“Alan Greenspan, the chairman of the Federal Reserve Board, told Congress Wednesday that the economy was poised to grow without further large tax cuts, and that budget deficits resulting from lower taxes without offsetting reductions in spending could be damaging to the economy,” writes David Rosenbaum in today’s New York Times.

“Opponents of the large cut favored by President Bush took Mr. Greenspan’s testimony as support for their position.”

“Mr. Greenspan’s statements to the House Financial Services Committee were made as new Treasury data showed that tax revenues have arrived at a much slower pace than expected this spring. As a consequence of the revenue shortfall and increased spending enacted this month, government and private analysts said today, the budget deficit this fiscal year will be at least $80 billion higher than the Congressional Budget Office projected last month.”

“With a large deficit, Mr. Greenspan said, ‘you will be significantly undercutting the benefits that would be achieved from the tax cuts.’

“The combination of Mr. Greenspan’s testimony and the prospects of a higher deficit gave added ammunition to Mr. Bush’s political opponents, as the president continued today to press Congress to approve a $550 billion, 10-year tax cut.”

” ‘These deficit numbers are just the latest reminder that what many of us have expressed concern about is becoming even more of a problem,’ said Senator Tom Daschle of South Dakota, the Democratic leader.”

“The president met Wednesday on the tax issue with Republican Congressional leaders. Afterward, Senator Bill Frist of Tennessee, the majority leader, said that the president and all the leaders wanted as large a tax cut as possible and that Congress might consider more than one tax measure this year.”

“Ari Fleischer, the White House spokesman, played down any disagreement with Mr. Greenspan. Last week, the president announced that he would renominate Mr. Greenspan to his fifth term as Fed chairman, and Mr. Greenspan, 77, said he would accept.”