Alan Greenspan Slams Alexandra Ocasio-Cortez Tax Proposal

Raising the marginal tax rate on the richest Americans to 70 percent would put a major dent in the economy, former Federal Reserve Board Chairman Alan Greenspan said on CNBC this morning.

During an interview with the CBS program "60 Minutes" that aired Sunday, Rep. Alexandria Ocasio-Cortez proposed that such a levy be imposed to pay for what she calls a "Green New Deal."

"If you're willing to take a significant drop in economic activity, I would suggest that," Greenspan told CNBC's "Squawk on the Street."

"Maybe I better make myself clear," he then added. "I think it would be a terrible mistake."

As for the general economic outlook, Greenspan said "This is an economy which is reminiscent of the 1970s, which was a period of inflation and economic slowdown. That's the type of system we're dealing with unless we can confront the issue of entitlements."

-RW