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Originally Posted by dalakhani
Why is there always an excuse to why the economy did well under clinton? Greenspan gives him a tremendous amount of credit.
Do you think Clinton was fiscally conservative?
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speaking of greenspan:
Former Federal Reserve Chairman Alan Greenspan, speaking at a Treasury Department event on business taxes,
said the problems of higher U.S. tax rates in a global economy are being masked by the low global cost of capital and declining exchange rates.
This will be temporary, however. “The cost of capital is not going to stay down at this level,” Greenspan said.
As the cost of capital rises, the problems of higher U.S. tax rates relative to other countries will become more apparent, he said
Treasury Secretary Henry Paulson earlier opened the event, saying, “Our current business tax system is clearly not optimal.” Paulson called for a comprehensive review of the way U.S. business is taxed, arguing the current system distorts the economy and harms business growth. “It is time for a comprehensive look at our system for taxing business,” he said. Paulson echoed comments he made in a recent Journal op-ed.
However, Paulson’s push for streamlining the corporate tax code is out of synch with Democrats in Congress. Democrats in the Senate and the House of Representatives, under new balanced budget rules, are pursuing a wide range of corporate tax hikes and revenue raising options, such as taxation of carried interest on hedge fund managers’ income. Tax reform isn’t on the tax committees’ agenda.
Greenspan stressed that lawmakers should act now to lower rates while the economy is good. “When all of a sudden the Baby Boomers retire … pressure is going to be for higher taxes, not lower taxes and to do anything that effects the corporate tax rate on the downside will run into political resistance.
that was from july '07.