Calpundit has the heads up on this one, though he highlights a different quote.

“The White House team is saying that the Fed chairman has lost sight of the broader thrust of the president’s tax proposals. They claim that Bush has started a major revamp of the tax system, from one that taxes investment and savings, to one that taxes consumption [emphasis mine]. Rather than make one massive effort to achieve that goal, they say, Bush is chipping away at the problem, with the abolition of the double taxation of dividends and the institution of new tax-advantaged savings plans. They say that these are the first steps on what will be a long road. As the Financial Times perceptively notes, ‘Little by little, [the administration] has headed towards the distant dream of some Republicans: a tax system based on consumption.'”

Calpundit muses accurately “And on a related note, is it just my imagination or is the Standard really a more interesting, more unpredictable, and basically more honest conservative magazine than National Review? It seems that way to me.”


P.S. is not intended to be “consumption tax central”, I just happened to start this blog as the issue was picking up steam. Soon, I’ll have thoughts on dividend taxes and why they are bad (it’s not the intrinsic unfairness of double taxation)–and no, that statement doesn’t mean that I favor the Bush plan.