Alan Greenspan Agrees With Democrats: End Bush Tax Cuts!

by Ben Hoffman

Congress should let all of former president George W. Bush’s 2001 and 2003 tax cuts expire to cut the long-term budget deficit, former Federal Reserve chairman Alan Greenspan has said.

Mr Greenspan’s support helped persuade Congress to pass the tax cuts in 2001 and his comments thrust him into a heated political battle over whether to extend them beyond the end of 2010. “They should follow the law and let them lapse,” Mr Greenspan said in an interview.

“The problem is, unless we start to come to grips with this long-term [budget] outlook, we are going to have major problems. I think we misunderstand the momentum of this deficit going forward.”

The Bush cuts lowered income tax rates; created a new 10 per cent tax bracket; raised tax credits for children; and lowered taxes on dividends and capital gains. A “sunset” provision means that all the cuts will expire at the end of this year unless Congress extends them. Doing so would increase the federal budget deficit by cumulative $2,567bn between 2011 and 2020, according to the Joint Committee on Taxation.

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The tax cuts were irresponsible and resulted in the doubling of our national debt. They did little to stimulate our economy and extending them would cause irreparable damage to our country, if we’re not past that point already.

18 Comments to “Alan Greenspan Agrees With Democrats: End Bush Tax Cuts!”

  1. Mr. Hoffman,

    Why are deficits that accompany tax cuts horrible, even when they have coincided with economic growth ( Bush and Reagan tax cuts ) but, deficits that accompany slow growth and no jobs ( Obama Stimulus ), are acceptable. They are more than acceptable, they are so wonderful, you and your fearless Leader want more.

    Explain it.

    • [Explain it.]

      Dumb-f*cks around the nation blame the huge deficit on the stimulus, but in reality, the stimulus added only about $200 billion to it last year. With the jobs created and saved, some of that money was returned in the form of tax revenues.

      That said, the deficits are not acceptable, even during the recession. That’s why the Bush tax cuts need to be rescinded.

  2. First he admits 30 years of faulted economics – now he roots for higher taxes. Maybe his Ayn Rand didn’t work after all.

    • I concur. Greenspan outed his own bullshit three decades of making shit up when the crash happened. I wouldn’t let him watch the sun set, let alone the economy.

  3. Mr. Hoffman,

    ” With the jobs created and saved, some of that money was returned in the form of tax revenues. ”

    The only stat that means anything is the unemployment rate. Bush’s worst 2 months were Dec. 08 at 7.4 % and Jan. 09 at 7.7 % which he partially shared with Obama.

    Lets be clear, I mean “Clear” about our argument. Are deficits ” better ” caused by tax cuts or stimulus. That is what we are discussing, isn’t it ? Isn’t it ?

    Bush’s average unemployment rate for 8 years was 5.3%. A very strong figure when you throw in the catastrophes of 911 and Katrina.

    Now Obama’s average unemployment rate so far. About 9.4 %. Obama’s numbers are only for 1.5 years as opposed to 8 years. For your hero to catch Bush and prove your theory that deficits are better caused by Stimulus than tax cuts, he will have to average extremely low rates for the next 6 and a half years .

    I say he cannot do it. I say that if he gets unemployment under 8 % in a year he’ll be lucky. So far,,,as usual I am right and you are incredibly wrong.

    • [Are deficits ” better ” caused by tax cuts or stimulus. That is what we are discussing, isn’t it ? Isn’t it ?]

      One third of the stimulus was tax cuts.

      [I say he cannot do it. I say that if he gets unemployment under 8 % in a year he’ll be lucky. So far,,,as usual I am right and you are incredibly wrong.]

      I won’t be wrong because I haven’t made any predictions about unemployment. You’re delusional.

  4. Mr. Hoffman,

    ” One third of the stimulus was tax cuts. ”

    Then 2 thirds were spending, right ?

    I want to read a quote from a NY Times article about the stimulus vote in January of 2009. The article noted how 177 Republicans in the House voted against it and also 11 Democrats.

    Rahm Emanuel said ” The most important number here for this recovery plan is how many jobs it produces, not how many votes it gets, ”

    You still do not get it. Just like Obama does not get it . Those tax cuts in the porkulus are temporary . You have a crisis of confidence. Everyone is still thinking two things. Are things going to get worse again, and how is Obama going to screw us in the future?

    Everyone in business knows that Obamacare will cost them big bucks. Everyone with a good health care plan knows that Obamacare will screw with their health care costs and availability.

    Everyone knows that if the Democrats get cap and trade, taxes and costs will sky rocket. So everyone is hoarding cash. That is why nothing your freaking hero has done has worked. It really is that “simple” .

    Fixing the economy is simple. Stop scaring everyone. Make broad tax cuts permanent. Stop playing the race card. Stop playing the class envy card. Stop the Pelosi-Reid earmarks. Stop lying.

    Do those things and the economy will turnaround and Obama will get reelected.

    Since you and Obama never listen, I do not expect unemployment to get down to 7 % by the summer of 2012, which is what I believe Obama needs to be reelected.

    The only thing I do not know yet is who will succeed Obama. Will it be Palin, Jindall, Bachman, Romney, or Hillary. 🙂

  5. Yes, we all need to to pay more taxes!!!
    We all need to make even less money!
    No problem!

  6. So I’ve been rubbed out.

  7. Mr. Hoffman,

    ” If you ever choose to engage in honest debate, your posts will be welcome. “

    • Use all the measurements you want Alan, but the terrifying truth is the trend. We are moving to oligarchy in this country, may already be there, and we will stay there unless we wake up.

      While you get all worked up about this quarter’s minutia, we are being taken to the cleaners for good.

      Consider that effective tax rates for the 400 richest families in this country have been slashed almost in half in recent years. While the highest paid 400 Americans had an average income of $345 million in 2007, as a result of Bush tax policy they now pay an effective tax rate of 16.6 percent, the lowest on record. (Remember Warren Buffet pointing out that his secretary had a higher income tax rate than he did?)

      Those people are buying and selling congress and they want to be your overlords. Our overlords.

      And ever since Reagan, the Republicans are on their side.

  8. Federal Reserve Chairman Ben S. Bernanke said extending at least some of the tax cuts set to expire this year would help strengthen a U.S. economy still in need of stimulus and urged offsetting the move with increased revenue or lower spending.

    “In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said yesterday under questioning from the House Financial Services Committee’s senior Republican. “There are many ways to do that. This is one way.” (Washington Post)

  9. oops – been out of town and I am late jumping in here…..

    Back at the beginning of the meltdown, Greenspan said something interesting (paraphrasing from memory): I erred because I expected the banks to act in their own best interests.

    When a market purist says something like that – acknowledging that markets are in fact irrational – it means something. I suspect the guy has taken a late-life turn away from the Chicago school….

    • Greenspan was/is(?) a Randian. He became an acolyte of Ayn Rand as a collegian, became involved with her and the Brandon Institute during her life. He was a life long beleiver. Saying what he said must have ripped his reality in two.

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