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I don't know if you listened to the question and answer portion of Chairman
Greenspan's testimony. He was asked by a Democrat member weather he would
prefer to pay down debt or cut taxes with the supposed surplus. His answer
was that his first choice would be to pay down debt IF congress did not
increase spending but implied that it was very unlikely that congress with a
Democrat in the White House could do that. He then went on to say that
since it is unlikely that congress would be able to cut spending, it would
be preferable to cut taxes since this would to some degree control spending
and growth of government, and put money back in to the hands of the
individual. He also said that once expensive government programs were
initiated it was impossible to cut them back and that they only contribute
to the deficit.
In another part of his testimony he stated that the capital gains tax should
be 0, that's right 0, zip, nada, nothing. His reasoning was it is not an
efficient way to raise revenues and a drag on the economy since it
discourages new investment. This from a man who is up for reappointment by
Clinton!
I agree with both you and Chairman Greenspan that in a perfect world we
could use any surplus to pay down the debt, but unfortunately we do not live
in a perfect world. Can you imagine Clinton (either one of them) or Al Gore
or Barney Frank or Ted Kennedy cutting spending? It would never happen.
The Republicans fully understand the arithmetic: Cut government spending
first to pay down the debt, lower taxes as a tool to control government and
keep the economy growing.
I'll enjoy that ride, not just take it.
Good luck and good trading,
Ray Raffurty
----- Original Message -----
From: Andrew <andrew@xxxxxxxxxxxxx>
To: Dick Webb <dickwebb711@xxxxxxxxx>; <realtraders@xxxxxxxxxxxx>
Sent: Thursday, July 22, 1999 8:26 PM
Subject: Re: GEN: Y2K EXTREMISM?
> You are right on about greenspan. What an amazing concept... paying down
> debt.
>
> We need to take the debt to zero and then cut taxes... And by then we
will
> be able to afford it. If we follow the
> republican plan and cut taxes know, we will have to raise them again in a
> few years.
>
> The country will be a lot stronger without the debt. And we will still
have
> funds for social services.
> I really don't understand the republicans. It is easy arithmetic. Less
> interest paid out means we can lower taxes permanently.
> Stocks up, bonds up, interest rates down, foreign currencies down. The
US.
> will dominate the
> world economy.
>
> I'll take that ride.
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