Tax Cuts Are Fine If You Also Cut...
Fed Chairman Alan Greenspan is optimistic on the economy and now supports the Bush tax cuts:
"The recently passed tax legislation will provide a considerable lift to disposable incomes of households in the second half of the year, even after accounting for some state and local offsets," he said.
"Most mainstream economic models predict that such tax-induced increases in disposable income should produce a prompt and appreciable pickup in consumer spending," Greenspan said.
And he isn't too concerned with the growing deficits with one caveat:
And the deficit is not necessarily a problem, he said, unless it persists for many years, which he said could be prevented by spending cuts that match the reductions in taxes.
"I have nothing against cutting taxes," Greenspan said. "I would just like to be sure that a constituency arises eventually for cutting spending as well, and that has not been the case."
We're out here Alan. Hoping for the same thing you are.
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