Baker in 1985, giving the Reagan tax reform agenda a powerful and credible team for its final legislative push.

The Washington Post reports that the Bush administration is looking to add some heft to its tax policy team. The post paraphrases a "senior adminstration official as staying Secretary Snow "can stay as long as he wants, provided it is not very long."

The article lists Bush Chief of Staff Andrew Card as one possible replacement. Others mentioned in the article are former senator Phill Gramm, economic advisor Josh Bolten, and Credit Suisse former co-CEO John Mack. Gramm and Card are credible first-line policymakers who might be suited for the delicate and difficult process of getting tax reform through Congress. We know less about Mr. Mack, who was forced out of Credit Suisse, apparently after attempting to arrange for a merger of the investment bank.

If these personnel changes play out, they will be more evidence that the administration is serious about tax reform.

Thanks to Pejmanesque for the pointer.