Transcript: Karl Rove on 'FOX News Sunday' (with Chris Wallace)
http://www.foxnews.com/story/0,2933,137853,00.htmlWALLACE: I know you had nothing to do with it, but now that the campaign's over, the Swift Boat ads, how important?
ROVE: Well, I think they were made important by the fact that Senator Kerry at his convention really talked about not his forward- looking agenda or his service in the Senate, but really only about Vietnam. I was amazed by the people that I met around the country who were energized by that issue being discussed. I had an uncle, a favorite uncle of mine, who did several tours of duty in Vietnam, and I've never been able to think of Colonel Verhigh (ph) as somebody who would have raped and pillaged in a manner reminiscent of Genghis Khan. And so I have a sense of it, but, I mean, I was really amazed by how strongly men and women who had served in Vietnam and in the armed forces felt about that.
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WALLACE: But when you say "revisit the code," I mean, would he consider, seriously consider, in a second term, replacing the federal income tax with a sales tax or a flat tax?
ROVE: Well, he believes we need to step back and look at the code in its entirety and discuss and have a dialogue as to what is necessary to keep this economy flexible and dynamic and growing. How can we encourage savings? How can we encourage ownership? How can we encourage a dynamic, growing economy, and do so in a fair way that requires a minimum amount of paperwork and compliance costs? Look, we need to recognize that our economy faces some real challenges. Our competition for American business is no longer in the next county or the next state, it's around the world. And if we're going to keep our economy dynamic and growing and the economic powerhouse of the world, then we better do something about our tax code, better do something about the excessive litigation, better do something about health-care costs, better do something about our education system, better do something about lifetime opportunities for training, or we'll not have an economy that is as strong and as plentiful as we want for our kids and grandkids.