Bernanke's Off The List

From Reuters -


Wed Apr 19, 3:48 PM ET WASHINGTON -

Federal Reserve Chairman Ben Bernanke said tax cuts can spur greater economic activity and boost economic efficiency, but generally do not wholly pay for themselves.

"Tax cuts that reduce marginal tax rates will likely improve the efficiency of the economy and boost overall economic activity," Bernanke said in an April 18 letter to Rep. Brad Sherman (news, bio, voting record).

"Because they increase economic activity, cuts in marginal tax rates typically lead to revenue losses that are smaller than implied by so-called static analyses, which hold economic activity constant," he said. "However, under normal conditions, tax cuts do not wholly pay for themselves."

The letter, released by Sherman's office on Wednesday, was in response to written questions the California Democrat submitted in connection with a February 15 hearing on monetary policy at which Bernanke testified.

So that's it. In addition to his cheesy watch, Chairman Bernanke's prounouncement that "tax cuts do not wholly pay for themselves" (who ever said they were supposed to be revenue neutral) precludes his inclusion in our Christmas list.