JEANNE MESERVE, CNN ANCHOR: Federal Reserve Board Chairman Alan Greenspan is changing his tune on taxes. But is it the song the Bush administration wants to hear? In a departure from past statements, Greenspan today told a Senate committee that tax cuts, if phased in over time, could do the economy some good. The White House has been touting tax cuts as a way to spur the slowing economy. But Greenspan said such a move will not work as a quick economic fix.</s>ALAN GREENSPAN, CHAIRMAN, FEDERAL RESERVE BOARD: Lately, there's been much discussion of cutting taxes to confront the evident pronounced weakening in recent economic performance. Such tax initiatives, however, historically have proved difficult to implement in the time frame in which recessions have developed and ended.</s>MESERVE: Greenspan declined to comment on any specifics of the Bush tax cut plan, saying that was a political matter. For a broader perspective on the Greenspan testimony, we're joined now by Rich Miller. He's Washington editor of "Business Week." Thanks so much.</s>RICH MILLER, "BUSINESS WEEK": Thank you.</s>MESERVE: Now, the Fed chairman didn't want to specify -- talk about the political implications of what he said. But what are the political implications?</s>MILLER: This is a big victory for Bush. Greenspan has previously said we should use the surplus to pay down the debt. Here's a complete departure for him. He's saying, let's use it to cut taxes.</s>MESERVE: Why did he change his tune on this?</s>MILLER: Well, as always with Mr. Greenspan, it's a convoluted reason. He says we have so much surpluses piling up, that eventually we're going to completely pay down the debt.</s>MESERVE: Mr. Miller, I have to interrupt you.
Rich Miller of 'Business Week' Discusses Greenspan's Endorsement of Tax Cuts