Politics

Geithner defends letting tax cuts for wealthy expire, cites deficit

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Treasury Secretary Timothy Geithner on Sunday disputed claims that allowing a portion of the Bush tax cuts to expire will choke economic growth, saying the government needs to do the “responsible” thing and show the world it is capable of tackling the deficit.

The treasury secretary argued that the economy, despite lackluster employment figures, is “starting to heal again.” Citing growth in manufacturing, he said there’s little chance of a so-called double-dip recession and dismissed lawmakers’ concerns that anything less than a complete extension of the Bush tax cuts could short-circuit an economic turnaround.

Geithner backed President Obama’s plan to extend income tax cuts for the middle class and let the tax breaks for the wealthiest Americans expire. He also said he will push to bring the capital gains tax back to 20 percent, from 15 percent.

Full Story: FOXNews.com – Geithner Defends Letting Tax Cuts for Wealthy Expire, Cites Deficit

WATCH: INTERVIEW WITH TIMOTHY GEITHNER