There’s been considerable praise in the liberal blogosphere for Ben Bernanke, President Bush’s nominee to replace Alan Greenspan as chairman of the Federal Reserve. Is it warranted? This article from the 10/21 edition of Tax Notes isn’t encouraging:
Council of Economic Advisers Chair Ben Bernanke in October 20 remarks before the Joint Economic Committee said recently enacted pro-growth economic policies, including the 2001 and 2003 tax cuts, will help the nation withstand the effects of hurricanes Katrina and Rita.
“These recent events make it all the more important that we keep the fundamentals of the national economy strong and continue to promote economic policies that will encourage growth and job creation,” Bernanke said.
Bernanke cited extension of the 2001 and 2003 tax cuts as one of the most important economic policies for Congress to act on…
This year, “people making at least $1 million a year will enjoy an average $103,000 tax break this year from the 2001 and 2003 tax cut bills. That’s nearly 140 times as large as the $742 tax cut the average middle-income household will receive.”