July 25th, 2010
09:21 AM ET
11 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. Go USA!

    10 years ago OMB told the Bush administration their tax cut plan would create record deficits within 10 years...here we are, ten years, two off the books wars, and a Wall Street bailout later & presto! Record deficits!

    The scary part is when we finally spent tax money on our OWN PEOPLE (stimulus) to save our economy from a depression, everyone finally gets mad! Sort of a** backwards if you ask me! Worse yet, the American people are on the verge of putting the same morons back into power that put us in this situation in the first place!! God help us, I hope they wake up before they make matters even worse! If we put the GOP back in power it will be the end of the middle class…

    July 25, 2010 11:01 am at 11:01 am |
  2. Proud member of "Global Zero"

    The tax cuts for people making over 250,000 a year should expire. Keep the rest in place. My family makes about 40,000 a year. We paid over 3,000 in taxes. When I filled out my income tax for this year, it was great to get those 2, 400.00 tax credits for working.

    I pay 8,000 a year to have health care cover my family. I pay 3,000 in taxes. I pay for car insurance, home insurance....what is left?

    Living a great life with President Obama. He is not going to raise your taxes, he is raising his.

    July 25, 2010 11:03 am at 11:03 am |
  3. Jess C

    Yes.... Finally a solution that has some teeth....push it through now! Although I'm sure the GOP will try to water this one down to an anemic solution as well as it truly cuts into their self-serving agenda. Pay your taxes like of us. Same for business sending our jobs overseas; hit 'em hard. Yes, we'll have to pay more for products; I'm willing.

    July 25, 2010 11:03 am at 11:03 am |
  4. The Big J

    Bassman, CNN isn't behind in the ratings because they are trying to ridicule the Palin hillbillies. It's because the Palins are such an BORING group of people!

    July 25, 2010 11:05 am at 11:05 am |
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