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Friday, March 04, 2005
Greenspan's Testimony Garners Some Harsh Criticism
After testifying before the President's Panel on Tax Reform yesterday, Alan Greenspan received harsh crticism from one prominent Democratic Senator, Paul Krugman, and the New York Times editorial board.
First off, Senate Minority Leader Harry Reid (D-NV) said yesterday on CNN's "Inside Politics" that has never been a big fan of Greenspan and criticized his testimony for giving the current administration a pass on deficits while promoting Bush's Social Security Policies. In typical Harry Reid fashion, he flings a zinger at Greenspan, calling him, "one of the biggest political hacks in Washington"
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Then today, op-ed columnist Paul Krugman writes, "In 2001, President Bush and Mr. Greenspan justified tax cuts with sunny predictions that the budget would remain comfortably in surplus. But Mr. Bush's advisers knew that the tax cuts would probably cause budget problems, and welcomed the prospect."
Now that we are faced with budget problems, Krugman believes he sees Greenspan trying to provide cover. "And Mr. Greenspan has once again tried to come to the president's aid, insisting this week that we should deal with deficits 'primarily, if not wholly,' by slashing Social Security and Medicare because tax increases would 'pose significant risks to economic growth.'"
read the op-ed
And to make it three for three, the lead editorial in the New York Times suggests it is depressing it has taken Mr. Greenspan this long to suggest to Congress a tax increase to close the enormous budget deficit. They conclude "That should be a no-brainer, especially since the deficit - now at $412 billion - is largely due to tax cuts that President Bush and Congress have lavished on the most affluent over the past four years."
read the editorial
Posted by Adam Hughes
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