July 25th, 2010
09:21 AM ET
8 years ago

Geithner pushes plan to let tax cuts for wealthy expire

Washington (CNN) - The Obama administration will push for letting tax cuts for wealthy Americans expire while extending them for the rest of the nation, Treasury Secretary Tim Geithner said.

In interviews broadcast Sunday on ABC and NBC, Geithner called for a balanced approach as the economy recovers from the recession that started in 2008 while facing mounting federal debt.

That means pushing for measures designed to raise revenue, such as letting tax breaks from the Bush administration expire for families earning more than $250,000 a year while holding down spending and taking steps to encourage private sector job creation, Geithner said.

"We're in a transition ... from the extraordinary actions the government had to take to break the back of this financial crisis to a recovery led by private demand," Geithner told the NBC program "Meet the Press". "That transition is well under way. It's going to continue and it's going to strengthen."

Along with letting the tax cuts for the wealthy expire, the administration also wants to "leave in place tax cuts that are very important to incent businesses to hire new employees and to invest and expand in output," Geithner said on the ABC program "This Week."

Republicans say letting tax cuts expire for wealther Americans will hurt economic growth as the nation recovers from the recession. In particular, GOP critics say the $250,000-a-year threshold means many small business owners would be included in the group seeing their tax burdens increase when the cuts expire at the end of 2010.

Full story

Updated: 2:24 p.m.

Filed under: issues • Obama administration • Taxes • Timothy Geithner
soundoff (29 Responses)
  1. Walter

    While the devil is always in the details, this is exactly the right approach. Extend the tax cut for folks who spend almost everything they make. But let them expire for the leisure class, thereby reducing the budget deficit. Start moving us back in the direction of Clintonomics.

    July 25, 2010 09:31 am at 9:31 am |
  2. Cavon

    The first 2 lines of this article said all I needed to hear (see). Push hard Mr. Geithner. What fool thought it made sense to give tax breaks to people who can WELL afford to have them and then tax to death the working class who can barely afford to live on what they have WITHOUT taxes anyway????? Oh, Bush and his cronies.

    July 25, 2010 09:33 am at 9:33 am |
  3. Bassman

    How corrupt is CNN? Even thought the Levi story was posted yesterday, CNN keeps it at the top of the Political Ticker. Why? Because it is all about ridiculing Gov. Palin.

    TRENDING: Levi Johnston to star in music video
    Posted: July 24th, 2010 01:21 PM ET

    Geithner pushes plan to let tax cuts for wealthy expire
    Posted: July 25th, 2010 09:21 AM ET

    And CNN wonders why their viewing audience is even behind MSNBC.

    July 25, 2010 09:37 am at 9:37 am |
  4. ran

    If trickle down economics is so good then how come we are in the mess we are in. Because it has never worked since Reagan introduced it. All it does is make the rich richer. How come I have to pay a higher % of my income in taxes then do the rich! Even Warren Buffet knows that is wrong when he stated his secretary pays more of her income in taxes then he does. Greed is the reason we have less jobs. The fear/hate/obstructionist/purity Republicans have nothing to offer but the same plan that gave us the financial melt down, BP oil mess,WV coal mine mess. Any one who would ever consider letting this group back in must be insane because a sign of insanity is doing the same thing over and over again expecting a different result. The major problem is: GREED.

    July 25, 2010 09:44 am at 9:44 am |
  5. Gov At Its Best

    Of course Geitner wants to allow the tax cuts to expire......this way HIS OWN tax bill can be paid down faster!!!!

    July 25, 2010 09:45 am at 9:45 am |
  6. Paul H

    I guess that means no raises in the near future for working class America. Let the trickle down begin.

    July 25, 2010 09:45 am at 9:45 am |
  7. USN

    I find it hard to believe you libs are this stupid . You seem to have a brain , ???

    July 25, 2010 09:51 am at 9:51 am |
  8. vic

    We get what republicans say if you raise the tax people won’t invest they try to save
    No more finical regulation people won’t invest they won’t hire

    From 2000 to 2006 we have same policy brought us to this mess.
    There wont be regulation if every one work responsibly we don’t care how much they make
    How we can reduce nearly 1.4 trillion deficit with out raising tax to wealthiest
    I will pay more tax to bring the deficit down and stable the Dollar

    July 25, 2010 09:53 am at 9:53 am |
  9. katiec

    Eliminating tax cuts, perks etc for the rich will eliminate an unfunded $3.5 Trillion dollars to our deficit.
    The republicans voted against the $34 billion that extended unemployment but yet push the continuation of the unfunded tax cut.
    Their undying love, support for Wall St, the rich over the welfare of us and our country, obstruction of anything and everything regardless of merits is putting them on the road to becoming our country's most dangerous domestic terrorists.

    July 25, 2010 10:01 am at 10:01 am |
  10. Steve- Illinois

    Cavon, you genius! Please explain to the rest of us how raising taxes has ever created jobs! Also, please research how many private sector employees it takes to pay for 1 government job! If this stimulus bill has proven anything, it proves, that after spending almost a trillion dollars, you cannot spend yourself out of bankruptcy! You spend yourself into bankruptcy!

    Common Sense!

    July 25, 2010 10:02 am at 10:02 am |
  11. Stan

    The tax cuts for the rich should be repealed.
    The Supply-Side Trickle down theory is a ponzi scam.
    The only people who benefit from the Republican tax-cuts and deregulation are the richest 1%.

    July 25, 2010 10:06 am at 10:06 am |
  12. Dan

    I love CNN's wording: "Allow Bush tax cuts to expire". When the tax rate goes up, it is called a "Tax Increase".

    CNN is Obama's official lap dog.

