AEI: Don't Expect Big Initiatives in the State of the Union

Administration spokesman Scott McClellan told the conservatively-oriented American Enterprise Institute not to expect drastic initiatives in President Bush's State of the Union address this evening. Bush is expected to push for expanded Health Savings Accounts and wants to continue on the path towards making tax cuts permanent, but will not bring forth anything nearly as dramatic as last year's Social Security reform. In a somewhat related development, President Bush has chosen Edward Lazear to be his top economic advisor.

At a time where most political analysts see the President as politically shaky, caution on the tax front is probably prudent. Nevertheless, tax reform and Social Security reform cannot be put off indefinitely.