Don't Mess With Taxes

So what does the man who heads up the group that controls the United States' money think of our tax system?

During an interview with CBS' 60 Minutes correspondent (and Texas Tech alum) Scott Pelley that aired last night, Federal Reserve Board Chair Ben Bernanke focused on the economy and unemployment.

But he did offer a few thoughts on other fiscal and policy issues now being debated on Capitol Hill.

Bernanke said (around 8:50 of the 15 minute video segment) that the budget deficit must be cut, but not right now.

The Fed head offered some additional advice (10 minute mark of the video) to Congress on how to get the economy moving: clean up the tax code.

It's very inefficient, both for individuals and companies, said Bernanke. To improve things, he suggested closing loopholes and lowering tax rates, which would create more incentives for people to invest.

Of course, the number of potential investors is dwindling due to growing income disparity in the United States. "It's a very bad development," said Bernanke (13:30 into the interview), that's "creating two societies."

Bernanke was more optimistic about the longer-term outlook for the country.

"I have a lot of confidence in the United Sates," he said, citing the country's "excellent record of innovation" and our strong entrepreneurial culture.

The United States will retain its leading position in the world, predicted Bernanke, "but again, we gotta get there. And we have some very difficult challenges over the next few years."

Related posts:

• House approves extension of middle-class tax cuts in symbolic vote
• Tax cuts task force to hammer out deal
• IRS commissioner chides Congress for its delay
  in dealing with expired taxes
• The economic and political perils of Congressional gridlock

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