Alan Greenspan: Extending Bush Tax Cuts Without Paying For Them Could Be 'Disastrous'

[laughingliberal]

Former Fed Chairman Alan Greenspan said that the push by congressional Republicans to extend the Bush tax cuts without offsetting the costs elsewhere could end up being "disastrous" for the economy.

In an interview on NBC's "Meet the Press," Greenspan expressed his disagreement with the conservative argument that tax cuts essentially pay for themselves by generating revenue and productivity among recipients.

"They do not," said Greenspan.

"I'm very much in favor of tax cuts but not with borrowed money and the problem that we have gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money," he said. "And at the end of the day that proves disastrous. My view is I don't think we can play subtle policy here."

The comments from the former Fed chief were an elaboration of a position he outlined in an interview earlier in the week. Speaking with PBS' Judy Woodruff, Greenspan expressed his opposition to passing legislation that would hold tax rates steady (under law the tax cuts Bush passed ten years ago are going to expire, thereby bringing rates back to Clinton-era levels). President Obama has pledged to continue the tax breaks for those individuals making under $200,000 and those families earning less than $250,000.

Read more: http://www.huffingtonpost.com/2010/08/01/alan-greenspan-extending_n_666549.html

[villager]

1. "Even more disastrous," he means?

n/t

[laughingliberal]

5. Sounded as if that's what he meant. He was dead set against extending them.

I believe Greenspan was a sincere 'true believer' in Reaganomics who had a really rude awakening. Sad it came too late.

[indepat]

9. The offsetting the costs elsewhere meme Greenspam chants, should someone not realize that source,

would it be a reduction in defense spending or, rather, perhaps entitlements, i.e., social security and Medicare? Inquiring minds want to know. :P

[napi21]

12. Is it POSSIBLE that Greenspan really DID learn a lesson

from the disasterous assumption he made when Fed Chairman that businesses really can police themselve? It kinda sounds like he did.

As for reducing entitlements, that's BS! If the amount collected is not covering the expenses, then the witholding should be incresed not decrease the benefits!

[indepat]

13. Me thinks Greenspam's colors have not changed and I've no doubt he champions the egregious cuts in

future benefits the RW-loaded Deficit (Cat food) Commission is cooking up to the detriment of a generation of American workers. :P

[laughingliberal]

17. I'd like to know...I will say, though, it was shocking to hear him on MTP talking about recovery...

only at the top. He did make noises about the fact that this has not been a recovery for most Americans. Did not sound, at all, like a Republican.

[Dawn40]

2. I don't think that Republicans care

For instance, job growth since the Bush tax cuts has been negative, not positive. Why doesn't this bother those people?

[qazplm]

8. those people

have a cognitive dissonance.

Tax cuts bring jobs and wealth. They believe that. So the reason why we had the Bush years must be some other reason, and so they look for "facts" that fit that hypothesis and ignore reality.

[Turbineguy]

10. If the facts

don't fit in with your doctrine, change the facts.

It worked so well for the Soviet Union, the repubs want to do it here.

[Ernesto]

3. What a wishy-washy sicophant. nt

[marmar]

4. Greenspin is trying to resurrect the Titanic.....The Titanic in this case being his tattered rep.

nt

[laughingliberal]

6. That may well be it. But I think even he was shocked at how badly things turned out. nt

[Chulanowa]

16. I would say "better late than never"

But he's not late; he missed the damn boat entirely.

[Richardo]

7. We had the greatest economic expansion ever with 'Clinton-era' tax rates.

I fail to see the GOP's argument here. As usual.

[Turbineguy]

11. The Bush tax cuts

were not about economic expansion. They were about transferring wealth. The economic expansion, what there was, came from low interest rates and borrowing.

[Richardo]

15. Right, but the argument we're hearing is that it's an economy-killer to recind the tax cuts.

[laughingliberal]

18. Yes, same old right wing lie. The middle class boomed under very high top rates pre-Reagan.

The supply side tax cut orgy experiment has failed miserably and it is past time to put a bullet through its working/middle class destroying lies.

[rrneck]

14. Hey, Dick Fucking Tracy,

Shut the fuck up you Ayn Rand acolyte, disaster capitalist, free market, Reaganomics promoting son of a bitch. You are irrelevant. Continue your journey into obscurity.

I guess I'm in a bitchy mood today...

[BrklynLiberal]

19. um..Where was your voice when it could have meant something? A-hole.

[laughingliberal]

20. Yeah. I'm thinking, "You picked a fine time to tell me, Louise..." nt

[Richardo]

21. "Lucille"

:D