• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

On Bush Tax Cuts, an Impending Battle Between Congress and Administration

Geithner.jpg
Geithner.jpg

Treasury Secretary Timothy Geithner (epa/ZUMApress.com)

This weekend, Treasury Secretary Timothy Geithner appeared on two Sunday news programs to make the case for the expiry of the Bush tax cuts on the wealthiest earners and to argue for a strong recovery. The backdrop for the appearances is the looming fight over how to extend the 2001 and 2003 tax cuts. If Congress takes no action, taxes will rise for all income brackets.

[Economy1] The Obama administration hopes to extend the tax cuts for everyone making less than $125,000 a year, or $250,000 a year for couples. Some congressional Democrats want to keep lower taxes for all Americans until the recovery takes better hold. Most Republicans want to make the tax cuts entirely permanent. That sets the stage for a serious fight, during the run-up to the midterms, between the two parties and possibly among Democrats as well.

On This Week, Geithner called the Obama plan the “responsible thing to do, because we need to make sure we can show the world that [we are] willing as a country now to start to make some progress bringing down our long-term deficits.” He also said that “letting those tax cuts that only go to 2 percent to 3 percent of Americans, the highest earning Americans in the country, expire” would not “have a negative effect on growth.”

That argument is designed to combat the Republican line that tax increases would cut GDP growth and jobs. In advance of November’s midterm elections, campaigning for which will begin in earnest after the August congressional recess, Republicans have prepared a talking-points campaign focusing on the “Democrat tax hike.”

Delivering the Republicans’ weekly radio address this weekend, Rep. Mike Pence (Ind.) argued, “

But Democrats are not embracing the tax increases wholesale, and several Democrats support extending them for at least another year or two. Kent Conrad (D-N.D.), a deficit hawk and the head of the Senate Budget Committee, is arguing for extending all cuts. “In a perfect world, I would not be cutting spending or raising taxes for the next 18 months to two years,” he told reporters. “This downturn is still very much with us unfortunately.”

But the Obama administration is also heralding the economic turnaround more loudly than congressional Democrats. In a separate appearance on Meet The Press this weekend, Geithner said that “the most likely thing is, you see an economy that gradually strengthens over the next year or two. You see job growth start to come back again.”

Other economic figures do not agree. Testifying before Congress last week, Ben Bernanke, chairman of the Federal Reserve, described a weaker economy and argued for retaining tax cuts as a form of stimulus. “In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” he said. “In the longer term, I think we need to be taking steps to reassure the American people and the markets that our fiscal situation is going to be well controlled.”

The Republican congressional leadership has argued that tax cuts do not need to be offset, because they are stimulative, a point contended by conservative and liberal economists.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.