It’s more important for the U.S. to cut its budget deficit than to extend tax cuts currently set to expire at the end of this year, former Federal Reserve Governor Alan Greenspan said in an interview on PBS.
“The budget deficit problem, I believe, is far more dangerous than most of us contemplate on a day-to-day basis,” Greenspan said in an interview to air on PBS television’s “Newshour.” While low interest rates have made it easy for the government to sell bonds, “assuredly they’re not going to stay here.”
Like most that favor raising taxes on the wealthy to "cut the deficit", Greenspan fails to point out that keeping the middle class tax cut will cost an extra $4 trillion over the next ten years. Why then shouldn't we raise their taxes as well?
I also don't remember Greenspan vocally objecting to stimulus, TARP and Obamacare, all cost us much more than keeping tax rates on the wealthy the same.