Geithner Dismisses Concerns on Letting Tax Cuts Expire

(From the nytimes.com) Treasury Secretary Timothy F. Geithner pressed the case on Sunday for letting Bush-era tax cuts for the wealthiest Americans expire later this year. In appearances on two television programs, Mr. Geithner said that letting tax cuts expire for those who make $250,000 a year or more would affect 2 percent to 3 percent of all Americans. He dismissed concerns that the move could push a teetering economy back into recession and argued that it would demonstrate America’s commitment to addressing its trillion-dollar budget deficit.

On “This Week” on ABC, he said, “We think that’s the responsible thing to do because we need to make sure we can show the world” that America is “willing as a country now to start to make some progress bringing down our long-term deficits.”

Mr. Geithner added, “I do not believe it will affect growth.”

Most Republicans and some Democrats in Congress strongly disagree and have pledged to launch an all-out effort to extend the tax cuts for people of all incomes. The cuts were passed under President George W. Bush in 2001 and 2003. Supporters of extending the cuts for everyone argue that raising taxes on any group, particularly one considered crucial for creating jobs, could endanger a precarious economic recovery.

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