Tax cut for 95% of Americans?

by | Aug 5, 2009 | Obama, Politics, Taxes

Treasury Secretary Timothy Geithner hit the Sunday lecture circuit last weekend. Let’s take a look at the talking points in his interview with George Stephanopoulos on ABC News This Week.

Geithner starts by saying “there are signs the recession is easing.” Really?

Then he says they are going to make American’s more confident about their future … “by just making people understand we’re going to do what’s necessary to get growth back on track.”

Anytime a government official says they’re going to MAKE you do something, a red light should go off you in your head. Just how does the government define “What’s necessary?” Their answer to a recession was to add more to the debt than all previous presidents — from George Washington to George W. Bush — combined.

He throws in a few facts now and then when he says,

“We need recovery to be built on private demand, private spending. Businesses taking a chance again on the American economy. Putting investments to work. Starting to rebuild their employment base. That’s the ultimate test for recovery.”

Exactly what has the Obama administration done to help private demand, private spending? Look at how have they treated businesses and investors during these first six months! Businesses aren’t going to invest or rebuild their employment base when they can see what’s coming down the road. The stimulus bill didn’t stimulate private business. Cap and Trade? Taking over Healthcare? This doesn’t help private companies.

Geithner thinks that to build a more productive economy, the government needs to be…”making investments in health care reform, in education, in infrastructure, fixing our financial system.”

I think what he meant was radically re-engineer the market-based U.S. economy.

Stephanopoulos points out to Geithner that … “Congressional Budget Office estimates, that your budget will add 9 trillion dollars to the national debt over the next decade.”

And how does Geithner respond? Read this one carefully.

“George it is absolutely right and very important for everyone to understand we will not get this economy back on track, recovery will not be strong enough to sustain unless we can convince the American people that we’re going to have the will to bring these deficits down…”

Mr. Secretary, HOW do you bring down deficits? Well, first you blame the current situation on the previous administration, the one that’s been out of office now for over six months and then you hit the American people with this:

“…We’re going to a range of other things and that’s going to be a very difficult challenge for this country. We can do this, it just requires the will to act. … We’re going to have to do what’s necessary… We have to bring these deficits down very dramatically. … And that’s going to require some very hard choices.”

Hard choices for whom Mr. Secretary?

Stephanopoulos tries to lead Geithner to the answer “…To bring the deficits down,… That means more revenues. The President has said that taxes won’t go up for any Americans earning under $250,000, but it doesn’t appear that he’s going to be able to keep that promise if you’re going to bring the deficits down.”

Geithner deflects. He hems and haws. He says we don’t have a choice as a country and it’s going to be hard.

Surprised? You shouldn’t be.