Cheney Heads to Utah for a Private Speech

The Salt Lake Tribune reports:

Vice President Dick Cheney will speak to a super-secret,conservative policy group in Utah on Friday during his second trip to the state this year.

Cheney will address the fall meeting of the Council for National Policy, a group whose self-described mission is to promote "a free-enterprise system, a strong national defense and support for traditional Western values."

The organization -- made up of few hundred powerful conservative activists -- holds confidential meetings and members are advised not to use the name of the group in communications, according to a New York Times profile of the group.

"The media should not know when or where we meet or who takes part in our programs, before [or] after a meeting,'' a list of rules obtained by The Times showed. The group did not respond to an e-mail seeking comment.

Czech Republic President Václav Klaus is also expected to address the Council for National Policy's meeting in downtown Salt Lake City. After his speech, Cheney will meet with Klaus, the vice president's office said Tuesday.

Former Massachusetts Gov. Mitt Romney, who ran the 2002 Winter Olympics in Salt Lake City, will also be in Utah on Friday but his campaign did not respond to a question about whether he would talk with the group.

Cheney's visit is expected to be short, only a few hours, according to people familiar with the trip's details. The trip coincides with fundraisers in California, Colorado, Nevada and Wyoming, Cheney's spokeswoman Lea Anne McBride said.

All of the events on the trip are closed to the public and the news media, McBride said.

Cheney last visited the state April 26 to give the commencement speech at Brigham Young University.

Club of the Most Powerful Gathers in Strictest Privacy

The New York Times reports:

Three times a year for 23 years, a little-known club of a few hundred of the most powerful conservatives in the country have met behind closed doors at undisclosed locations for a confidential conference, the Council for National Policy, to strategize about how to turn the country to the right.

Details are closely guarded.

''The media should not know when or where we meet or who takes part in our programs, before of after a meeting,'' a list of rules obtained by The New York Times advises the attendees.

The membership list is ''strictly confidential.'' Guests may attend ''only with the unanimous approval of the executive committee.'' In e-mail messages to one another, members are instructed not to refer to the organization by name, to protect against leaks.

This week, before the Republican convention, the members quietly convened in New York, holding their latest meeting almost in plain sight, at the Plaza Hotel, for what a participant called ''a pep rally'' to re-elect President Bush.

Mr. Bush addressed the group in fall 1999 to solicit support for his campaign, stirring a dispute when news of his speech leaked and Democrats demanded he release a tape recording. He did not.

Not long after the Iraq invasion, Vice President Dick Cheney and Defense Secretary Donald H. Rumsfeld attended a council meeting.

This week, as the Bush campaign seeks to rally Christian conservative leaders to send Republican voters to the polls, several Bush administration and campaign officials were on hand, according to an agenda obtained by The New York Times.

''The destiny of our nation is on the shoulders of the conservative movement,'' the Senate majority leader, Bill Frist, Republican of Tennessee, told the gathering as he accepted its Thomas Jefferson award on Thursday, according to an attendee's notes.

The secrecy that surrounds the meeting and attendees like the Rev. Jerry Falwell, Phyllis Schlafly and the head of the National Rifle Association, among others, makes it a subject of suspicion, at least in the minds of the few liberals aware of it.

''The real crux of this is that these are the genuine leaders of the Republican Party, but they certainly aren't going to be visible on television next week,'' Barry W. Lynn, executive director of Americans United for Separation of Church and State, said.

Mr. Lynn was referring to the list of moderate speakers like Gov. Arnold Schwarzenegger of California and former Mayor Rudolph W. Giuliani of New York who are scheduled to speak at the convention.

''The C.N.P. members are not going to be visible next week,'' he said. ''But they are very much on the minds of George W. Bush and Karl Rove every week of the year, because these are the real powers in the party.''

A spokesman for the White House, Trent Duffy, said: ''The American people are quite clear and know what the president's agenda is. He talks about it every day in public forums, not to any secret group of conservatives or liberals. And he will be talking about his agenda on national television in less than a week.''

The administration and re-election effort were major focuses of the group's meeting on Thursday and yesterday. Under Secretary of State John Bolton spoke about plans for Iran, a spokesman for the State Department said.

