Former Federal Reserve Chairman Alan Greenspan believes that the US should "follow the law" and let the Bush tax cuts lapse. He disagreed Sunday with Republicans who say that tax cuts pay for themselves.

"I am very much in favor of tax cuts but not with borrowed money," Greenspan said during an appearance on NBC.

"The problem that we've gotten into in recent years is that spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous and my view is I don't think we can play subtle policy here," said Greenspan.

"You don't agree with Republican leaders who say tax cuts pay for themselves?" asked NBC's David Gregory.

"They do not," Greenspan replied firmly