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

[yogib37 3]

WASHINGTON - 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.

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"Unless we cut spending, no," the former Federal Reserve chairman said Friday when asked 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.

Democrats pounced on Greenspan's comments, in part because McCain professed last year that he was weaker on economics than foreign affairs and was reading Greenspan's memoir, "The Age of Turbulence," to educate himself.

"Obviously he needs to go back to that book and study it some more," Sen. Claire McCaskill, D-Mo., said during a conference call arranged by the campaign of Democratic nominee Barack Obama.

McCaskill said eliminating congressional earmark spending — estimated at $17 billion annually — cannot offset McCain's proposed tax cuts.

"That's a huge amount of money, but it's not even a drop in the bucket to pay for $3.5 trillion in tax cuts," she said. "So, every time he throws up earmarks and he's asked how he's going to pay for it, he knows he's being disingenuous, he knows he's not being forthcoming."

McCain campaign officials dispute the $3.3 billion 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. Sen. 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.

While McCain opposed the 2003 cuts and previous Bush administration tax cuts from 2001, he now says he would leave them intact. Obama has said he would repeal Bush tax cuts benefiting families making over $250,000 annually to pay for programs and provide middle-tax class relief.

Meanwhile, organizers of a conservative summit in Washington said McCain and his running mate, Alaska Gov. Sarah Palin, missed an opportunity by not addressing the gathering. Some 2,100 activists from 44 states, plus another 10,000 people who signed up to watch online, participated in the three-day Values Voter Summit.

On Saturday, McCain was less than 10 miles away, working in at his campaign headquarters in Arlington, Va. Palin was leaving Alaska and traveling to a rally in Reno, Nev. Last year, McCain and seven other GOP presidential candidates spoke at the summit.

"I think there is some disappointment that he's not here. I think there's greater disappointment that Palin is not here," said Tony Perkins, president of the Family Research Council, a key sponsor of the summit. "I think people would have liked to have heard from her."

Activists attending the summit were unanimous in their enthusiasm for Palin, including several who said their support for McCain was lukewarm before he selected her.

Gary Ward, pastor of the Rocky Point Church in Stephenville, Texas, said he supported former Arkansas Gov. Mike Huckabee for the GOP nomination but that his enthusiasm for McCain has been increased by his choice of Palin and his recent statement that he believes life begins at conception.

"That was absolutely the right answer," Ward said.

Elizabeth Kish, an administrative assistant from Gainsville, Fla., said she was put off by McCain's record on immigration and was considering voting for Libertarian Party candidate Bob Barr until Palin's selection.

"Once he chose Palin that was it for me," said Kish, who was wearing a "Pro-Life Pro-Palin" button and another button featuring pictures of Chief Justice John Roberts and Supreme Court Justice Samuel Alito under the slogan, "The Kind of Change I Believe In."

[IAMX 3,055]

The funny thing is Obama is cutting taxes too.

My heads spins along with the spin here.

[spookyturtle 9,465]

The funny thing is Obama is cutting taxes too.

My heads spins along with the spin here.

But you need to remember that eveything Obama says is ok, anything McCain and Palin say is a lie.

[Dan J 277]

The funny thing is Obama is cutting taxes too.

My heads spins along with the spin here.

Cutting taxes for lower and middle class tax payers and some small businesses, but raising taxes on the wealthy, investors, and large businesses.

McCain wants to cut everyone's taxes. Which will require more borrowing from China. Which will weaken the dollar and economy even more.

[IAMX 3,055]

The funny thing is Obama is cutting taxes too.

My heads spins along with the spin here.

Cutting taxes for lower and middle class tax payers and some small businesses, but raising taxes on the wealthy, investors, and large businesses.

McCain wants to cut everyone's taxes. Which will require more borrowing from China. Which will weaken the dollar and economy even more.

So I propose the question related to a post of mine in another topic.

If Democrats keep control of the Congress, and pass a bill to raise the taxes on everyone, do you really think Obama will veto it?

I doubt his sincerity in this, along with the fact that taxing people who primarily are good at tax evasion isn't much of a solution anyways.

If Obama wants to propose something rational that's also do-able, he should be touting cutting corporate taxes and enforcing them far more rigidly. However, that might mean upsetting some of the people he might find more worth his executive pen than the American voter.

[Dan J 277]

The funny thing is Obama is cutting taxes too.

My heads spins along with the spin here.

Cutting taxes for lower and middle class tax payers and some small businesses, but raising taxes on the wealthy, investors, and large businesses.

McCain wants to cut everyone's taxes. Which will require more borrowing from China. Which will weaken the dollar and economy even more.

So I propose the question related to a post of mine in another topic.

If Democrats keep control of the Congress, and pass a bill to raise the taxes on everyone, do you really think Obama will veto it?

I doubt his sincerity in this, along with the fact that taxing people who primarily are good at tax evasion isn't much of a solution anyways.

If Obama wants to propose something rational that's also do-able, he should be touting cutting corporate taxes and enforcing them far more rigidly. However, that might mean upsetting some of the people he might find more worth his executive pen than the American voter.

I think that depends on the current financial situation. If the government is running a deficit while the economy is strong, a tax increase might be prudent.

I agree, a lot of money is lost with companies and wealthy individuals evading taxes or under reporting income. Ironically, conservatives complain about illegal aliens not paying taxes, but the taxes they are not paying is only a drop in the bucket compared to what wealthy citizens and companies are not paying. The tax gap is at about $350 billion a year.

[Tsup2 0]

Alan Greenspan is an Obama supporter. We have him to thank for the current credit crisis.

