Money Matters - Simplified

Geithner assails extending Bush tax cuts

Washington -- U.S. Treasury Secretary Timothy Geithner lashed out Wednesday at extending President Bush's tax cuts for the wealthy, calling the concept "discredited."

"There are some politicians who argue that tax cuts pay for themselves. This is a long discredited idea. There is absolutely no evidence to support it," Geithner said in remarks prepared for a speech at the Center For American Progress in Washington.

Geithner said middle-class tax cuts, if not extended, would create "a sharp fall in disposable income."

"This would be irresponsible and it would be unfair," he said, adding, "That would only slow our recovery."

Extending tax cuts for the country's top 2 percent income earners that were passed during George W. Bush's administration "is about more than the impact on our future deficits and debt, although that is critically important," he said. "It's a decision that will impact economic growth and the faith of Americans in the fairness of our tax policies."

Copyright 2010 United Press International, Inc. (UPI).

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