A wave of tax increases and billions of dollars in automatic spending cuts
would cause "a lot of damage" to the fragile economy, Treasury Secretary
Timothy Geithner said on Monday.
Tax breaks for all Americans are set to expire at the end of the year, and $100
billion in cuts to domestic and military programs are set to take effect in
January if Congress does not agree on a new deficit-cutting deal.
"Many people who look at this say that, yes, you'd at least get a recession out
of this," Geithner said on PBS' Charlie Rose television show. "The cumulative
size of those cuts - tax increases and spending cuts - are very, very large
relative to the economy," he said.
The nonpartisan Congressional Budget Office forecasts that the mix of spending
cuts and tax hikes would cause the U.S. economy to contract at an annual rate
of 1.3 percent for the first half of 2013 if lawmakers do not act.
The White House is pushing Congress to extend for one year tax cuts for
families earning less than $250,000 a year. Taxes for those earning more than
that would increase in 2013 if Congress passes legislation the Obama
administration wants.
Republicans argue that all tax cuts should be extended to avoid hurting the
tepid economy.
Geithner warned lawmakers that investors could not stomach a repeat of last
year's debt ceiling battle that increased the U.S. Treasury's borrowing costs
and stripped the United States of its top credit rating.
"You saw huge damage to consumer confidence, to business confidence, and to
confidence around the world in the United States because you had people in
public office threatening to default on our nation's obligations," Geithner
said.
President Barack Obama said on Monday that Congress "ought to be able to come
together and agree on a plan, a balanced approach" to avoid the steep automatic
spending cuts.
EURO ZONE WILL STAY INTACT-GEITHNER
Geithner reiterated that the domestic fiscal problems and the European Union's
economic crisis were still the biggest threats to the U.S. economy.
But he said he thought the 17-nation common currency euro zone would stay
intact. "They've said, 'We will do everything it takes to hold the European
Union together.' And you could say that's what they're trying to do," Geithner
said.
His comments came as Moody's Investors Service cited an increased chance that
Greece could leave the euro zone, which would set off a chain of financial
sector shocks.
Although Geithner said European leaders had committed to do what it takes to
hold their financial system together, he added they had to make that commitment
credible to markets and investors.
"If you leave Europe on the edge of the abyss, if you leave it just teetering
on the edge of financial disaster, it'll be much harder for this strategy to
work," he said.
(Reporting By Rachelle Younglai; Editing by Peter Cooney)
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>________________________________
> From: "[email protected]"
> <[email protected]>
>To: [email protected]
>Sent: Tuesday, 24 July 2012, 15:00
>Subject: Wikimediauk-l Digest, Vol 84, Issue 35
>
>Send Wikimediauk-l mailing list submissions to
> [email protected]
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>To subscribe or unsubscribe via the World Wide Web, visit
> https://lists.wikimedia.org/mailman/listinfo/wikimediauk-l
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>When replying, please edit your Subject line so it is more specific
>than "Re: Contents of Wikimediauk-l digest..."
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>Today's Topics:
>
> 1. Re: An interesting article (e-mail freezetag)
>
>
>----------------------------------------------------------------------
>
>Message: 1
>Date: Mon, 23 Jul 2012 17:27:25 +0100
>From: e-mail freezetag <[email protected]>
>To: UK Wikimedia mailing list <[email protected]>
>Subject: Re: [Wikimediauk-l] An interesting article
>Message-ID:
> <CALQWWM53W2P_zjn=zj7jyppdj5n9+kndh1myphm+4s6+h9v...@mail.gmail.com>
>Content-Type: text/plain; charset="iso-8859-1"
>
>Nice article - I've added a comment.
>
>--
>Doug
>
>
>On 23 July 2012 09:54, Jon Davies <[email protected]> wrote:
>
>> From Nick Poole at the Collections Trust.
>>
>> 'We have just published a new article with Nick Stanhope from Historypin,
>> talking about participatory culture, which mentions Wikimedia UK - see:
>>
>> ** **
>>
>>
>> http://www.collectionslink.org.uk/discover/new-perspectives/1402-the-participatory-museum
>> ****
>>
>> ** **
>> ****
>>
>> **
>>
>>
>> _______________________________________________
>> Wikimedia UK mailing list
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>> http://mail.wikimedia.org/mailman/listinfo/wikimediauk-l
>> WMUK: http://uk.wikimedia.org
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>>
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