New York, NY -
Robert Hormatz, vice chairman of Goldman Sachs, today called upon incoming President George W. Bush for immediate reductions in withholding tax, retroactive to January 1, to help abort a looming recession.
In an interview taped this evening at the studios of Thirteen/WNET New York for That Money Show with host Betsy Karetnick, Hormatz called for tax relief across the board, but said the need is greatest for lower and middle income taxpayers.
"That's where it would produce the fastest effect to stimulate the economy," he explained. "It's not a cure all, but it will help."
The program airs Sunday night at 6 p.m. on PBS stations around the nation (check local listings).
Hormatz was interviewed along with Bruce Bartlett, senior fellow of the National Center for Policy Analysis in Washington. Bartlett agreed with the need for tax cuts and recommended lowering both the capital gains tax rate and alternative minimum tax as useful measures that also would make an impact on Wall Street.
But he added that monetary policy might prove more important in preventing a recession, and called on the Federal Reserve not to "dribble out interest rate cuts, as it has in the past."