Edward Lazear, professor at the Graduate School of Business and senior fellow at the Hoover Institution, has been appointed to the President’s Advisory Panel on Federal Tax Reform.

Lazear has taught at the Business School since 1992 and will continue to do so during his six-month tenure on the panel. He has also served as president of the Society of Labor Economists and the founding editor of the Journal of Labor Economics. He has authored the book “Personnel Economics.”

Yet none of these issue-specific achievements were responsible for his appointment to the panel on tax reform, Lazear said. In fact, it was his lack of official background on the issue of tax economics that helped him win the post.

“I don’t have any predetermined, staked-out position [on tax reform] — I’m completely open,” Lazear said. This kind of objectivity is just what President George W. Bush needs from the members of the panel, he said.

In the executive order that established the tax advisory panel, Bush outlined its purpose as threefold.

It was created to “share the burdens and benefits of the Federal tax structure. . . while recognizing the importance of homeownership and charity in American society,” as well as to “promote long-run economic growth and job creation. . . so as to strengthen the competitiveness of the United States in the global marketplace.”

But, most importantly, the tax panel will be charged with simplifying the existing federal tax laws.

Lazear said that “complications [in the tax system] cost a significant amount of resources,” estimating that as much as 10 percent of what is collected gets needlessly spent on the administrative burden of complying with convoluted tax laws.

According to Bush’s executive order, the panel must submit its advisory report to his office by July 31, 2005, and its existence will terminate soon after.

Until then, Lazear expects to be stretched somewhat thin between his Stanford commitments and his responsibility to the President.

“There’s no question that my research speed will be somewhat reduced, but I think the assignment is an important one - it’s something that can significantly help the state of the country,” he said.

Dean Robert Joss of the GSB said he is not too worried about Lazear being distracted from his work at Stanford.

“These kinds of things come up from time to time,” Joss said. “I think it’s important for people with expertise to provide that expertise in the national interest.”

Joss added, “[Lazear] is the type of person that will make time for everything, all of his interests. He’s certainly a good choice, because he’s certainly an international leader in the field.”