Sunday, September 14, 2008

Greenspan opposes McCain tax cut proposal as budget buster

Former Federal Reserve Chairman Alan Greenspan has questioned the affordability of Republican nominee John McCain's tax cut proposals which, like the Bush tax cuts, are based on cutting the taxes of the very wealthiest Americans. (see chart comparing Obama and McCain cuts)

Greenspan told Bloomberg News he was "not in favor of financing tax cuts with borrowed money" when asked if the United States could afford big tax cuts such as those proposed by John McCain. The non partisan Tax Policy Institute projects that McCains's tax cuts will add $5 trillion to the national debt or require major cuts in Social Security, Medicare and Medicaid.

Noting that McCain has in the past expressed strong admiration for Greenspan, a fellow Republican whose support helped convince Congress to pass the high income Bush tax cuts, the Obama campaign said the former Fed chief's comments were evidence that McCain's economic plan was fiscally reckless.

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