Friday, December 21, 2007

WSJ on the good and bad of Fred

From late November, but still quite relevant...

A mostly glowing piece on Fred Thompson from the WSJ editorialists-- followed by a disappointed and relatively scathing critique of his style and strategy by Kimberly Strassel...

Fred Thompson's Presidential campaign has been struggling, in part because of a sense that he lacks passion and an agenda. But late last week he unveiled a tax reform that is more ambitious than anything we've seen so far from the rest of the GOP field.

Mr. Thompson wants to abolish the death tax and the Alternative Minimum Tax and cut the corporate income tax rate to 27% from 35%. But his really big idea is a voluntary flat tax that would give every American the option of ditching the current code in favor of filing a simple tax return with two tax rates of 10% and 25%.

Mr. Thompson is getting aboard what has become a global bandwagon, with more than 20 nations having adopted some form of flat tax. Most--especially in Eastern Europe--have seen their economies grow and revenues increase as they've adopted low tax rates of between 13% and 25% with few exemptions.

The main political obstacle to such a reform in the U.S. has come from liberals, who favor punitive taxes for "class" reasons, and K Street corporate lobbyists who want to retain their tax-loophole empires....

We'd prefer a flat tax with one rate instead of Mr. Thompson's two. Once the concession is made that richer people should pay a higher tax rate, the political temptation is always to raise the rate on the wealthy. The virtue of the single-rate flat tax isn't merely its efficiency but also its moral component: It treats all taxpayers equally. If a person makes five times more money than his neighbor, he should pay five times more taxes, not 10 or 20 times more.

However, what's refreshing about the Thompson plan is that it goes well beyond the current Republican mantra to make "the Bush tax cuts permanent." That is certainly needed, but the GOP also needs a more ambitious agenda, especially with economic growth slowing. The flat tax has the added political benefit of assaulting the special interests who populate the Gucci Gulch outside Congress's tax-writing committee rooms. Lower rates and simplify the tax code, and you instantly reduce the opportunities for Beltway corruption. It is both a tax policy and political reform.



Now for Ms. Strassel's piece...

On Fox News this Sunday, Fred Thompson laid out the most creative tax proposal yet in the race for president. It should have been an important moment, the point at which GOP aspirants finally dug into a core issue and went a few rounds over marginal rates and corporate levies.

Instead, nothing. The Thompson plan inspired little fanfare, less press and didn't even merit time during this week's GOP debate. The black hole says everything about the mess that is the Thompson campaign, and just as much about today's intellectually bereft Republican primary campaign....

This week's tax proposal was decidedly fresh, going beyond the run-of-the-mill candidate promise to extend the Bush tax cuts, and calling for the end of the death tax and the AMT, a cut in the corporate tax rate and even a voluntary flat tax. According to a campaign source, in upcoming weeks Mr. Thompson will unveil plans to reduce federal spending by limiting nondefense growth to inflation, earmark reform, and a one-year freeze on the hiring of non-essential civilian workers and contractors.

There's plenty here to get conservative voters and bloggers and pundits engaged in some healthy, even lively, debate. That is, if they'd heard any of this. Most haven't, and for that Mr. Thompson has mostly himself to blame.

While it isn't clear who set the "rules" for this manic election, they're set. Voters may only pay attention at the end, but having an infrastructure to make sure those voters hear you in the final months is the work of years....

None of this happened in the wake of Mr. Thompson's Fox announcement. The campaign simply didn't have the stuff to pull it off. Worse, its own leader refused to do what is expected. A look at Mr. Thompson's schedule revealed not a single public appearance for three days after the release, right up to Wednesday's highly uninformative CNN debate.

Speaking of dull debates, that's Mr. Thompson's other problem...

Mr. Thompson's inertia has meant his campaign is no longer in control of its destiny. His best shot now is that Mr. Huckabee and Mr. Romney go nuclear, leaving him with a ticket out of Iowa and some hope. He still ranks second behind Mr. Giuliani in national polls. But putting himself in a position to build off any lucky outcomes will involve trying to play the game he so detests. If he believes his ideas are as important for the country as he says they are, he will.

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