Republican economist and the former long-time Chairman of the Federal Reserve, Alan Greenspan, has come out for allowing the Bush tax cuts expire. Mr. Greenspan was a key supporter of the Bush cuts in 2001. Now, that he says, he sees the harm that these cuts did to the economy, he is for their demise.
Unfortunately, Mr. Greenspan wants the cuts to end across the board. That would mean the taxes of the middle class would rise. Allowing the lapse of the Bush tax cuts for the wealthy would help the economy by reducing the deficit. A tax rise for the middle class would hurt American families and slow the recovery.
In 2001, when Mr. Greenspan supported the Bush tax cuts, the country was enjoying a surplus, inherited from the Clinton years. Mr Greenspan faults both parties for the deficit.
Mr. Greenspan --"I must say that the Republicans, I think, have been cutting taxes with borrowed money, and the Democrats have been spending with borrowed money. They agree only on the borrowed money." See the video.