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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