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Article I, sec. 3 of the US Constitution provides:
Judgment in Cases of Impeachment shall not extend further than to removal from Office, and disqualification to hold and enjoy any Office of honor, Trust or Profit under the United States: but the Party convicted shall nevertheless be liable and subject to Indictment, Trial, Judgment and Punishment, according to Law.
If Rove were to be impeached and convicted, he could be barred from holding any federal “Office of honor, Trust or Profit.” This would prevent Bush or any future administration from hiring him back.
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As I’ve already, said, that’s meaningless. Rove’s power is that he has the ear of the President. He’s an advisor, meaning his power is based on how much Bush is willing to listen to him. During the administration of President Andrew Jackson, Jackson had a big problem with most of his Cabinet. Back then, the Executive Office of the President and its various functionaries that now hold most power in an administration wasn’t important politically, instead Presidents met with their cabinet officers pretty regularly to make important decisions. Throughout the 20th century, Presidents have moved away from this approach, and consequently even the most powerful cabinet officer can theoretically have less influence in the administration than the Chief of Staff. It all depends on how much the President is willing to bring people in on decision making.
In recent years, the cabinet officers have just been mostly responsible for running their own little fiefdoms, and less involved day-to-day with advising the President. In Jackson’s administration, cabinet officers were a key part of much of the decision making process. But Jackson didn’t like his cabinet, so he fired pretty much every single person in it (even his political allies.) Instead of relying on his new cabinet officers for advice, he instead met with a group of political allies (most of them private citizens) very regularly for advice on matters of policy, this group was referred to as the “Kitchen Cabinet.” The President can meet with whoever he wants, and they can serve the same function that Rove serves right now without being on any government payroll.
Rove has been a Senior Advisor to the President and is currently the Deputy Chief of Staff. Both of these positions have very little statutory power at all, far less than any of the cabinet level-positions, for example. However, since persons in these positions have personal contact with the President on a very regular basis, that means they can in effect have an enormous impact on policy. While I’m loathe to reference a fictional television show, watch old episodes of the West Wing some time. The key players in the show are the President, his Chief of Staff, and then people who serve in the Executive Office of the President. Cabinet officers are almost never shown on screen, and when they are it is as one or two episode guests. That is, in general, a realistic approach for makers of a television show to take, at least when dealing with the past several Presidencies, it is the Presidents personal staff who wields much of the power, not the cabinet.
Bush has had a greater level of direct contact with cabinet officers than several of the last Presidents, and his original Chief of Staff (Andrew Card) was one of the weakest in the last forty years or so. But the preponderance of power still lies with those who have the President’s ear. So Rove can continue to do exactly what he does now as a private employee of George W. Bush the man, or as a completely private citizen. His position of Deputy Chief of Staff affords him no special powers that he wouldn’t have if he were simply an outside advisor to the President.
Also, being impeached is not automatically a bar to future office, it is up to the discretion of the Senate when they remove someone as to whether or not said person is barred from holding future office (although we can probably assume that such barring would be virtually certain.)