Washington, D.C. – The Council for Citizens Against Government Waste (CCAGW) today applauded Federal Reserve Chairman Alan Greenspan for supporting tax cuts before Congress this morning.

“Two years ago CCAGW forecasted that budget surpluses, if allowed to accrue in Washington, would be frittered away on pork and waste by both parties,” CCAGW President Tom Schatz said. “That prediction was correct, as Chairman Greenspan affirmed today.  We applaud him for recognizing that to stimulate the economy and stem government waste, tax cuts this year are absolutely imperative.”

“Since across-the-board rate reductions now appear certain, CCAGW also reminds Congress and President George W. Bush to eliminate the death tax, the marriage penalty, make permanent the research and development tax credit, and reduce the capital gains tax.  In addition, the Alternative  Minimum Tax should be scrapped and the entire IRS code simplified ” Schatz added.  “Combined with stable money from the Fed, a round of tax cuts and simplification is just what this sluggish economy needs.” 

Schatz also noted that tax reductions would put appropriate downward pressure on government spending.  “The federal government currently wastes hundreds of billions of dollars every year,” he said.  “These-ever increasing surpluses of recent years have opened the floodgates of spending at both ends of Pennsylvania Avenue.  Along with tax cuts, education, entitlement, and military reform, the Bush Administration should push for overhaul of the spending and budget processes.”

CCAGW is the lobbying arm of Citizens Against Government Waste, a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.