Federal Reserve Chairman Alan Greenspan says rising U.S.
deficits may have to be addressed with a move he hasn’t favored
in the past: tax increases, Bloomberg reports.
Greenspan, in testimony before the
House Financial Services Committee Thursday, said he didn’t
rule out raising taxes to rein in a deficit the Bush
administration says will reach $427 billion in the fiscal year
ending Sept. 30, topping a record $412 billion last year.
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“You’re going to have to increase taxes or reduce spending
somewhere if we’re going to keep the deficit under control,”
Greenspan reportedly said.
In past appearances before congressional
panels, Greenspan has expressed a preference for spending cuts
to balance the budget. His willingness to consider tax
increases indicates a growing uneasiness with President George
W. Bush’s fiscal policies, Barry Bosworth, senior fellow
at the Brookings Institution, a Washington-based policy
research group, told Bloomberg.
Bloomberg News
