Former Federal Reserve Chairman Alan Greenspan doesn’t sound like a big fan of the Republicans’ proposed tax plan.
“What we ought to be concerned about is the fact that the federal debt is rising at a very rapid pace and there’s nothing in this bill to essentially stop that from happening,” Greenspan, 91, said in an interview Thursday on Fox Business Network. “Economically it’s a mistake to deal with sharp reductions in taxes now.”
Greenspan -- who was a Republican economic adviser before becoming Fed chairman in 1987 -- said he supports the idea of reducing the corporate tax rate to 20 percent, as the proposed House bill would do.
But “don’t look to that as a major factor in expanding the economy,” said Greenspan, a sought-after expert on tax and economic policy for more than four decades. “It just brings us back to neutral as far as our relative competitiveness around the world is concerned.”
This article was provided by Bloomberg News.