This from Bloomberg News Service, via Political Wire and my friend Kirk Rudy:
Sept. 12 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said the country can’t afford $3.3 trillion of tax cuts proposed by Republican presidential nominee John McCain without corresponding spending reductions.
Greenspan, a lifelong Republican and longtime friend of McCain, said today on Bloomberg Television’s “Political Capital With Al Hunt” that “I’m not in favor of financing tax cuts with borrowed money.”
Meanwhile, the Obama campaign released a memo on McCain’s tax plan. Excerpts:
When announcing his tax cuts in a speech on April 15, Senator McCain offered virtually no explanation of how he would pay for his new tax plan without increasing the deficit.5 While offering a number of vague commitments to slow spending growth and engage in bipartisan entitlement reform, the principal concrete proposal he unveiled would pay for only 5.8% of the cost of McCain’s tax planjust to cover the cost of his tax cuts in that year, Senator McCain would have to cut $312 billion in spending. To put that in perspective, that is the equivalent of cutting Medicare by 57%, or Social Security by 38%.