Skip to comments.Greenspan: Let Bush tax cuts expire
Posted on 07/16/2010 9:22:21 AM PDT by Signalman
LONDON (CNNMoney.com) -- Former Federal Reserve chief Alan Greenspan believes Congress should let the tax cuts enacted by President George W. Bush expire for all Americans in order to address the widening deficit, according to a TV interview airing Friday.
"They should follow the law and let them lapse," Greenspan told Bloomberg TV's Judy Woodruff.
The 2001 and 2003 tax cuts are due to expire at the end of the year. President Obama had promised to make them permanent for families making less than $250,000. (Read 'Bush tax cuts up in the air')
But faced with growing fiscal challenges, there's debate in Washington about whether the country can afford to permanently extend the tax cuts.
Greenspan, who backed the tax cuts when they were enacted, told Woodruff that allowing the cuts to lapse "probably will" slow growth, but that the risk posed by doing nothing about the deficit is greater.
(Excerpt) Read more at money.cnn.com ...
I always new this guy was part of the problem not the solution. IMO he is not and never has been the financial guru he was hyped up to be. He’s like Obama, he just had a way of speaking that made him sound like he knows what he is doing.
One more thing, Hey Mr. Greenspan. Want to do something about the deficit?
How about STOP SPENDING!
And we should listen to Bubble Greenspan why?
I totally agree with you, Alan.
In fact, we should just confiscate the wealth of all Americans. I mean, we just have to get this deficit down, ‘cause we’ve got some really important spending to do.
Hugh Hefner is recently behaving as if he knows the Bush tax cuts are going to expire.
Just what I would expect Mr. Andrea Mitchell to say.
Yes, obama, follow the advice of CLINTON/BUSH ADVISOR Alan Greenspan
You have a 20 year track record of results based on his advice...all leading to 2008 and today!
You know, if he would add that all government spending were to be STOPPED and REDUCED in conjunction with the pending tax increase, I’d at least give him some credit.
Of course, the “increase in revenue” (that will not happen in the long term) will only be blown on more nonsense. Even if there is no “increase in revenue”, it’ll still be blown anyway.
What exactly does letting the tax cuts expire accomplish? There’ll be less revenue to the Treasury due to lack of growth and more spending by the kleptocrats.
Yet, some people still consider him a genius. He needs to be flushed down once and for all.
greenteeth was as big a part of this failed economy as obama is and was. Anyone married to a she devil like he is has no sense and is mentally defective... MR ANDREA MITCHELL GREENTEETH.
Greenspan officially jumped the shark in Bob Woodward’s homage, “Maestro.”
To wit: Woodward relates that Greenspan had to propose twice to his wife, the violinist-turned-TV news star Andrea Mitchell, before she understood: “His verbal obscurity and caution were so ingrained that Mitchell didn’t even know that he had asked her to marry him.”
Now he is speaking clearly and we find the Emperor has no clothes. Time for the Maestro to reread Ayn Rand in daily bathtub routine.
Decade old “tax cut” and they claim they aren’t “raising” taxes or adding “new” taxes.
I suppose that the JFK tax cuts were only “temporary” too then.
How about we just declare a “year of Jubilee”. Abolish all the hard earned debt the irresponsible Democrats work so hard to enslave us with?
How about we just confiscate all the wealth of every person who ever contributed to Democrats? Let those really wealthy creeps see what it is like to have to earn their living.
The idea that a general income tax cut will increase revenue due to growth is false and, to my knowledge, is not supported by any serious economic study. Read the analysis at http://www.econdataus.com/taxcuts.html and tell me what specific numbers or conclusions you disagree with. Alternately, provide a link to one serious economic study that purports to show that general income tax cuts increase revenues over what they would have been otherwise.
However, I agree that there is a danger that any increased revenues from the expiration of the tax cuts will go to increased spending. Neither party has shown itself to be fiscally responsible when presented with increased revenues. In any case, there is likely little chance that all of the Bush tax cuts will be allowed to expire. The increased child credit, the so-called elimination of the marriage penalty, and the new 10 percent tax bracket will likely survive. I have long thought that the Bush "tax cuts for the rich" would likely morph into a middle-class tax cut. That's the danger of passing an unsustainable tax cut.