Greenspan Endorses Tax Cuts
WASHINGTON (AP) - Federal Reserve Chairman Alan Greenspan gave a major boost Thursday to President Bush's plan for across-the-board cuts in taxes, and at the same time he warned of threats posed by the dramatic economic slowdown...
Testifying before the Senate Budget Committee, Greenspan said rapidly expanding federal surpluses, which by one estimate will total $5 trillion over the next 10 years, offer ample room both to provide tax relief and to eliminate more than $3 trillion in national debt held by the public.
By endorsing the economic soundness of cutting taxes, Greenspan bolstered Bush's efforts to build support in Congress for his 10-year, $1.6 trillion tax-reduction package.
While there can be various reasons to adjust taxes, he said, ``if you're asking strictly on the question of what is likely to contribute to maximum economic growth on average, then clearly tax reductions, which reflect lower marginal rates, will in the view of most economists be the appropriate direction in which we ought to go.''
A tax cut is not an economic tonic to prevent a recession, he said, because it takes time to implement. Lower taxes would serve as a cushion, helping to stimulate spending and investing, if needed by the economy to restore growth to acceptable levels.
jjm, besides getting facts wrong, your juvinile tendency to mangle politicians names, you were wrong in your assumption also.
WASHINGTON (AP) - Federal Reserve Chairman Alan Greenspan gave a major boost Thursday to President Bush's plan for across-the-board cuts in taxes, and at the same time he warned of threats posed by the dramatic economic slowdown...
Testifying before the Senate Budget Committee, Greenspan said rapidly expanding federal surpluses, which by one estimate will total $5 trillion over the next 10 years, offer ample room both to provide tax relief and to eliminate more than $3 trillion in national debt held by the public.
By endorsing the economic soundness of cutting taxes, Greenspan bolstered Bush's efforts to build support in Congress for his 10-year, $1.6 trillion tax-reduction package.
While there can be various reasons to adjust taxes, he said, ``if you're asking strictly on the question of what is likely to contribute to maximum economic growth on average, then clearly tax reductions, which reflect lower marginal rates, will in the view of most economists be the appropriate direction in which we ought to go.''
A tax cut is not an economic tonic to prevent a recession, he said, because it takes time to implement. Lower taxes would serve as a cushion, helping to stimulate spending and investing, if needed by the economy to restore growth to acceptable levels.
jjm, besides getting facts wrong, your juvinile tendency to mangle politicians names, you were wrong in your assumption also.