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View Full Version : Alan Greenspan: Country Can’t Afford John McCain’s Massive Tax Cuts For The Rich


Richard Tafoya
Sep 14th, 2008, 04:06 PM
Think Progress:
http://thinkprogress.org/2008/09/13/greenspan-mccain-taxcuts/

On Bloomberg Television this weekend, former Federal Reserve Chairman Alan Greenspan told host Al Hunt that the country can’t afford (http://www.bloomberg.com/apps/news?pid=20601070&sid=aKZG._gG2NVI&refer=politics) John McCain’s massive $3.3 trillion tax cuts (http://www.talkleft.com/story/2008/9/13/171428/718) without corresponding spending reductions (http://www.swamppolitics.com/news/politics/blog/2008/09/greenspan_mccain_tax_cuts_illp_2.html):
HUNT: John McCain’s proposed $3.3 trillion of tax cuts in two terms. Can the nation afford tax cuts of that magnitude?
GREENSPAN: Unless we cut spending, no. … I’m not in favor of financing tax cuts with borrowed money.
After endorsing (http://money.cnn.com/2001/01/25/economy/greenspan/) Bush’s massive tax cuts for the wealthy which turned Clinton-era record surpluses (http://archives.cnn.com/2000/ALLPOLITICS/stories/09/27/clinton.surplus/) into record deficits (http://thinkprogress.org/wonkroom/2008/09/09/bush-mccain-deficit/), Greenspan has much to atone for (http://select.nytimes.com/2007/09/17/opinion/17krugman.html?_r=1&oref=slogin). Telling the truth about McCain’s agenda is a good start.

As the Wonk Room has noted, McCain’s tax cuts would produce the highest federal deficit (http://thinkprogress.org/wonkroom/2008/05/15/mccain-deficit/) in 25 years. After inheriting Bush’s $407 billion deficit, yearly deficits under McCain would increase sharply, beginning with at least $505 billion in FY2009.

McCain has not specified (http://thinkprogress.org/wonkroom/2008/04/23/mccain-deficit-dhe/) how he would pay for his tax cuts, though he claims he will balance the budget in his first term (http://thinkprogress.org/2008/07/08/mccain-deficit/). Recognizing that McCain’s math doesn’t add up, McCain’s top economic adviser Douglas Holtz-Eakin has said, “I would like the next president not to talk about deficit reduction (http://thinkprogress.org/2008/04/14/mccain-deficits/).”

McCain has acknowledged the economy is not something he understands (http://thinkprogress.org/2008/01/18/mccain-economy/), but he has reassured the public, “I’ve got Greenspan’s book (http://www.boston.com/news/politics/politicalintelligence/2007/12/mccain_its_abou.html).” He should start listening to him too.

DoubleEdgeSword
Sep 15th, 2008, 07:48 AM
In related economic news, the Dow is down nearly 300 points minutes after the opening bell. Whoa.

DoubleEdgeSword
Sep 15th, 2008, 02:34 PM
And closed down 504 points, off 4.4% Wow! And McCain still thinks out economy is good? Huh?

db44
Sep 15th, 2008, 02:43 PM
And closed down 504 points, off 4.4% Wow! And McCain still thinks out economy is good? Huh?

You beat me to that. Even Bush today was supposed to address the situation.

So now McCain has scoffed at Obama on his plans for Iraq and his view on the economy, and both times, indicators have pointed to the Obama way of thinking. In both cases, even the Bush camp has agreed with Obama now.

pinky
Sep 15th, 2008, 02:57 PM
In both cases, even the Bush camp has agreed with Obama now.
Are we sure that's a positive thing?

db44
Sep 15th, 2008, 03:19 PM
It is I think when it's Bush essential conceding to points he wouldn't admit to before. And when it's them coming to the opposition's side, not vice versa.

pinky
Sep 15th, 2008, 03:26 PM
Yes, but if Bush thinks it's right, you do have to consider all sides of the issue. ;)