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FYI - Greenspan Rejects Estate Tax Repeal
On June 21, 2005, Federal Reserve Chairman Alan Greenspan testified before the Senate Banking, Housing and Urban Affairs Committee, during which time he reiterated his opposition to tax-cut proposals that increase the deficit and made clear that this opposition applies to proposals that repeal or drastically reduce the estate tax without fully offsetting the costs.
With the reappearance of the high federal deficits and the difficulty states are having funding federal mandates without assistance from the federal government, Greenspan has called for reinstating the "pay-as-you-go" rule (often-called PAYGO) that require the cost of all entitlement expansions and tax cuts to be offset, so that they do not increase the deficit.
Senator Charles Schumer (Dem. - N.Y.) asked Greenspan about the affordability of estate tax repeal if the cost were not offset. Greenspan stated that, despite favoring "reducing taxes on capital," he only supports such tax cuts "under PAYGO" and would advise Congress not to repeal the estate tax if the cost of repeal were not offset.
To view the full story click here... or cut and paste: http://www.cbpp.org/7-22-05tax.htm
Source: Center on Budget and Policy Priorities (July 22, 2005)
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