Senior Presidential Advisor Karl Rove Addresses ACCF Forum

“THE BUSH ADMINISTRATION has made exceptional advances in a number of areas since taking office,” Mr. Karl Rove, senior advisor to President George W. Bush, told ACCF supporters at a July 11 Capital Formation Forum. Mr. Rove oversees the strategic planning, political affairs, and public liaison efforts of the White House. He previously served as chief strategist for the “Bush for President” campaign.

Mr. Rove outlined six major issue areas in which the Administration has achieved the goals it set during the campaign or made substantial progress toward its objectives. Among the Administration's accomplishments are the major tax reduction bill signed into law by President Bush on June 7; an education reform bill currently awaiting action by a House-Senate conference committee; and the faith-based initiative now heading to the House floor. (The House passed key elements of the PresidentŐs community and faith-based initiative in “The Community Solutions Act,” H.R. 7, on July 19.) In addition, the Administration has addressed military modernization; Medicare reform and modernization; and Social Security reform in a meaningful fashion and anticipates that Congress will act on these key issues.

“President Bush stood on the principles he outlined in the campaign when he laid out his tax cut plan last December,” Mr. Rove said. “There are a number of issues where the people are way ahead of the politicians and are ready and willing to reward those who push the envelope. According to the polls, a majority of Americans said the top rate on earned income should be 33 percent or less. This suggests that the people believe that there should be a limit on tax rates,” Mr. Rove emphasized.

“I really appreciate what the ACCF did to promote passage of the 2001 tax bill, especially since many of the measure’s provisions were not at the top of the American Council’s agenda," the President’s chief strategist said. “You understood that the President needed this victory to build toward the important tax policy initiatives he wants to address later in his Administration.” Turning to the energy bill before Congress, Mr. Rove stressed that America will face an energy situation similar to that in California unless action is taken to remedy the underlying problems. “We need to move forward on all fronts—conservation, efficiency, supply, and technology—if we are to solve the problems confronting us today,” he said. (The House passed an energy policy bill, “The Energy Tax Policy Act,” H.R. 4, addressing parts of the President’s energy plan on August 2.) Mr. Rove concluded his remarks by noting that Washington is “fascinated by the new.” He added that the Administration is exhausting the inventory of policy issues it brought to town through the campaign. “President Bush is eager to lay out the next steps in his agenda on taxes and other issues he is committed to addressing and plans to do so after Labor Day,” Mr. Rove promised.

Center Hosts Roundtable on Climate and Energy Issues for Washington Diplomatic Community

A RECENT ROUNDTABLE DISCUSSION for the Washington-area diplomatic community on climate change and energy issues hosted by the ACCF Center for Policy Research provoked a lively exchange of views. ACCF Center for Policy Research Senior Vice President and Chief Economist Dr. Margo Thorning moderated the discussion, part of a series of briefings and discussions for policymakers, congressional staff, and the diplomatic community that the Center has hosted over the past year.

The June 19 session began with representatives from several countries offering perspectives on the outlook for upcoming negotiations in Bonn on the Kyoto Protocol and on their countries’ respective energy outlooks. Ms. Meg McDonald, deputy chief of mission, Embassy of Australia, told the gathering that Australia remains committed to dealing with climate change, but hoped that any international agreement would be environmentally effective, efficient, and provide equitable treatment of all parties. “Less pain is needed,” she said.

Mr. Bo Eriksson, deputy chief of mission, Embassy of Sweden, pointed out that the European Union feels very strongly that global leadership is required in mitigating climate change. He noted that the EU felt the Kyoto Protocol remains the best available option, and hoped negotiators would avoid “making the best the enemy of the good.”

The deputy chief of mission of the Embassy of Venezuela, Mr. Luis Herrera Marcano, noted that while developed countries should lead with emission cuts, it would be a mistake to do nothing but “point fingers” in international negotiations.

An active give-and-take followed the opening remarks, with representatives from nearly 60 developed and developing countries participating. During the discussion, Dr. Thorning called attention to a number of studies showing that projected carbon emissions in the European Union—a strong critic of President Bush for his rejection of the Kyoto Protocol—were expected to be an average of 17 percent above the EU’s Kyoto target.

Dr. Thorning stressed that a U.S. strategy for a productive climate policy providing energy security should include fixing the U.S. tax code; expanding nuclear energy; expanding bilateral cooperation with developing countries; expanding incentives for use of landfill methane and biomass including ethanol from cellulose; implementing a multi-year plan for improvement of coal technology; removing regulatory barriers; avoiding caps on CO₂ emissions by U.S. industry; and avoiding setting targets for global CO₂ concentrations in the range of 550 ppm in the next 75–100 years.

For information regarding future briefings on climate change and energy, please contact Dr. Thorning at 202/293-5811 or mthorning@aol.com.

ACCF's International Outreach

• ACCF Chairman Dr. Charls E. Walker meets with public affairs graduate students from the University of Ulster in Northern Ireland to discuss developments in U.S. tax policy during his long and active career.
  
  
• ACCF President Mark Bloomfield recently held meetings with policymakers from Japan's Ministry of Finance and businessmen from Bhutan, to discuss tax policy reform for economic growth. The visits were arranged by the U.S. State DepartmentŐs International Visitor Program. Below, Mr. Bloomfield [center] greets Mr. Lhendup Dorji, businessman, and Mr. Ugyen Tenzin, former mayor of the capital of Bhutan. 

Tax Policy and Technology Focus of Senate Climate Change Testimony

ACCF Senior Vice President and Chief Economist Dr. Margo Thorning recently presented testimony on “Tax Policy and Technological Innovation: Key Partners in Productive Climate Change Policy” [PDF] as an invited witness before the Senate Committee on Governmental Affairs. Other panelists at the July 18 hearing, called by Committee Chairman Joseph Lieberman (D-CT) to examine S. 1008, the “Climate Change Strategy and Technology Act of 2001,” included Ms. Eileen Claussen, president, Pew Center on Global Climate Change; Dr. James A. Edmonds, senior staff scientist, Battelle; Mr. Dale E. Heydlauff, senior vice president-environmental affairs, American Electric Power Company; and Mr. Jonathan Lash, president, World Resources Institute. 

Center Board Member to Head Office of Information and Regulatory Affairs

Former ACCF Center for Policy Research board member Dr. John D. Graham has been confirmed by the United States Senate as Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget. In his new position, Dr. Graham will oversee regulatory activities across the federal government. Previously, Dr. Graham served as professor of policy and decision sciences and founding director of Harvard's Center for Risk Analysis, where he worked to identify cost-effective ways to save lives, prevent injuries and diseases, and protect the environment.