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Archive for Sunday, September 14, 2008

Greenspan: Country can’t afford McCain’s tax cuts

September 14, 2008

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Election 2008

In-depth coverage of the candidates and the issues, all leading up to the Aug. 5 primary and the Nov. 4 general election.

— Alan Greenspan says the country can't afford tax cuts of the magnitude proposed by Republican presidential contender John McCain - at least not without a corresponding reduction in government spending.

"Unless we cut spending, no," the former Federal Reserve chairman said Friday when asked about McCain's proposed tax cuts, pegged in some estimates at $3.3 trillion.

"I'm not in favor of financing tax cuts with borrowed money," Greenspan said during an interview with Bloomberg Television. "I always have tied tax cuts to spending."

McCain has said that he would offset his proposed cuts - including reducing the corporate tax rate and eliminating the Alternative Minimum Tax that has plagued middle-class families - by ending congressional pork-barrel spending, unnecessary government programs and overhauling entitlement programs such as Medicare and Social Security.

McCain campaign officials dispute the $3.3 trillion figure, saying it assumes eliminating 2003 tax cuts made by the Bush administration and then cutting from that higher level. They say McCain is proposing tax cuts worth $600 billion from current levels.

"John McCain opposed President Bush's tax cuts in 2003, because they didn't include the necessary spending controls. Senator McCain's proposed job-growing tax cuts are modest in comparison to his plans to slow the exploding growth of federal expenditures - meaning that contrary to Chairman Greenspan's assertions, this relief isn't proposed on borrowed money," said McCain spokesman Tucker Bounds.

Comments

Daytrader23 6 years, 3 months ago

Quite simple. McCain will send the U.S into a depression.

Daytrader23 6 years, 3 months ago

Tom Shewmon (Tom Shewmon) says:Don't wish for too much gloom and doom in America, Day, it will ripple right across the big pond.-----------------------------------------I make more money in bear markets than I do in bull markets.So I could care less. This depression has been expected for sometime as America has a culture of debt.The banks are in debt, the government is in debt and the people are in debt, the bill collector has come and now there is no money, Bush squandered it all away. An no this is not a left or right wing statement, its a fact.America is broke. How many billions does America borrow from China on a daily basis?

Daytrader23 6 years, 3 months ago

Well it looks like we may head into the depression before the election. Greenspan has been all over the media this weekend. Last time he did this was right before the sub prime crisis hit. Now Lehman may file for bankruptcy. Big banks may be lining up to fall down. In the long term scope of things this is good as it weeds out the weak. In the short term we may see another great depression that may last for a few years. This will be interesting. Either way I'll make my money.

Daytrader23 6 years, 3 months ago

Wall st. goes to work on Sunday as Lehman prepares for bankruptcy. Black Monday anyone?http://www.cnbc.com/id/26704405

Daytrader23 6 years, 3 months ago

Here we are on the verge of a financial crisis not seen since the great depression and most of LJW readers are more concerned with lip stick politics. "real issues" you kansans crack me up.

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