Greenspan Says Lawmakers Should Let All Bush’s Tax Cuts Lapse

[sabra]

Source: Bloomberg

July 15 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan, whose endorsement of George W. Bush’s 2001 tax cuts helped persuade Congress to pass them, said lawmakers should allow the cuts to expire at the end of the year.

“They should follow the law and let them lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit.

Greenspan’s comments, to be broadcast tomorrow and over the weekend, place him in the middle of an election-year struggle over extending trillions of dollars of tax cuts enacted under Bush.

...

Ending the cuts “probably will” slow growth, Greenspan, 84, said in the TV interview. The risk posed by inaction on the deficit is greater, he said.

“Unless we start to come to grips with this long-term outlook, we are going to have major problems,” said Greenspan, who led the U.S. central bank from 1987 to 2006. “I think we misunderstand the momentum of this deficit going forward.”

Read more: http://www.businessweek.com/news/2010-07-15/greenspan-says-lawmakers-should-let-all-bush-s-tax-cuts-lapse.html

[SpiralHawk]

1. "Noooo - not that. More more more tax cuts for rich republicons." - Rush DraftDodger Limbaugh (R)

"More more more more more MORE MORE MORE more more more more
for rich republicons."

- Rush DraftDodger Limbaugh (R)

[HughBeaumont]

2. . . . broken clock . . . twice a day . . .

Should have repealed these disastrous cuts this year or last year.

[BootinUp]

3. Did they ask him why anyone in their right mind

would trust his opinion?

[Enthusiast]

8. Yeah. Now I have doubts

about allowing the tax cuts to expire. :rofl:

Not really.

[bluestateguy]

4. It's going to be hard enough to let the tax cuts expire for the $250,000+ crowd

You're going to have a really hard time convincing a teacher or a police officer who makes $45,000 a year to pay more in taxes.

Let the tax cuts for people at the top--and only those at the top--expire.

[AlbertCat]

10. Let the tax cuts for people at the top

Nah... let 'em all expire.


Then introduce new tax cuts that help the demographic you mentioned.

Take credit for that.



Still...tax cuts during 2 wars? Ridiculous. It's time to start acting like we are fighting 2 wars. Tax increases and a draft! The wars will be over in...oh...45 minutes maybe?

[karynnj]

5. He spent the 1990s telling Clinton not to end spending - pay down the debt - then pushed the Bush

cuts.

Going back further - he told Clinton and the Congress not to regulate derivatives and credit swaps and pushed to end Glass- Stegall

Going back before that - he pushed the increase in FICA taxes to make SS secure for the baby boomers - and had no problem with not keeping their surplus from the general budget - instead allowing the SS money paid by everyone to fill in for money not collected due to the Reagan tax cuts.

Somehow this seems almost "Sympathy for the Devil"ish as he was "around" for many of the bad financial decisions.

[Tace]

9. What He's Done All Along Is To Have Democrats Raise Taxes And Cut Spending

He's worked to help Republicans spend while they are in office, and for Democrats to use their political capital to raise taxes and cut spending... so that there's something for Republicans to spend on the Republican agenda when they get into power. He's as transparent as a window pane.

[on point]

6. By "We misunderstood" you mean YOU fucked up. Right?

Anyone with a modicum of economic sense could see what a fraud and shill he was. He offered only disaster for the country and now it has come home to roost.

I like the use of "we misunderstood", instead of what he really means ":I misunderstood".

[underpants]

11. I thought they (banks) would do a better job of regulating themselves"

That is the essence of his apologetic testimony in the midst of the financial meltdown

[Roland99]

7. Greenspan should have listened to O'Neill and kept the triggers to a surplus

[kpete]

12. Greenspan Says Lawmakers Should Let All Bush’s Tax Cuts Lapse

Source: Bloomberg

Greenspan Says Lawmakers Should Let All Bush’s Tax Cuts Lapse
July 15, 2010, 2:50 PM EDT


July 15 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan, whose endorsement of George W. Bush’s 2001 tax cuts helped persuade Congress to pass them, said lawmakers should allow the cuts to expire at the end of the year.

“They should follow the law and let them lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit.

Greenspan’s comments, to be broadcast tomorrow and over the weekend, place him in the middle of an election-year struggle over extending trillions of dollars of tax cuts enacted under Bush.

President Barack Obama campaigned for election in 2008 on a promise of extending the Bush tax reductions for families earning up to $250,000 while eliminating the cuts for higher- income Americans, a position also embraced by most congressional Democrats. Republicans have pressed for continuing the cuts for higher-income families, arguing that a weak economy is no time for a tax increase.

