Greenspan: Politically, Social Security can’t be cut

Federal Reserve Chairman Alan Greenspan told a conference on retirement Thursday that he could see no “viable political scenario” that would allow Congress to cut Social Security benefits if the trust accounts that fund the giant benefit program were depleted.

Greenspan, who headed a Social Security commission that was influential in reforming the program in the early 1980s, said current law calls for benefits to be reduced to a level that could be financed only out of the program’s current receipts if the Social Security trust fund were exhausted.

But he said, “I cannot imagine a viable political scenario in which full payment of benefits will not be forthcoming.”

Service: Gregg Tire expands into KCK

Gregg Tire Co. opens a new store today in Kansas City, Kan., the company’s first expansion outside of Lawrence and Topeka.

The new shop, at 7908 Stave Avenue, will operate as a Goodyear/Gemini Automotive Care Center, said Rob Gregg, the company’s vice president. It previously was operated as State Tire and Automotive Services.

Gregg Tire also has centers at 4661 W. Sixth St. and 1226 E. 23rd St. in Lawrence, plus two shops in Topeka.

Economy: Consumer spending boosts growth in fourth quarter

The U.S. economy grew in the fourth quarter at its fastest pace in a year, powered by the biggest jump in consumer spending on cars and other big-ticket goods since 1986, the government reported Thursday.

The latest snapshot of the economy’s health as measured by the gross domestic product suggests that the recession, which began in March, likely has ended and may turn out to be the country’s mildest downturn ever, analysts said.

GDP the total output of goods and services produced within the United States grew at an annual rate of 1.4 percent in the final quarter of 2001.

Enforcement: IRS audit rate increases

The Internal Revenue Service’s audit rate no longer is falling, but the average taxpayer still faces long odds in being audited.

Last year, about one in 173 returns was subject to an audit. More than half of the returns audited in 2001 involved lower-income people who claimed the earned income tax credit.

In a separate report Thursday, the IRS said that as much as $10 billion in claims for that credit should not have been paid in 1999.

The reports come as millions of Americans prepare for this year’s tax filing deadline, which is April 15. Through last Friday, about 38.9 million returns had reached the IRS.

The audit rate for the 127 million individual tax returns filed in 2001 was 0.58 percent, a slight increase from 2000. Most audits were done through the mail, with a little more than 202,500 of the returns requiring an IRS agent to meet with the taxpayer.