Likewise, a spokesman for Assistant Attorney General R. Alexander Acosta confirmed that Mr. Acosta had addressed efforts to stop ''human trafficking,'' a major issue among Christian conservatives.

Dr. Frist spoke about supporting Mr. Bush and limiting embryonic stem cell research, two attendees said. Dan Senor, who recently returned from Iraq after working as a spokesman for L. Paul Bremer III, the top American civilian administrator, was scheduled to provide an update on the situation there.

Among presentations on the elections, an adviser to Mr. Bush's campaign, Ralph Reed, spoke on ''The 2004 Elections: Who Will Win in November?,'' attendees said.

The council was founded in 1981, just as the modern conservative movement began its ascendance. The Rev. Tim LaHaye, an early Christian conservative organizer and the best-selling author of the ''Left Behind'' novels about an apocalyptic Second Coming, was a founder. His partners included Paul Weyrich, another Christian conservative political organizer who also helped found the Heritage Foundation.

They said at the time that they were seeking to create a Christian conservative alternative to what they believed was the liberalism of the Council on Foreign Relations.

A statement of its mission distributed this week said the council's purposes included ''to acquaint our membership with those in positions of leadership in our nation in order that mutual respect be fostered'' and ''to encourage the exchange of information concerning the methodology of working within the system to promote the values and ends sought by individual members.''

Membership costs several thousand dollars a year, a participant said. Its executive director, Steve Baldwin, did not return a phone call.

Over the years, the council has become a staging ground for conservative efforts to make the Republican Party more socially conservative. Ms. Schlafly, who helped build a grass-roots network to fight for socially conservative positions in the party, is a longstanding member.

At times, the council has also seen the party as part of the problem. In 1998, Dr. James Dobson of Focus on the Family spoke at the council to argue that Republicans were taking conservatives for granted. He said he voted for a third-party candidate in 1996.

Opposition to same-sex marriage was a major conference theme. Although conservatives and Bush campaign officials have denied seeking to use state ballot initiatives that oppose same-sex marriage as a tool to bring out conservative voters, the agenda includes a speech on ''Using Conservative Issues in Swing States,'' said Phil Burress, leader of an initiative drive in Ohio, a battleground state.

The membership list this year was a who's who of evangelical Protestant conservatives and their allies, including Dr. Dobson, Mr. Weyrich, Holland H. Coors of the beer dynasty; Wayne LaPierre of the National Riffle Association, Richard A. Viguerie of American Target Advertising, Mark Mix of the National Right to Work Committee and Grover Norquist of Americans for Tax Reform.

Not everyone present was a Bush supporter, however. This year, the council included speeches by Michael Badnarik of the Libertarian Party and Michael A. Peroutka of the ultraconservative Constitution Party. About a quarter of the members attended their speeches, an attendee said.

Nor was the gathering all business. On Wednesday, members had a dinner in the Rainbow Room, where William F. Buckley Jr. of the National Review was a special guest. At 10 p.m. on Thursday and Friday, members had ''prayer sessions'' in the Rose Room at the hotel.

Flat tax system imposed on Iraq

U.S. Administrator Orders 15% Rate

The Washington Post reports:

“The highest individual and corporate income tax rates for 2004 and subsequent years shall not exceed 15 percent,” Bremer wrote in Coalition Provisional Authority Order Number 37, “Tax Strategy for 2003,” issued last month.

The flat tax, long a dream of economic conservatives, is finally getting its day — not in the United States, but in Iraq. It took L. Paul Bremer, the U.S. administrator in Baghdad, no more than a stroke of the pen Sept. 15 to accomplish what eluded the likes of publisher Steve Forbes, former representative Jack Kemp (R-N.Y.), former senator Phil Gramm (R-Tex.) and former representative Richard K. Armey (R-Tex.) over the course of a decade and two presidential campaigns.

Voila, Iraq has a flat tax, and the 15 percent rate is even lower than Forbes (17 percent) and Gramm (16 percent) favored for the United States. And, unless a future Iraqi government rescinds it, the flat tax will remain long after the Americans have left.

“It’s extremely good news,” said Grover Norquist, head of Americans for Tax Reform and a Bush administration ally. Bremer’s vaguely worded edict leaves open the possibility that Iraqis could face different levels of taxation below 15 percent, but “they told me it’s a flat rate and it appears as though it’s a flat rate,” Norquist said. The tax fighter added: “It might be a hint to the rest of us.”

