At a critical moment in our nation’s history, a team of renowned Hoover economists traveled to Washington, DC, in October for private, closed-door briefings on President Trump’s tax reform plan.
The Hoover team met with the president’s top three economic advisers for more than an hour, providing detailed recommendations for optimal tax reform. They then spent fourteen hours on Capitol Hill in intensive sessions with leading House and Senate members, top government economists, and influential staff members.
Edward P. Lazear, the Morris Arnold and Nona Jean Cox Senior Fellow at Hoover (and former chairman of the Council of Economic Advisers), who arranged the sessions in coordination with the Hoover Institution in Washington, said, “We had the chance to affect policy as much as any outsider has the opportunity to do.”
WHITE HOUSE MEETING
Although the basic outline of President Trump’s tax reform plan has been released, the message carried by the Hoover scholars was that the impact of the plan will depend on the details of its implementation.
With America at a pivotal moment the fate of the economy for a generation will hinge on the structure and application of the plan.
That was the focus as Lazear and other Hoover economist senior fellows Michael Boskin (also a former chairman of the President’s Council of Economic Advisers) and Joshua Rauh sat down with the three most powerful economic advisers in the executive branch of the US government:
- Steve Mnuchin (secretary of the Treasury)
- Gary Cohn (chief of the National Economic Council)
- Kevin Hassett (chairman of the Council of Economic Advisers)
Also present were the top deputies to the three men, other economic experts invited by the Hoover team, and Michael Franc, Hoover’s director of DC programs.
The discussion focused on how the tax structure affects behavior and how different components of tax policy interact with one another. These factors are crucial to constructing a tax policy that encourages a free society—with enduring prosperity for all segments of the economy, top to bottom.
“The White House was thrilled with our support of their plan and in particular with some of the numbers we put together to make it credible,” said Lazear. “They’ve already followed up through e-mails.”
BEHIND THE SCENES ON CAPITOL HILL
Yet the team reported that its effect on Congress—which must pass any plan into legislation—was even more important.
In a packed day that began at 7:45 a.m. and did not end until 9 p.m., the Hoover team briefed more than fifty members of the House, three key members of the Senate, and key congressional economists and conducted sessions with staffers (including many Democrats).
Lazear and Franc both stressed that what made the day special was not merely quantity but quality.
First there was the quality of the discussions. “The members and staffers were asking in-depth questions, and clearly regarded Hoover as the top experts on this subject matter,” said Lazear. “These were graduate-level economic discussions,” added Franc.
Much deeper than congressional testimony, the give-and-take focused on the precise structure of the tax code to produce maximum prosperity and delved into the nitty-gritty of what to do—and what to avoid—in achieving those results. The scholars also explained the big picture of the virtues of limited government and lower taxes to support a free, flourishing society.
Second there was the quality of the participants. The talks included
- Powerful members and staff of the House Ways and Means Committee, including Chairman Kevin Brady (R-TX)
- A member of the Senate Budget Committee
- Many members of the House Freedom Caucus
- Senate majority leader Mitch McConnell’s top tax council and other key economic staff
- The Joint Economic Committee—members and staffers who work on economic matters.
Significantly the sessions were coordinated in part by participants in Hoover’s Stuart Family Congressional Fellowship Program, which exposes key staff members on Capitol Hill to ideas defining a free society via multiday briefings at Hoover’s California headquarters. This program is forging relationships across both parties and making the case for free market ideas supportive of freedom, markets, and economic growth.
“FILLING A VACUUM”
The sessions have laid the groundwork for more opportunities for Hoover scholars to share their ideas at the highest levels of government.
“The feedback has been overwhelmingly positive,” said Michael Franc. “It’s clear we are filling a vacuum. Both at the White House and Congress, I believe leaders recognize Hoover fellows as serious scholars at the top of the pyramid who also understand the real world. We gave them new information they urgently need right at this moment.”
The message is that officials want more from Hoover. They see the Hoover Institution as a vital trusted source of wisdom to help return America to vibrant pro-freedom economic policies.
Thank you for providing the resources that allow Hoover to give strategic leaders such vital insights at a key decision point for freedom in America.
