President Obama Taps Paul Volcker to Reform Tax Code.

From Bloomberg News;

March 25 (Bloomberg) -- President Barack Obama is putting former Federal Reserve Chairman Paul Volcker in charge of a tax- code review aimed at closing loopholes, streamlining the law and generating revenue, budget Director Peter Orszag said.

Volcker, 81, who heads the president’s Economic Recovery Advisory Board, is being asked to take a look at the laws in an effort to rebalance the tax system.

Orszag said the review, given a deadline of Dec. 4, is being ordered to make recommendations on steps to simplify the code, built over the last 96 years, in ways that would reduce tax evasion and what he called “corporate welfare.”

“There are hundreds of billions of dollars in uncollected taxes each year,” Orszag said in a conference call. The Volcker board “will be examining ways of being even more aggressive on reducing the tax gap.”

The tax gap is the difference between the amount of taxes owed by taxpayers and companies and the amount collected. Orszag cited academic studies suggesting that the difference is $300 billion or more. That is “ a lot of money,” he said, adding that the administration is going to be “as aggressive as possible” in reducing it.

Hmmm.  As you all know by now I have a man-crush on Mr. Volcker.  One time I was on the NYC-DCA shuttle and The Chairman walked on to the plane.  I was sitting in a window seat and another guy had the aisle.  The Chairman threw his briefcase, that looked like it was about seventy-five years old, into the middle seat, put his coat in the overhead, and literally threw his 300 lb frame into the middle seat, crushing me against the window.  I was too afraid to say anything so I watched over his shoulder as he read through the Financial Times, all the time thinking, "He is reading this article about the Euro and he knows everything the reporter knows and everything he doesn't know!  How exciting!"

Ok, maybe I have some issues.  Anyway, I don't like this move.  Sending Volcker to go work on taxes for the rest of the year, right after he seemingly disagreed with the Administration over the timing of regulatory reform, smells to me that Larry Summers threw a hissy fit and told the president that he wasn't going to play in the sandbox anymore with Mr. Volcker.  Additionally, Mr. Volcker's comments about bringing back Glass-Steagall had to chaff Dr. Larry's butt. Why can't Summers go and do the tax thing?  It sounds perfect for him.  An academic circle-jerk.  Meanwhile, real work needs to be done by real people that have actually solved an economic crisis before.  Mr. Volcker is one of the few individuals we have that can lay that claim.  Unfortunately, President Obama seems to be making the wrong personnel choice.

Comments

[GH]

Put Volker in charge of the treasury and appoint Bill Bradley Chief of Staff and listen to them.

[eric]

Good point AC. Maybe the Chairman can blackmail some sense into them. My friend worked for him and he said that Volcker's favorite saying was, "This is the stupidist thing I've ever heard!" How about one of those at a financial stability press conference!

[PissedOff]

Obama loves window dressing since the beginning with his talk of transparency and clean government but his actions of appointing tax cheats in his cabinet. What a sad day for U.S.A.

[A C Shareholder]

Gotta agree with you Eric. Volker showing amazing patience with the Obama administration and Little Larry and Timmy. All those who have solved a financial crisis and didn't let big companies push them around raise their hand. Ahh Big Paul is the only one. Personally, a little blackmail may work better. Volker 81 at this point, his reputation and place in history is secure. Take a meeting with Obama. Tell him, "I don't like being used as window dressing and I hate this plan. If I don't get a real seat at the table I will go out and show you just what someone with some real gravitas that young Timmy doesn't have can do to market when he speaks." Volker coming out against the plan...that's worth a 20% down day isn't it?