NO HISTORY OF PAYING TAXES IN IRAQ

Bremer’s new economic policy for Iraq will slash Saddam Hussein’s top tax rate for individuals and businesses from 45 to 15 percent. Of course, since Hussein’s government, like others in the Middle East, almost never enforced tax collection, there is no real history of paying taxes in the country.

During the more than three decades of Baath Party rule, Hussein ran a centrally controlled economy with most large businesses owned or operated by the state. The government also managed the import of most goods.

John B. Taylor, undersecretary of the Treasury for international affairs, said the Iraq flat tax was discussed before the war as preliminary planning was done with the help of some Iraqi exiles.

After major combat ended, the discussions continued with Iraqis in Baghdad, with emphasis on tax policies adopted by other countries making the transition from controlled economies. “One was Russia and subsequently Ukraine, where we heard good things after flat taxes were adopted,” Taylor said.

On Sept. 22, Bremer told the Senate Appropriations Committee: “Iraq’s new tax system is admirably straightforward. The highest marginal tax rate on personal and corporate income is 15 percent.”

Iraq’s new finance minister, Kamil Mubdir Gailani, is considered a follower of Ahmed Chalabi, the Western-oriented banker who has closely adhered to the Bush administration’s economic policies, according to one expert on the Iraqi economy. Gailani presented the new Iraq finance program, including the flat tax, at a recent international meeting.

“A piece of social engineering is being done on Iraq, but it has almost no support from other members of the U.S.-appointed Iraqi Governing Council,” said a Middle East expert who heard Gailani’s presentation.

Proponents of the flat tax have long favored this kind of tax system for Iraq. Without much of a framework to start with, Iraq “need not worry about all the political and transition problems that have made adoption of fundamental tax reform here so difficult,” Bruce Bartlett, an economist in the Reagan and first Bush administrations, wrote this spring. “It is gratifying, therefore, that leaders of the new Iraq are said to be looking at a flat rate tax system for their country.”

RUSSIA SEEN AS A MODEL FOR IRAQ

Bartlett, once an aide to Kemp and now with the National Center for Policy Analysis, said the model for Iraq should be Russia, which in 2001 set a 13 percent flat tax on individual income. The Bush administration, still disturbed by much higher tax rates here, has said it admires Russia’s flat tax. Russia “understands the importance of getting the tax structure right in your economy,” Commerce Secretary Donald L. Evans told the conservative Heritage Foundation last year.

President Bush, in Russia last year to see President Vladimir Putin, said: “The good news is that the flat tax in Russia is a good, fair tax — much more fair, by the way, than many Western countries, I might add.”

“At the previous 40 percent to 50 percent, Russian people were evading,” said one economist familiar with the area. “Now at a lower rate they are paying because the penalties are so heavy.”

Conservatives have similarly celebrated Bremer’s move in Iraq. “Such low rates will put Iraq on a par with Hong Kong and flat-tax-land Russia,” editorialist Amity Shlaes wrote in the Financial Times. “They contrast favorably with the onerous regimes of some neighbors.”

American flat-tax advocates have made little headway at home, in part because Democrats say it would disproportionately hurt lower-income Americans and because expensive tax breaks such as the deductions for mortgage interest and charitable donations are beloved in both parties. But in places such as Russia, the Baltic states and Iraq, there was no well-established tax code defended by an army of lobbyists. “Somehow, it’s easier when you start from scratch,” Norquist said.

The 15 percent rate does not take effect until January. In the meantime, Bremer has abolished all taxes except for real estate, car sales, gasoline and the pleasantly named “excellent and first class hotel and restaurant tax.” Even while leaving these Hussein-era levies in place, Bremer exempted his coalition authority, the armed forces, their contractors and humanitarian organizations. Exempting occupation personnel leaves only the Iraqis to pay taxes, as well as journalists, businesspeople and other foreigners.

Looking back at the failed attempt by presidential candidate Forbes to rally U.S. public support behind the flat tax, Gene Sperling, a senior Clinton economic adviser who is with the Council on Foreign Relations, said wryly, “If Steve Forbes does a bus tour [of Iraq] to promote it, I hope they have adequate security."