Bush has named Goldman Sachs CEO Henry M. Paulson to replace John Snow as Secretary of Treasury. The other shoe finally dropped when John Snow resigned Tuesday. Rumors of Snow’s resignation have been circulating since December 2004 when HHS Secretary Tommy Thompson stepped down.

Secretary of the Treasury John Snow is will be stepping down from his position sometime over the next few days, he has told the White House. He plans to stay no later than July 3. Snow, a former railroad executive who a source says is excited to get back to the private sector, has been little more than a yes-man for this administration's policies. He has enthusiastically promoted extremely regressive business tax breaks and has done little to proactively fight what is turning into a cycle of continuing budget deficits. Director of Federal Fiscal Policy at OMB Watch Adam Hughes has stated:

It turns out that a seemingly small budget cut to the IRS results in lost tax revenue many times over. Senate Finance Committee ranking member Max Baucus estimated earlier this week that a 1 percent cut to the 2006 IRS budget -- an amount of $100 million -- will actually cost the Treasury roughly $1 billion in lost tax collections. As Commissioner Mark Everson reported earlier this month, and as a GAO report from 2003 indicated, each dollar spent raises approximately $11 - $13 of revenue. Sen. Baucus stated,

We’ve been looking at the costs of the president’s border security plan and its impact on the emergency spending bill making its way through Congress. Bush would have the money for his border plan be offset by reducing some military spending, but that begs the question: where else can Congress find almost $2 billion in a $94 billion bill?