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agree with Greenspan?

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.


Asked by sweet-a-kins at 1:12 PM on Sep. 15, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
This question is closed.
Answers (41)
  • I was just going to post this. I'm for cutting spending first, down to the bones. Then if necessary, raise taxes.

    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

  • Cut spending to the bare bones. Run the WH and Congress on a shoestring budget. No fancy anything for the duration out of government funds. No pet projects, no pork or entitlements. Dismantle all government agencies that are not worth keeping (Dept. of Ed., for example). Nothing except necessary spending as mandated by the Constitution.

    If that's still not enough money, then and only then, do you consider raising taxes.

    That's what you do when you are in debt. Cut spending to the bones, then look for ways to increase income.

    Answer by May-20 at 2:45 PM on Sep. 15, 2010

  • you cant cut taxes and cut spending at the same time
    There is a lot of waste we can cut, and a big one would be defense.
    We should also be taxing the crap out of corps for shipping their jobs overseas

    Yes you CAN cut taxes AND cut spending...problem is the government doesn't know what a budget is! If you started earning less income than you used to earn, would you continue to spend money like you had in the past, or figure out things you can live without and live within your means? Would you borrow money from friends and family, and expect to never have to pay it back? How long do you think that would last?

    Defense is NOT the area that is bleeding this country dry....ENTITLEMENT programs and government subsidies are!

    And what do you think drove businesses out of America....that's right TAXES! Do you really think taxing them more is going to bring them back?!

    Economics 101 *sigh*

    Answer by LoriKeet at 4:43 PM on Sep. 15, 2010

  • mommom,

    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

  • It's what helped create this large deficit you are so concerned about, yet most of you think it's OK to add to the deficit with these tax cuts..

    This is such a simple concept, I don't understand why it's so difficult for people to understand - if you raise taxes, CONGRESS WILL SPEND ALL THE NEW MONEY. They won't apply it to debt. They won't reduce the deficit. If you give them more money they will spend more money. Tax cuts are not costing you money. You are not paying anything out, the government is not paying anything out. We have the same amount of debt whether we have a 2% tax rate or a 20% tax rate. Your problem is you actually believe if you raise the tax rate they will not increase spending. If the tax rate goes up, our debt remains the same, more money comes in, and then they invent new entitlement programs, pork projects, and other ways to spend that money.

    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

  • That's the easy answer. I've been reading about all the waste in government and I'm sure we could dump hundreds of billions of dollars worth of wasteful crap and not even have to think about raising taxes. Typical government cop out.

    Answer by itsmesteph11 at 4:34 PM on Sep. 15, 2010

  • Personally I would cut gov't. spending to the bone. If it wasn't military, infrastructure, SS/SSI, or Medicare it would be cut. Give the schools back to local districts, tell the able bodied if they want to eat they have to work, tell the illegals 'sorry, but the free ride is over ~ go home', etc. Than Congress should be told that it no longer matters what sort of salaries and perks they voted in for themselves and that they need to go back to their day jobs ~ and they will get a stipend while in session and that's all. No salary or retirement/medical (that's what the day job is for). No travel vouchers or use of military planes. At that point it should become federal law that nothing will be added to the budget unless it is balanced and in the black.

    With all of the pork and social programs removed, and the illegals booted, at the current tax rate we might break even eventually.

    Answer by Farmlady09 at 4:51 PM on Sep. 15, 2010