Alan Greenspan: McCain tax policy unsupportable
Late last week, Alan Greenspan, retired Chairman of the Fed. Reserve, said he could not support McCain’s tax cuts unless there was an offsetting decrease in spending.
Greenspan told Bloomberg News he was “not in favor of financing tax cuts with borrowed money” when asked if the United States could afford big tax cuts such as those proposed by Republican John McCain.
McCain has focused on cutting out earmarks by using a non-existent line item veto and reorganizing departments. That may save a few million dollars, if he actually had the ability to do so. However, that will not offset the proposed $400 million McCain proposes to give to the wealthy. Nor will it reduce the half trillion dollar deficit racked up this year. The national debt has now reached $3 trillion…and could go much higher.
According to economic experts, the U.S. financial situation is at the tipping point…which is another reason why Secty. Paulson would not bail out Lehman Bros. as it did Bears Stearn. The U.S. Treasury simply cannot afford it.
Former Treasury Secretaries Robert Rubin and Larry Summers told Charlie Rose on the Charlie Rose Show (on PBS) last Wednesday that the next President and Congress must use fiscal restraint: everything must be paid for, especially for long term planning.
Echoing what came today, both agreed that this is the worst economic situation since the 1930s and if ignored or not aggressively attacked, could get much worse. Rubin said that the current fiscal problems are “a perfect storm.” He added that the next President “needs a seriousness of purpose and a deep sense of fiscal discipline” to handle the current financial problems facing both the government and the country.
Neither believed that McCain had the “seriousness of purpose and a deep sense of fiscal discipline” to get the country back on track. Both endorsed Obama’s economic plan.