This NY Times story from Daniel Altman is yet another heads-up on what to expect in Bush's second term. Almost all the proposals on the table have two things in common: they will more income inequality, and they will reduce the tax base, thus requiring the Administration to cut spending somewhere or suffer larger deficits.

What is discussed in this brilliant summary of possible tax reforms:

Privatization of Social Security: President Bush said he wants to give workers an opportunity to divert part of their payroll taxes to individual investment accounts, in the hope that the financial markets would pay higher returns than the existing Social Security system.

Abolishing the Tax on Dividends: The White House sought to eliminate this form of "double taxation" in 2003. In the end, Congress cut tax rates on dividends and capital gains, but didn't abolish the taxes.

By the way, the idea of abolishing dividend tax is new to me. If it becomes a reality, it will really challenge lots of the commonplace thinkings about investment.