Snow: Go Slow on Consumption-Style Taxes, Half a Loaf on Estate Taxes

Treasury Secretary John Snow issued a note of caution to conservatives favoring an increasingly consumption-oriented tax system. Snow said that although there were good theoretical points to a consumption-oriented tax, issues such as transition costs and unintended consequences needed to be more carefully studied. Additionally, although Snow still preferred a repeal of the estate tax, he indicated that a less drastic solution (perhaps significantly increasing the unified credit and capping the tax rate??) might be acceptable in preference to the present situation.

To some degree, Snow's comments are a recognition that President Bush is perceived to have lost some political clout as a result of the President's falling poll numbers and the nervous behavior of Republican Congresspeople looking ahead to the November elections.