The nullification of tax cuts proposed by the Democrats has been provided support by former Federal Reserve Chairman and a Republican, Alan Greenspan. He also put forward recommendations to set regulations for big banks to make them conducive for the economy.

But, Greenspan is demanding the ban on 2001 and 2003 tax cuts comprising whole of the nation and not only the billionaires of America, with annual income more than $250,000.

On Friday, Greenspan stated that though he favors tax cuts, but he doesn’t support borrowing of money. He further added that in an era of financial crisis, it’s important to give a thought to what is good and what is bad.

Mr. Greenspan said, “My approach has been consistent: supporting tax cuts when surpluses loomed, and endorsing revenue increases now that deficits are the leading worry”.

The tax cuts were put forward by the Republican Presidential candidate Senator John McCain. According to him, the increase in tax burden during economic slowdown is not at all a good idea. He called the proposal of banning cuts a political agenda and also said that Greenspan is overlooking the state of the economy.

Tim Pawlenty, Minnesota Governor and a Republican also demands that the tax cuts should be continued.

Greenspan has been a very good economist and provided well-framed policies for the nation from time to time and during the Bush’s Administration too, when he supported the tax-reductions.