Treasury Secretary Says Letting Bush Tax Cuts for Rich Expire Will Not Slow Economic Growth

By Dschabner

Jul 24, 2010 6:00pm

In an interview on ABC News’ “This Week” to air Sunday, Secretary of the Treasury Timothy Geithner said the White House would push to let the Bush tax cuts expire for individuals making more than $200,000 a year and families making more than $250,000, but keep them for middle and lower income Americans.

“We think that’s the responsible thing to do,” Geithner said, “because we need to make sure we can show the world that they’re willing as a country now to start to make some progress bringing down our long-term deficits.” 

ABC News pointed out that Alan Greenspan, former chairman of the Federal Reserve, told Bloomberg News that letting the tax cuts expire — which the former Fed Chair supports — would “probably” slow growth, “but I think we have no choice in doing that, because we have to recognize there are no solutions which are optimum. These are choices between bad and worse.”

In his interview with “This Week,” Geithner disagreed.

“Just letting those tax cuts that only go to 2 percent to 3 percent of Americans, the highest earning Americans in the country, expire — I do not believe it will have a negative effect on growth,” Geithner said.

Tune in Sunday for more of our interview with Secretary Geithner.

– Jake Tapper

WATCH VIDEO HERE:

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