Sign me up for (most of) Kevin Drum’s proposal: a non-revenue-neutral carbon tax to plug the deficit hole and shore up Social Security while eliminating the corporate tax. I wouldn’t go for cutting top income tax rates, and I’d want to phase in the carbon tax slowly to avoid a fiscal shock during the recession and to give private parties a pre-determined glide path for adaptation.
Note that if it pushes up expected prices for the future, that would provide some macro boost as a cherry on the sundae.
But should Obama say it tomorrow? Well, it would lock down the crucial undecided environmentalist policy-wonk vote, especially in key swing states such as Massachusetts and California. Might not play so well in Virginia and Ohio.