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Claiming it's "the responsible thing to do," Treasury Secretary Timothy Geithner said Bush-era tax cuts for the wealthiest Americans should be allowed to expire and that doing so would not slow economic growth.
Geithner told ABC News the White House would push to let tax cuts run out for individuals making more than $200,000 a year and families making more than $250,000, while leaving cuts in place for most Americans.
"What the president's proposing to do is to leave in place, to extend tax cuts that go to more than 95 percent of working Americans and to leave in place tax cuts that are very important to [incentivize] businesses to hire new employees and to invest in expanding output," Geithner told "This Week."
Geithner disagreed with Alan Greenspan, who said recently that letting the tax cuts expire could deter economic recovery.
Congress passed the Bush tax cuts with an expiration date to minimize their effect on projected federal deficits, The Los Angeles Times reported. They will expire this year if they are not continued. Most Republicans and a few Democrats want them extended to avoid adding a projected $2 trillion to the federal deficit during the next decade.
"We think that's the responsible thing to do," Geithner said. "We need to make sure we can show the world that we're willing as a country now to start to make some progress bringing down our long-term deficits."
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