Why Won’t Geithner Use the V-Word?
EmailI had a lively exchange with Treasury Secretary Tim Geithner on how hard President Obama would fight the GOP on extending tax cuts for wealthiest Americans. As expected, Geithner opposed the extension, calling it "deeply" irresponsible. But he didn't take the next step and promise a Presidential veto if Congress passed it. As you can see, I gave him more than one chance:
Stephanopoulos: How firm is the President's commitment to this proposal? If, for example, the Congress passes an extension of the tax cuts for the wealthy, will the President veto it?
Geithner: Again, what the President believes is the best strategy for the country is to extend the tax cuts that go to more than 95 percent of Americans, more than 95 percent of small business. Keep taxes on capital income low going to moderate. Give people the certainty that's going to be the world they're going to live in. But to do that responsibly, we let those tax cuts for the highest earning Americans expire as scheduled, as they were predicted to do. And I think that's the better strategy.
Stephanopoulos: I know that's what the President believes is a better strategy. What I'm asking is, is he going to veto– any bill that extends those tax cuts for the wealthiest—
Geithner: He believes this is what makes sense. It's what I believe. And we're going to make the case for that. I think it's– and I think it's the best strategy. And I think that we'll get support for this. Again, it's a sensible, practical–
Stephanopoulos: I know you think it's the best strategy. But I talked to some of the President's supporters who agree with him on Capitol Hill. And they say unless the President comes out firmly and strongly and makes that veto threat, we can't hold back—
Geithner: President's going to be firm and strong because he believes this is the best package. Now, of course, Congress—
Stephanopoulos: But no veto—
Geithner: No, I'm not saying that. 'm just saying that we're going to do everything we can to maximize the odds as the way we come out because we believe strongly it's the right thing for the country. Now, of course, Congress is Congress. They're going to have to legislate. And you're going to see– see people with lots of ideas. But you've seen Republicans now say the responsible thing for the country is to let those tax cuts expire. And I think that– that demonstrates the fact that if you look at the practical reality of what the country needs now, it's that balance of tax cuts for the middle class, tax cuts for businesses. That's the best strategy—
Stephanopoulos: I know you don't want to give a veto threat right now. That's pretty clear. But here's—
Geithner: I would be happy to give veto on so many things, George. You have no idea.
Stephanopoulos: But not this.
Geithner: No.
Why no veto threat? 3 possibilities:
1) Admin convinced it can't prevail, so won't declare a war it can't win.
2) Admin convinced it can't lose, so keeping powder dry.
3) They just don't know. Can't decide how hard to fight. Still debating how to handle.
Geithner's body language leaned into 2). My hunch is that 3) is closer to the truth.
Watch for yourself and tell me what you think…
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That’s all just so much BS, because the wealthiest people, are not sufficiently numerous (despite popular belief), to generate the monies needed to fund the greatly expanded government, and wars.
Everyone will have to pay more, and there is no way around that.
Worse, Obama continues to spend, on new programs, almost daily, continues to extend foreign aid almost daily, and seems to have zero concept, of the fact he has no money to pay for these things. Lastly he has committed us to programs that will continue to expand the debt, for years into the future.
No, he cannot avoid raising taxes. Of course taxes have already gone up, in spite of his claims……because of the elimination of tax deductions. For 2009, I paid the most taxes I have ever paid, on income that has been stagnant for years.
Posted by: Rick McDaniel | August 3, 2010, 10:21 am 10:21 am
This man no matter what he says or does is a lier,in fact the biggest one we ever had in his position.He does not know the time of day.
Posted by: Raymond | August 3, 2010, 1:44 pm 1:44 pm
what’s this tax cut for the wealthiest BS. Family of 5 making 212K living in high costs of living areas are not wealthy. They are middle class! Small businesses grossing 200+ is also not rich, on mainstreet, we call that a business that’s barely surviving. George and this administration needs to stop the spin and begin telling the people the truth. The gop and the people are not looking for a tax cut, we are looking to keep the tax rates the same.
