Geithner: Tax Cuts For Wealthy Will Expire

Well, whattaya know!

The Obama administration will allow tax cuts for the wealthiest Americans to expire on schedule, Treasury Secretary Timothy Geithner said Thursday, setting up a clash with Republicans and a small but vocal group of Democrats who want to delay the looming tax increases.

Mr. Geithner said the White House would allow taxes on top earners to increase in 2011 as part of an effort to bring down the U.S. budget deficit. He said the White House plans to extend expiring tax cuts for middle- and lower-income Americans, and expects to undertake a broader revision of the tax code next year.

“We believe it is appropriate to let those tax cuts that go to the most fortunate expire,” Mr. Geithner said at a breakfast with reporters.

Treasury Secretary Timothy Geithner said the Obama administration will allow tax cuts for the wealthiest Americans to expire despite calls from a small group of Democrats to delay tax increases. Kelly Evans talks to John McKinnon in Washington.

His comments came as a number of Democrats, among them North Dakota Sen. Kent Conrad, have begun agreeing with Republicans and some economists who want to extend the Bush-era tax cuts for all earners, including couples earning above $250,000 and individuals earning above $200,000. Sen. Joseph Lieberman, a Connecticut independent, added his voice on Thursday, saying through a spokesman that he was “concerned about the impact of allowing the tax cuts to expire during our fragile economic recovery.”