I am submitting this statement to President Obama's tax reform task force headed by former Federal Reserve Chair Paul Volcker to assist it with producing a report and recommendations for fundamental tax reform.

I joined Treasury at the beginning of April 1985 as the deputy assistant secretary (tax policy) and became assistant secretary (tax policy) in December 1985, a position I held until late 1987. As assistant secretary, I was the principal spokesman for the Reagan administration on tax policy matters during that period, and my most significant responsibility was the enactment of federal tax reform.

...

In my view the following are the lessons to be learned from the 1986 experience.

1. Strong presidential leadership is needed... Obama is going to be faced with the same type of opposition from individuals and business entities whose taxes will be substantially increased by the new legislation. He must follow the example of Reagan and ignore the pleas if tax reform is to be successful.
2. Revenue neutrality and revenue raisers... Revenue raisers will clearly be needed in the legislative process... In the early stages of tax reform, few revenue raisers should be taken off the table...
3. Your [President Obama's] role in developing your recommendations... Legislation is developed in Congress in a political context of negotiation, trading issues, and ultimately securing adequate votes for passage. However, your administration should initially not focus on the politics of tax reform, but rather on the most desirable tax policy for our country. You should not subject every provision to the test of whether it will be accepted by majorities in the taxwriting committees and Congress. I urge that you resist the natural instinct to make this a political exercise. Be bold and detailed in your recommendations.
4. Tax reform must be bipartisan. TRA 1986 was a bipartisan legislative process. This is essential for enactment of major tax legislation that will increase the tax burden on a substantial number of persons...

LEXIS.com subscribers can view more on this and other federal tax issues here.