McConnell Slams Greenspan Plan
U.S. Senate Republican Leader Mitch McConnell spoke out against former Federal Reserve Chairman Alan Greenspan’s call to let tax cuts that were passed during the administration of President George W. Bush expire.Greenspan likes tax cuts and we're pretty sure he isn't due to die this year and take advantage of this excellent Estate Tax condition.
Congress should cut spending instead of allowing the tax cuts to die out later this year, McConnell said today on CNN’s “State of the Union” program. Greenspan said July 16 in an interview on Bloomberg Television’s “Conversations with Judy Woodruff” that the tax revenue is needed to reduce the federal- budget deficit.
The backing of Greenspan, who led the U.S. central bank from 1987 to 2006, helped persuade Congress to pass the tax cuts during the Bush administration. Lawmakers are seeking ways to spur the economic recovery, which has shown signs of slowing.
“We believe that the problem is not that we tax too little but that we spend too much,” said McConnell, who said allowing the cuts to expire would equate to a tax increase. “Raising taxes in the middle of a recession is not a good idea,” said the Kentucky Republican.
And as always, the Maestro is horribly confused and thinks we "misunderstand" the momentum once again.
“The problem is, unless we start to come to grips with this long-term [budget] outlook, we are going to have major problems. I think we misunderstand the momentum of this deficit going forward.”