Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Greenspan: Let Bush tax cuts expire

bush_greenspan.gi.top.jpgFormer Fed chairman Alan Greenspan, left, at President George W. Bush's announcement of his successor, Ben Bernanke, in October 2005. By CNNMoney.com staff

LONDON (CNNMoney.com) -- Former Federal Reserve chief Alan Greenspan believes Congress should let the tax cuts enacted by President George W. Bush expire for all Americans in order to address the widening deficit, according to a TV interview airing Friday.

"They should follow the law and let them lapse," Greenspan told Bloomberg TV's Judy Woodruff.

The 2001 and 2003 tax cuts are due to expire at the end of the year. President Obama had promised to make them permanent for families making less than $250,000. (Read 'Bush tax cuts up in the air')

But faced with growing fiscal challenges, there's debate in Washington about whether the country can afford to permanently extend the tax cuts.

Greenspan, who backed the tax cuts when they were enacted, told Woodruff that allowing the cuts to lapse "probably will" slow growth, but that the risk posed by doing nothing about the deficit is greater.

"I think we misunderstand the momentum of this deficit going forward," the former Fed chairman said in the interview. To top of page

Search for Jobs

Index Last Change % Change
Dow 18,169.68 -29.65 -0.16%
Nasdaq 5,215.97 -34.30 -0.65%
S&P 500 2,133.04 -6.39 -0.30%
Treasuries 1.84 0.05 2.96%
Data as of 6:49pm ET
Company Price Change % Change
Bank of America Corp... 16.91 0.04 0.24%
Ford Motor Co 11.74 -0.14 -1.18%
Chesapeake Energy Co... 6.08 0.08 1.33%
AT&T Inc 36.52 0.09 0.25%
CenturyLink Inc 31.00 2.75 9.73%
Data as of 4:15pm ET


UPS said it would buy 14 new 747-8 freighters from Boeing, a lifeline for the venerable airliner. More

Venezuela's President Nicolas Maduro announced a 40% wage hike Thursday one day after thousands of protesters called for him to step down. More