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

[babylonsister]

I know, who cares, but maybe the conservatives are listening?


Sam Stein
[e-mail] | HuffPost Reporting

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


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."

more...

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

[pscot]

1. I hope the Democrats

are smart enough to run with this.

[lib2DaBone]

2. Exactly.. I hope the DEMS run with this...

.. but I won't hold my breath...

[MilesColtrane]

3. It's OK, Alan.

Nobody remembers what you said ten years ago...least of all you.

Greenspan Says Tax Cuts Could Help American Economy

WASHINGTON (CNNfn) - Federal Reserve Chairman Alan Greenspan gave his broadest endorsement of tax cuts to date Thursday, while also indicating that the U.S. economy has slowed dramatically, raising investors' hopes that further interest rate reductions are on the horizon.

...the Fed chairman's backing of tax cuts as economically sound likely will provide a boost to the new administration's proposals.

However, Greenspan played down the idea that tax cuts would provide an immediate boost to the economy, saying that tax reduction is appropriate as a long-term economic measure now because of estimates of a larger-than-expected federal surplus.

...Greenspan said government estimates project more than enough surplus funds to pay off the debt and reduce taxes too. These projections have convinced him that it is sound to proceed with a tax cut now, said Douglas Lee, president of Economics from Washington, an economics consulting firm.

[MilesColtrane]

4. kick

[Jeffersons Ghost]

5. K&R