Washington, D.C.-The Small Business Survival Committee (SBSC) today praised Federal Reserve Chairman Alan Greenspan for his support of tax relief. SBSC pointed out that Greenspan has not changed his position on debt reduction and tax cuts, but simply noted this morning that the U.S. federal government is quite able to partake in both debt reduction and substantial tax relief.
Karen Kerrigan, SBSC's chairman, noted: "Alan Greenspan never said he was against tax relief. In fact, he always has stated that tax cuts are preferable to keeping the budget surplus in Washington where it will be spent lavishly by politicians. Evidence of excessive spending by government last year only underscores why Greenspan has spoken favorably about tax relief before the U.S. Senate today. In fact, Greenspan specifically pointed out that recent spending increases by the federal government have been 'troubling.'"
SBSC chief economist Raymond J. Keating added: "Greenspan should be commended for pointing out that he has always been in favor of cutting marginal tax rates as a means for maximizing economic efficiency. Reducing marginal income tax rates, as Greenspan pointed out, 'enhances incentives for saving, investment, and work.'"
Keating concluded: "Clearly, the most productive tax cuts are those that most broadly boost incentives for working, investing and risk taking, and therefore are beneficial to the overall economy. That means reductions in income, capital gains and death taxes make the most economic sense."
SBSC is a nonpartisan, nonprofit small business advocacy group with more than 60,000 members across the nation. For more information, please call SBSC at 202-785-0238, or visit SBSC's website at
http://www.sbsc.org/.
