Chairman Ben came out swinging tonight on 60 Minutes.First, as expected, he said he’s ready and willing to do more quantitative easing if he feels it will help.
Second, he said inequality is destroying America.
Third, he said we need to simplify the tax code, cutting rates and eliminating “loopholes.”
This, he says, will incent people to make more investments (we don’t see how that necessarily follows, but that’s what he said.):
“The tax code is very inefficient — both the personal tax code and the corporate tax code,” Mr. Bernanke said. “By closing loopholes and lowering rates, you could increase the efficiency of the tax code and create more incentives for people to invest.”
Bernanke didn’t specify whether eliminating “loopholes” includes eliminating the mortgage-interest tax deduction that everyone loves. Unless he’s looking to get sacked, we assume he doesn’t mean that. (But of course it should be eliminated, because it’s just another housing-market subsidy, one that punishes people who choose to rent instead of buy…)
Quote from Sewell Chan in the New York Times.
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