27 September 2001, 12:25  Greenspan Favors Investment Stimulus

In advising Congress on further additional fiscal stimulus to offset the economic damage of the recent terrorist attacks, Federal Reserve Chairman Alan Greenspan favored investment-encouraging corporate tax relief, according to sources familiar with Greenspan's closed-door recommendations Tuesday, Steve Beckner wrote Wednesday in an analysis. When Greenspan met privately with members of the Senate Finance Committee in company with former Treasury Secretary Robert Rubin, he reiterated his long-time support of capital gains tax reduction, but in the current situation he suggested that reducing corporate taxes would probably be more efficacious, knowledgeable sources say. However, Greenspan was not talking so much about reducing corporate income tax rates per se, according to the sources. Rather, they say he recommended consideration of such measures as accelerating depreciation schedules and allowing increased expensing (immediate write-offs) of certain business outlays.

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