[Hilarious Clinton 452]

we (US government) need to cut our spending

Edited September 13, 2008 by LuckyStrike

[dalegg 143]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

[kaydee457 13]

Greenspan is a closet democrat with chronic diarrhea of the mouth...Isn't he retired? Or dead? This dolt can't seem to keep his mouth shut and has probably single handedly cost innocent investors in the market billions with his doomesday predictions.

One needs to wonder, in retirement, how this man recieves his information to come to these conclusions.....

[Dan J 277]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

There is not a whole lot to cut that would get even close to what McCain wants to spend to finance his tax cuts. The largest single areas of government expenditure are DoD (20%, Iraq and Afghanistan are separate), Social Security (Funded with special tax outside of normal taxes), Medicare & Medicaid and 10% of our governments budget goes to pay interest from money borrowed in previous years.

Cutting DoD would make you very unpopular with conservatives, although it is arguably alot larger than it needs to be to accomplish providing defence. Alot of people will depend on social security, but you are not really saving any money as the social secruity tax would also go away. Cutting Medicare & Medicaid would make you very unpopular with older people. Though healthcare reform would help bring medicare and medicaid costs down. Funding tax cuts with more browwing would increase the amount of the budget going to pay interest. If you want to reduce spending, reducing our debt, not increasing it, would be a prudent way to do it.

[dalegg 143]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

There is not a whole lot to cut that would get even close to what McCain wants to spend to finance his tax cuts. The largest single areas of government expenditure are DoD (20%, Iraq and Afghanistan are separate), Social Security (Funded with special tax outside of normal taxes), Medicare & Medicaid and 10% of our governments budget goes to pay interest from money borrowed in previous years.

Cutting DoD would make you very unpopular with conservatives, although it is arguably alot larger than it needs to be to accomplish providing defence. Alot of people will depend on social security, but you are not really saving any money as the social secruity tax would also go away. Cutting Medicare & Medicaid would make you very unpopular with older people. Though healthcare reform would help bring medicare and medicaid costs down. Funding tax cuts with more browwing would increase the amount of the budget going to pay interest. If you want to reduce spending, reducing our debt, not increasing it, would be a prudent way to do it.

I'd like to have a look at the budget.

[Dan J 277]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

There is not a whole lot to cut that would get even close to what McCain wants to spend to finance his tax cuts. The largest single areas of government expenditure are DoD (20%, Iraq and Afghanistan are separate), Social Security (Funded with special tax outside of normal taxes), Medicare & Medicaid and 10% of our governments budget goes to pay interest from money borrowed in previous years.

Cutting DoD would make you very unpopular with conservatives, although it is arguably alot larger than it needs to be to accomplish providing defence. Alot of people will depend on social security, but you are not really saving any money as the social secruity tax would also go away. Cutting Medicare & Medicaid would make you very unpopular with older people. Though healthcare reform would help bring medicare and medicaid costs down. Funding tax cuts with more browwing would increase the amount of the budget going to pay interest. If you want to reduce spending, reducing our debt, not increasing it, would be a prudent way to do it.

I'd like to have a look at the budget.

Here is a summary: http://en.wikipedia.org/wiki/United_States_federal_budget

Detail is here: http://www.gpoaccess.gov/usbudget/fy09/browse.html if you really want to go through everything.

[dalegg 143]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

There is not a whole lot to cut that would get even close to what McCain wants to spend to finance his tax cuts. The largest single areas of government expenditure are DoD (20%, Iraq and Afghanistan are separate), Social Security (Funded with special tax outside of normal taxes), Medicare & Medicaid and 10% of our governments budget goes to pay interest from money borrowed in previous years.

Cutting DoD would make you very unpopular with conservatives, although it is arguably alot larger than it needs to be to accomplish providing defence. Alot of people will depend on social security, but you are not really saving any money as the social secruity tax would also go away. Cutting Medicare & Medicaid would make you very unpopular with older people. Though healthcare reform would help bring medicare and medicaid costs down. Funding tax cuts with more browwing would increase the amount of the budget going to pay interest. If you want to reduce spending, reducing our debt, not increasing it, would be a prudent way to do it.

I'd like to have a look at the budget.

Here is a summary: http://en.wikipedia.org/wiki/United_States_federal_budget

Detail is here: http://www.gpoaccess.gov/usbudget/fy09/browse.html if you really want to go through everything.

18% Other discrecienary- GONE. That was easy.

Edited September 14, 2008 by dalegg

[Dan J 277]

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

yeah, right there is the key. Unless we cut spending. Where is this millineum's Ross Peroh?

There is not a whole lot to cut that would get even close to what McCain wants to spend to finance his tax cuts. The largest single areas of government expenditure are DoD (20%, Iraq and Afghanistan are separate), Social Security (Funded with special tax outside of normal taxes), Medicare & Medicaid and 10% of our governments budget goes to pay interest from money borrowed in previous years.

Cutting DoD would make you very unpopular with conservatives, although it is arguably alot larger than it needs to be to accomplish providing defence. Alot of people will depend on social security, but you are not really saving any money as the social secruity tax would also go away. Cutting Medicare & Medicaid would make you very unpopular with older people. Though healthcare reform would help bring medicare and medicaid costs down. Funding tax cuts with more browwing would increase the amount of the budget going to pay interest. If you want to reduce spending, reducing our debt, not increasing it, would be a prudent way to do it.

I'd like to have a look at the budget.

Here is a summary: http://en.wikipedia.org/wiki/United_States_federal_budget

Detail is here: http://www.gpoaccess.gov/usbudget/fy09/browse.html if you really want to go through everything.

18% Other discrecienary- GONE. That was easy.

$145 billion of that part of the budget, is dedicated to the war on terror.

Here is a more precise breakdown: http://en.wikipedia.org/wiki/2009_United_S..._federal_budget