July 26th, 2010
07:42 AM ET
4 years ago

Tax hikes for the rich: Can the economy afford them?

Treasury Secretary Tim Geithner said Sunday he wants to let the Bush tax cuts expire for the wealthiest Americans.
Treasury Secretary Tim Geithner said Sunday he wants to let the Bush tax cuts expire for the wealthiest Americans.

New York (CNNMoney.com) – Would making the rich pay higher taxes next year hurt the economy?

That question underlines one of the trickiest fiscal questions facing Washington policymakers: What to do about the 2001 and 2003 Bush tax cuts, which are set to expire at the end of the year.

President Obama wants to let the cuts lapse for joint tax filers who make at least $250,000 ($200,000 for individuals) but extend them for everyone else. That means the top two tax rates would revert to where they were in the late 1990s: The 35% rate would go to 39.6% and the 33% rate would go to 36%.

Earlier: Geithner pushes plan to let tax cuts for wealthy expire

Full story


Filed under: CNNMoney.com • Economy • issues • Taxes • Tim Geithner
soundoff (24 Responses)
  1. Gil

    They wouldn't pay higher taxes, but they would keep the tax hikes that were put into place by the bush administration while the taxes for the middle and lower class would expire. Yes, they could afford to keep paying the taxes the repuglicans put in place! Get it straight! It was the Bush tax plan and the republicans!

    July 26, 2010 08:09 am at 8:09 am |
  2. We are NUTS to listen to Geitner

    Who is their right mind would listen to Tim Geitner about tax policy and the economy? This is the same Tim Geitner that swore UNDER OATH at his confirmation hearings that he did not know how to do self employment taxes using Turbo Tax even after he was given the money for the taxes by his employer firm when he was consulting. Now I "know" Secretary Geitner would never commit perjury which under oath, so Americase must concluded that he is just STUPID when it comes to taxes.

    CHange you can believe in ....... NOT

    July 26, 2010 08:11 am at 8:11 am |
  3. If you do not pay taxes, it wont matter

    If you are like Tim Geithner and you cheat on your taxes, a tax will not matter much to you or the economy because4 guys like Geithner do not pay their taxes...... and this is the tax cheat Obama chose to run the Treasury and the IRS?

    Change you can believe in? Not so much

    July 26, 2010 08:14 am at 8:14 am |
  4. Hendrik

    Of course we can afford them. This nonsene about the trickle down effects drying up is tiring. Push this through. Get it done while you can still get it done. Businesses will still want to earn money so they will adapt. The rich will be fine too. They can grumble all they want; they will survive nicely and THEY WILL HIRE. Let's not be afraid to take on these people and the Repukelican party.

    July 26, 2010 08:14 am at 8:14 am |
  5. bill

    i rember late ninetys.we actually had a surplus.BUT BUSH TOOK CARE OF THAT.WITH HIS TWO WARS.TAX CUTSFOR RICH.LET THEM EXPIRE GO BACK TO THE NINETYS.IF THAT IS WHAT IT TAKES.

    July 26, 2010 08:15 am at 8:15 am |
  6. g

    these ppeople do not invest in the united states of america, they invest in offshore countriescheap labour and bank of shore and would like to take away middle-class voting rites, reagons dream of a mexican style goverment where only the rich elect goverments, is in the future the phasants don,t have a chance 1970 wages- 2010 profits

    July 26, 2010 08:18 am at 8:18 am |
  7. JonDie

    Repealing a HUGE TAX CUTS is not a tax hike. And yes, the super-rich should pay SOME taxes for the privilege of living in the U.S.

    July 26, 2010 08:24 am at 8:24 am |
  8. Don Beal

    I'm sure this article will receive outcries against "redistribution of wealth", but do a little math. The $250,000 earner will see no change in the tax rate. The $300,000 will see the marginal tax rate go to 36% as opposed to the present 33%. If that marginal rate applies to the $50,000 above the $250,000 mark, the additional tax is 3% of $50,000 which is $1500. $1500 is one half of 1 percent of $300,000, a drop in the bucket. For the $400,000 earner (the President's salary), the increase is $4916 which is 1.2% of $400,000, a slightly bigger drop, still hardly confiscatory.

    July 26, 2010 08:24 am at 8:24 am |
  9. Keith in Austin

    One way or another, Obama and his band of Liberal cronies will raise taxes on EVERYBODY! Not just the Rich.