Posted by: matt | August 3, 2010, 3:59 pm 3:59 pm
The so-called “rich” are already paying far more than their fare share.
If you funded the national budget by passing the collection plate (like in church), starting with the rich, the plate would be almost full before you were one-tenth finished. Half of the people would put in nothing.
Sorry, but it’s true: 50% of Americans pay no income tax. They ride in the wagon being pulled by the rest of us.
Posted by: JM in San Diego CA | August 3, 2010, 4:03 pm 4:03 pm
This taxing the “rich” is ludicrous. There are not that many rich to pay and take care of all the self described Victims. What Obama is doing is redistributing the wealth from the middle class who work and earn money to the middle class who do not. 50% of Americans do not pay taxes for one reason or another, which is unfair to those who play by the rules. This Administration hates “white America,” and will do anything to destroy America the way it now either through taxing people to death and giving benefits to woman, blacks, and hispanics. Doesn’t say much about the caucasions does it. Racist? This was the greatest country on earth but because of entitlements, laziness, and lawsuits, we are destroying the American work ethic and self-reliance, which those of us over 60 were taught a long time ago but unfortunately did not pass on to our heirs. As far as Åfrican Americans are concerned, I think most of the leaders are still in the 1960s and what they teach is antiquated. No one owes anyone anything that you did not work for.
Posted by: Gisela | August 3, 2010, 5:12 pm 5:12 pm
Sounds like George asked a question that Timmy Boy didn’t have a scripted response for. Danced all around it.
Posted by: LongT | August 3, 2010, 6:30 pm 6:30 pm
What impressed me about this interview is that George was asking tough questions, and not allowing Geithner off the hook. So many of the mainstream network “reporters” pitch the Obama administration softballs, and back off at the first sign of pushback.
Kudos to George for demonstrating some gumption in his interview of Geithner.
The only other question he might have asked Geithner is “What makes you think you’ll get any increased revenue by raising taxes on the top 5 percent of earners?” The Wall Street Journal has run several stories showing the history of how high wage earners will redeploy their investments if rates increase, and the tax collections will actually be lower.
Posted by: Terry | August 3, 2010, 8:07 pm 8:07 pm
It is really prety simple. Obama knows now that he is the worst President in history and he has failed at everything he has toutched so he continues to play games because of course that is what children do best. Obama has been a drunken teenager spending our money like it was an endless supply, has killed small business in America, and has angered the large corporations who are just sitting and waiting til he is thrown out of office. He needs to make it look like the Republicans support the rich instead of telling the truth that it is the rich that create jobs something he apparently is very opposed to. He knows he can not raise taxes in a recession or and he needs to paint the Republicans like the bad guys. Even though if you check out the truth you will see that it is the DEMOS who have controlled both houses since 2007. And before they arrived everything was pretty good.
Posted by: Wade Johnson | August 3, 2010, 8:59 pm 8:59 pm
Geithner and Obama are not known for their intestinal fortitude. Terry is right, if he vetos the continued tax cuts hes really done. Also, a half harted attempt to punish the rich for being hard working and smart is losing its glammer, people are becoming immune to “the Wealthy” being a problem, when everyone know they are the solution. And I’m not rich.
Posted by: George | August 3, 2010, 9:10 pm 9:10 pm
Christiane did a very good job her first time with This Week.
I enjoyed her questioning of guests on the show. But please ask her to stop moving around her glasses! It is quite distracting.
Posted by: Jean | August 3, 2010, 10:06 pm 10:06 pm
Let me understand. Bush cut taxes for some folks. Bush increased spending by trying to fight (2) multi-billion wars. That policy created enormous deficits.
Now the deficit is blame on who?
Posted by: Bob Jensen | August 3, 2010, 11:52 pm 11:52 pm
Has he paid his taxes????????
Posted by: Lizzie | August 4, 2010, 10:42 am 10:42 am