User Clip: Greenspan on Tax Changes

Alan Greenspan, Former Federal Reserve Chairman, on the need for Tax Solvency - This was said during the budget surplus, at a time when the country feared having too much money in Federal hands. Still, he makes the argument that taxes should be set appropriately to cover the government's commitments. This speech led to the reduction in tax rates (the Bush tax cuts) that are set to expire. As you know, 9/11 affected our national economy and should have reshaped the tax changes to accomodate wars and other sharp expenditure increases. Changes in taxes did not account for the increased commitments of the government, however noble the cause, and the surplus that Mr. Greenspan talked about never materialized. Still, Republicans cling to this policy, as if the world never changed. close