    BIG Government will raise fees on heating your home this winter, gas for your car, manufacturing, imports etc. etc. No matter how you shake it, the Middle Class will catch the brunt of the sorry effects of Democrat out-of-control spending via higher unemployment, increases in the cost of goods, higher taxes and shrinking disposable income. Just wait and see Folks!

    July 26, 2010 08:29 am at 8:29 am |
  10. Angus McDugan

    None of us know. Unfortunately, the odds are on Obama making the wrong decision when it comes to the economy and the benefit of those who are unemployed and which to work hard for a living. On the other hand, if you like laying around and letting the government pay for your existence then Obama is the MAN!

    July 26, 2010 08:31 am at 8:31 am |
  11. John

    It about time rich get taxes instead of the poor.

    July 26, 2010 08:33 am at 8:33 am |
  12. tpbco

    Sure, doesn't matter to this administration....they don't pay their taxes anyway.

    Liberal elitiism at its finest.

    July 26, 2010 08:36 am at 8:36 am |
  13. diridi

    Tax CEOs so hard...they remember...and all who make more than 250k....nation needs this....imprison who hire illegals and non-citizens....

    July 26, 2010 08:41 am at 8:41 am |
  14. gary

    How can the country afford to not tax the very rich while maintaining tax cuts for the poor and middle class? The poor and middle class will likely spend the money and, in turn, stimulate the economy while producing more jobs. At the same time, consider cutting everything including the intelligence community and military where there is overspending, gross redundancies, and too many contractors that are overcharging the government.

    July 26, 2010 08:42 am at 8:42 am |
  15. andreas

    What a 'dumb' headline...."Tax hikes for the rich: Can the economy afford them?" Who else can afford them?! The poor, or maybe the unemployed...
    Your endless intellectualization of greed is sickening!

    July 26, 2010 08:44 am at 8:44 am |
  16. rightsaid

    One step toward cutting deficits. Please, let's do it.

    July 26, 2010 08:51 am at 8:51 am |
  17. Ed FL

    Let them expire the only ones complaining are soewhat short of that category. Everyone forgets about all the money they spend for entertainment ant travel become tax write offs as buisness expenses the crybabies who complain are mostly news media whose expenses are write offs for their bosses that own the corporations and not the individuals tax benefit.

    July 26, 2010 08:55 am at 8:55 am |
  18. S.B. Stein E.B. NJ

    Given that many of the wealthy aren't supporting social welfare charities like food banks and shelters, I don't see why they should be getting any breaks. How much of their income actually comes from wages? I think that we would be better served if the wealthy would listen to BIll Gates and Warren Buffet when they say that they need to give more. If these wealthy could be supporting grants and free loan societies, that would be a great area to work in for them.

    July 26, 2010 08:58 am at 8:58 am |
  19. Wayne

    I'm sure that all of the reporters in America who make six figure incomes and are included in the bracket of increased taxes will bend the news making it look like the tax hike will hurt America.

    As for me, and MOST of America, BRING IT ON!!!

    July 26, 2010 09:00 am at 9:00 am |
  20. my $.02

    We can't afford to NOT let them expire.

    July 26, 2010 09:01 am at 9:01 am |
  21. annie s

    Let the tax cuts for the wealthiest Americans expire. The idea that those cuts helped to create any jobs at all is a myth – under Mr. Bush we had the most anemic job growth than at any other time in history. Trickle down is a myth. Use the higher taxes to pay down the deficit.

    July 26, 2010 09:05 am at 9:05 am |
  22. guy from NM

    Hurt the economy??? Since they already own most of this country, they should pay taxes

    July 26, 2010 09:07 am at 9:07 am |
  23. Seattle Sue

    Can't afford not to. When Mr. Bush passed these tax cuts, I said at that time I could do without the 3 or 4 hundred dollars it would save me if it would keep our government in the surplus.( but we have been in the red since) The wealthy has had it good for the last 10 years and they can afford to give a little more.

    July 26, 2010 09:09 am at 9:09 am |
  24. The Smart One

    I think the REAL question is can we afford to keep them? Who asks these dumb questions? Republicans? The top 2% do NOT need a tax cut. How long do we have to play this ridiculous game before someone says "Wow, maybe trickle-down economics DON'T work".

    July 26, 2010 09:16 am at 9:16 am |