The Washington Post reports today that Sen. John McCain is out there on the campaign trail criticizing President Bush in order to deal with the Obama media attack linking Big Mac to W. Apparently McCain is criticizing Bush and Paulson as bailing out the banks rather than buying up underwater mortgages to help homeowners avoid foreclosure.

Okay, fine. I think Paulson’s three-cornered plan to recapitalize banks, buy up toxic assets, and guarantee short-term inter-bank loans in London and New York is the right policy. And since surfacing two weeks ago, the rescue plan is actually helping boost the stock market. But if McCain wants to go there on mortgages, then go there.

However, the senator could distance himself from President Bush in other ways that might resonate with the investor class — the important voting bloc that McCain needs to win by 10 points but is now running even.

For example, until very recently the Bush dollar kept sinking. So why doesn’t McCain distance himself from Bush by supporting a King Dollar that will attract global investment for job creation, hold down inflation, and improve America’s standing around the world? Sen. McCain also could tout across-the-board pro-growth tax reform, such as Paul Ryan’s idea of 10 percent and 25 percent marginal tax rates.

Economic emergencies require strong medicine, and tax reform along with currency reform is consistent with McCain’s message that he will be a real Washington reformer. There’s also McCain’s plan to reform the corporate tax. In this case, McCain’s rate-slashing idea can be sold as a jobs and wages booster and as a tax-cut for ordinary consumers who pay most of the higher corporate tax that is passed along to them.

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These would be very strong economic-recovery ideas that are separate and apart from the Bush policies and have a strong reform message.

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