    July 25, 2010 10:08 am at 10:08 am |
  13. ib

    Steve-Illnois–well said.

    July 25, 2010 10:11 am at 10:11 am |
  14. GonzoinHouston

    The blatant giveaway to the richest few has gone far enough. It was wrong when W passed it, it has added greatly to the deficit, and we still wound up in the Great Recession.

    July 25, 2010 10:11 am at 10:11 am |
  15. Ruth

    My question is–why do only the rich get tax breaks? Oh, I forgot Bush and Cheney are rich-they made that law. Sorry I lost my head for a minute. I guess poor, middle class and the homeless don't count in this country. Let's send more money to Pakistan and all the other countries we pay to like us.

    July 25, 2010 10:17 am at 10:17 am |
  16. Mark

    Can we talk about what percentage of the population even pays taxes? Mr. Geithner, don't say that you are cutting taxes for 95% of the population. That is a blatant falsehood. Last time I saw the figure, somewhere around 48% of the working populations does not pay a dime in income tax.

    July 25, 2010 10:23 am at 10:23 am |
  17. Kevin Cantu

    Explain to me how is it we don't have money for extended unemployment benefits and a lot of people complain about that but at the same time these same people say allow the tax extensions to continue and don't complain about how we are going to pay for that??? I like the fact that we're broke in this country but we stll have money to fund two wars overseas at the same time??? Yeah we're not in debt at all I mean look at how we're spending money on BS that both liberals and conservatives support....Why don't this country use some common sense and quit listening to these morons on the left and the right......

    July 25, 2010 10:23 am at 10:23 am |
  18. chris

    Ah, I can already seeing the Right hating this idea. After all, their whole ideology is wrapped up in Trickle Down Economics – that by giving more and more to the rich, eventually it will benefit everyone.

    The theory of Trickle Down Economics didn't originate with Reagan. It actually dates back to the 1800's. Back then the country was mostly rural and farming was the norm. So it was explained this way to the masses: Instead of seperately feeding both your donkeys and your chickens, it was more efficient to simply overfeed the donkeys with grain. That way, the chicken could pick through the manure for their feed. (I know, I know – it's gross, but that's how people lived back then.)

    I particularly like this analogy for Trickle Down Economics – because it depicts the rich as fat, overfed donkeys and the middle class as scrawny birds pathetically picking through the droppings of the rich.

    July 25, 2010 10:24 am at 10:24 am |
  19. chrgyr

    The basic difference between the liberals and conservatives is that the liberals believe the money belongs to the government and the conservatives know that the money belongs to the taxpayer. It's not the government's money.

    July 25, 2010 10:38 am at 10:38 am |
  20. Hendrik

    If the Democrats are going to get blamed for everything anyway, I think they should do the right thing and let these tax cuts EXPIRE. We progressives need to stand up to these Republican clowns that have ruined our country.

    If we are going to pay the price for doing the right thing, let's go out with a bang. The right bang for the buck. To h*ll with the Repukes.

    July 25, 2010 10:40 am at 10:40 am |
  21. La Piovra

    I cannot remember who stated that behind every great fortune there is a great crime, but this century has proven it true. The undertaxed super-rich have indeed produced more jobs... under slave conditions in India and China, where the most favorable tax legislation their money could buy has encouraged them to ship their production. Where did they get the means to buy this legislation? From a society that gave them the highways, the railroads, the ports, the favored treatment to prosper. Their thanks have consisted of plutonomism: the doctrine that it is a positive good to impoverish middle and working America in order to enrich themselves(see the Ajay memo). I t's time for them to show gratitude and pay their freight.

    July 25, 2010 10:46 am at 10:46 am |
  22. Keith in Austin

    So many "have not" Liberals this morning
    crying foul against the people paying 98 per cent of the tax load already! I find it remarkable that no one seems to realize that the Bush tax cuts were designed to include Small Business Owners to stimulate job growth and economic expansion. If Bozo et al removes them, unemployment will increase and the economy will suffer.

    Obama' socialistic plan: shifting Wealth to add more entitlements to those unwilling to EARN on their own and ensure Democrat votes in the future!

    July 25, 2010 10:48 am at 10:48 am |
  23. WDRussell

    Who cares if the rich create jobs in China, or India, or some other country most people couldn't find on a globe, that does nothing to help America.
    Giving more to the rich is like shoveling money into a bottomless barrel.
    If the US re-wrote the tax code to drop all taxes from the richest 5%, they wouldn't be happy, they would want more.

    July 25, 2010 10:51 am at 10:51 am |
  24. jim

    All along I have heard that the Bush tax cuts were only for the rich. Here is a rather sobering comment:

    If Congress does nothing for the rest of this year, just about everyone who pays federal income taxes will owe more next year.

    Of course there is a large percentage of Americans that do not pay any tax.

    What many critics have ignored is the number of people who were removed from the tax rolls (in 2001 approximately 25% of Americans paid no taxes; this has grown to 43% in 2010) reasonably as a result of the expansion of the child tax credit, which was a key provision of the President Bushes tax cut.

    If you take a $1,000 tax credit for having one child in 2010, you’ll only be able to take $500 in 2011.

    That seems to me to be a tax increase for anyone, regardless of income, who takes advantage of the tax credit for children.

    Don't be fooled into thinking only the rich (whatever rich is) will pay more, we all will!!

    July 25, 2010 10:53 am at 10:53 am |
  25. Gary, Hunt Valley, Md.

    The richest 2 percent of our country must be saved from the calamity that awaits them. My God, what is our nation coming to when the richest 2 percent must give back some of their exceptional comfort to aid the common good? Someone please take back my country.

    July 25, 2010 10:59 am at 10:59 am |
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