Thursday, March 03, 2005

"Still as uninformed as ever"

Just now on Countdown with Keith Olbermann, we learned about "Jeff Gannon", not his real name, and his daily briefing question. On his Web site, Gannon/Guckert says he is "on hiatus" from the Press Briefing Room, but he still wants to ask questions. Sidestepping for a moment the fact that he probably isn't getting anywhere near the White House ever again and this is just one more lie, take a gander at his recent question:

March 3, 2005 Fed Chairman Alan Greenspan told members of Congress on Wednesday that the U.S. economy is growing at a "reasonably good pace" and recommended that budget deficits be fixed through spending cuts instead of tax increases. Does the White House consider this an endorsement of its fiscal policies as opposed to Democrats who still want to roll back the Bush tax cuts?
Now, what Greenspan actually said was
"Addressing the government's own imbalances will require scrutiny of both spending and taxes. However, tax increases of sufficient dimension to deal with our looming fiscal problems arguably pose significant risks to economic growth and the revenue base," he said.

While higher taxes boost government revenues, they also deplete consumer coffers, dampening economic growth and spending — strains the economy can ill afford as the baby boom generation retires and the proportion of workers shrinks, he said.

Greenspan has long favored spending cuts over tax hikes.

Greenspan requires a little decoding, so let's look at some numbers. The deep budget cuts that Bush proposes in his FY 2006 Budget equal about $20 billion dollars. The expected budget deficit for 2006 as projected by the CBO is $295 billion. And that only includes outlays for appropriations already enacted and continued spending at the current levels, not any new monies for Iraq and Afghanistan.

What this means is that Greenspan wants spending cuts, but tax increases are on the table. By mentioning a national consumer tax, he leaves more room for something as simple as rolling back part of the Bush tax cuts.

I think he also would like to see a new formula for defining the benefit under Social Security, something he might see a spending cut from the mandatory side of the budget. But he has laid out tax increases as being part of the solution possibly.

How we got from Guckert to Greenspan, I'll never totally understand, but there it is.

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