Read more: http://www.businessweek.com/news/2010-07-15/greenspan-says-lawmakers-should-let-all-bush-s-tax-cuts-lapse.html

[Demeter]

13. A Deathbed Confession?

Maybe his retainer check was delayed....

[Jim Sagle]

16. Blindly groping for a stairway to Heaven...

[ck4829]

14. K&R

[Historic NY]

15. Of course keeping them will increase the deficit by 3.3 trillion we we don't need....

Bush gave away money by the $300 & $600 checks that did nothing to help the stimulate the economy. The Republicans contend that tax cuts would but they did nothing. Republicans contend unemployment benefits just makes people lazy and they won't look for work. The experts stay these benefits will stimulate the economy because people spedd them readily to survive. Conclusion, Republicans don't want you to survive if you poor or have no money. Their answer as Grayson would say is just die.

[nykym]

17. So in a way we can say

that republicans have created the dreaded "DEATH PANELS"!

[Historic NY]

20. Yes, we have a winner!!!!

[w4rma]

18. Of course Greenspan wants the middle and lower tax cuts to lapse.

I suppose he couldn't figure out a way to say that and also say that we should keep the tax cuts for the very wealthy, also.

[Roland99]

19. dupe

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4466370

[Joanne98]

21. Greenspan Calls for Congress to Let All Bush Tax Cuts Expire

Source: Bloomberg

July 16 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan, whose backing of George W. Bush’s 2001 tax cuts helped persuade Congress to pass them, said lawmakers should allow the reductions to expire at the end of this year.

“They should follow the law and let them lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit.

The former U.S. central bank chairman also said the economy is in “a temporary slump” and would emerge with a “sluggish” 3 percent growth rate in the second half of the year. He said banks’ lending will remain constrained because financial markets are pressing them to maintain higher capital levels and predicted the Wall Street regulatory measure the Senate passed yesterday will reduce credit available for low- income consumers.

Greenspan’s comments on taxes, to be broadcast today and over the weekend, place him in the middle of an election-year struggle over extending Bush’s trillions of dollars of tax cuts.


Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aEeVCfvuQ6U0&pos=5

[ck4829]

22. K&R

[valerief]

23. I guess now the media will be telling us Greenspan has dementia. nt

[Zorra]

24. Prophetic statement by 450 economists back in 2003:

The statement reads as follows: <3>
Economists' statement opposing the Bush tax cuts

Economic growth, though positive, has not been sufficient to generate jobs and prevent unemployment from rising. In fact, there are now more than two million fewer private sector jobs than at the start of the current recession. Overcapacity, corporate scandals, and uncertainty have and will continue to weigh down the economy.

The tax cut plan proposed by President Bush is not the answer to these problems. Regardless of how one views the specifics of the Bush plan, there is wide agreement that its purpose is a permanent change in the tax structure and not the creation of jobs and growth in the near-term. The permanent dividend tax cut, in particular, is not credible as a short-term stimulus. As tax reform, the dividend tax cut is misdirected in that it targets individuals rather than corporations, is overly complex, and could be, but is not, part of a revenue-neutral tax reform effort.

Passing these tax cuts will worsen the long-term budget outlook, adding to the nation’s projected chronic deficits. This fiscal deterioration will reduce the capacity of the government to finance Social Security and Medicare benefits as well as investments in schools, health, infrastructure, and basic research. Moreover, the proposed tax cuts will generate further inequalities in after-tax income.

To be effective, a stimulus plan should rely on immediate but temporary spending and tax measures to expand demand, and it should also rely on immediate but temporary incentives for investment. Such a stimulus plan would spur growth and jobs in the short term without exacerbating the long-term budget outlook.

http://wapedia.mobi/en/Economists'_statement_opposing_the_Bush_tax_cuts

Al, you're a day late and about ten trillion dollars short.

[Roland99]

25. dupe

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4466370

[No Elephants]

26. Apparently, he's able to feel guilt and shame. Huh.

[Statistical]

27. I notice he didn't say just cuts for the rich. People forget there were real cuts for middle class.

Looks like Mr Green wants all the cuts to expire and that means real pain for those who are poor or middle class.

Have a kid? It will cost your $400 more per kid per year. Tax credit goes from $1000 back to $600.
Married? Ouch marriage penalty comes back. Expect to pay roughly 15%-30% more in taxes then you did this year.
Have at least $8,000 in taxable income? That's will be $400 more. 10% bracket reverts to 15% bracket.
Are you currently in 25% bracket? That jumps to 28%. Add 3% of any taxable income above $34,000 to your bill.

Now it isn't millions like the rich got but it is real money especially when budgets are tight.
Depending on income, marital status and kids middle class can be looking at a real and significant tax increase.

[ozone_man]

28. Ah, so deficits do matter after all.

Who could have known?