NEW YORK (Reuters) – Taxes must rise while fiscal stimulus needs to be wound down in order to reduce the U.S. budget deficit and allow private investment to expand, said former Chairman of the Federal Reserve Alan Greenspan on Wednesday.
"I am in favor for the first time in my memory of raising taxes," Greenspan told an audience at the Council on Foreign Relations in New York
He warned that the deficit, swollen by massive stimulus spending, was crowding out capital investment. We "must find a way to simmer down fiscal activism and allow the economy to heal," he said, adding that that stimulus spending had been far less successful than anticipated.
Bush era tax cuts are set to expire at the end of this year. President Obama says he wants to cap taxes on middle and lower income households but allow taxes rates to revert to higher levels for the wealthy.
Answer by lovinangels at 1:14 PM on Sep. 15, 2010
How can they keep the Bush tax cuts on the middle class & the poor? I remember you Dem's hollering that Bush was only giving tax cuts to the rich.
You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.
Go ahead raise the taxes on the people that create the jobs, if you think the economy is bad now, just wait. Watch the unemployment go up even higher.
Answer by Natesmom507 at 1:56 PM on Sep. 15, 2010
Answer by May-20 at 2:45 PM on Sep. 15, 2010
Answer by LoriKeet at 4:43 PM on Sep. 15, 2010
You need to read the constitution, the number one job of the federal government is to provide for the defence of the country. There is nothing in there about providing entitlement programs.
Answer by Natesmom507 at 5:50 PM on Sep. 15, 2010
...................and watch more jobs be taken to China.
Mr. Greenspan ain't the only game in town.
Answer by mustbeGRACE at 1:32 PM on Sep. 15, 2010
Answer by NotPanicking at 7:02 PM on Sep. 15, 2010
yes, I am sure we can tax ourselves right into prosperity;)
Answer by Anonymous at 1:49 PM on Sep. 15, 2010
Answer by itsmesteph11 at 4:34 PM on Sep. 15, 2010
Answer by Farmlady09 at 4:51 PM on Sep. 15, 2010