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Taxes must rise to fight budget deficit: Greenspan

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Taxes must rise while fiscal stimulus needs to be wound down in order to reduce the U.S. budget deficit and allow private investment to expand, said former Chairman of the Federal Reserve Alan Greenspan on Wednesday.

“I am in favor for the first time in my memory of raising taxes,” Greenspan told an audience at the Council on Foreign Relations in New York

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He warned that the deficit, swollen by massive stimulus spending, was crowding out capital investment. We “must find a way to simmer down fiscal activism and allow the economy to heal,” he said, adding that that stimulus spending had been far less successful than anticipated.

Bush era tax cuts are set to expire at the end of this year. President Obama says he wants to cap taxes on middle and lower income households but allow taxes rates to revert to higher levels for the wealthy.

The issue is key in the forthcoming mid-term elections in November, with the Republicans pushing for tax cuts to remain in place across the board, claiming that higher rates on the wealthy would hamper the recovery.

Greenspan said that the chances the U.S. economy would slide back into recession were receding but warned that “all bets were off” is house prices started to fall further due to high levels of unsold inventory.

Greenspan, who was the head of the Federal Reserve for almost 19 years until he retired in 2006, said new rules to impose capital increases on banks were unlikely to cause a credit crunch as bank rushed to raise capital as some have suggested.

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(Reporting by Edward Krudy; Editing by Theodore d’Afflisio)

Source: Reuters US Online Report Top News

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MSNBC’s Maya Wiley reveals she is exploring a bid to run for mayor of New York City

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Civil rights activist and prominent MSNBC analyst Maya Wiley revealed on MSNBC on Thursday that she is considering a campaign for mayor of New York City.

Wiley also serves as the senior vice president for social justice at The New School and the Henry Cohen Professor of Urban Policy and Management at the Milano School of Policy, Management, and Environment.

"There have been reports in multiple outlets about some people discussing whether or not you might run for mayor of new york," MSNBC chief legal analyst Ari Melber noted. "Not as friend of Maya, but as a journalist, do you have any comment on that? Are you considering running for mayor?"

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GOP Senate candidate suspended football player for one game — for allegedly raping a 15-year-old girl: report

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On Thursday, in an op-ed, the conservative Washington Examiner reported on an incident from Alabama Republican Senate candidate Tommy Tuberville's career as a football coach for Auburn University in 1999.

"When Clifton Robinson, the short but quick receiver from Naples, Florida, returned to the Auburn University football team in August 1999 after pleading guilty to contributing to the delinquency of a minor to avoid going to trial after being charged with the second-degree rape of a 15-year-old girl, first-year head coach Tommy Tuberville pledged to figure out the right punishment for him," wrote Siraj Hashmi. "'Clifton is back on the team,' Tuberville said. 'He and I will sit down today, and I'll tell him that we do things right around here, so he can expect there will be some punishment. What it is, I don't know yet.' That punishment ended up being a mere one-game suspension from the team's Sept. 4 season opener against Appalachian State. Auburn won 22-15."

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Arizona Republican attacks Fauci and Birx for ‘undermining’ Trump with COVID-19 facts

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COVID-19 hospitalizations in Arizona set a record on Thursday, but one of the state's Republican representatives in Congress went to Fox News to urge the end of President Donald Trump's Coronavirus Task Force.

"I think that Birx and Fauci have gone well past their, their -- they've expired, their time of usefulness has expired," Rep. Andy Biggs (R-AZ) said.

"What they do, is when the president comes out and makes a policy -- because he is the president, he is the policymaker. When they come and make these statements that they make, they engender panic and hysteria and undermine what the president's doing. That's what I think's critical," they argued.

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