- The Washington Times - Wednesday, August 4, 2010

TREASURY

Geithner: Extending tax cuts a mistake

Treasury Secretary Timothy F. Geithner said Wednesday that extending the Bush-era tax cuts for the wealthier would be a $700 billion mistake.

Mr. Geithner said cuts for families making more than $250,000 annually should be allowed to expire on schedule at the end of the year. But the administration thinks tax cuts for the 95 percent of taxpayers making less than $250,000 should be extended, he said.

Mr. Geithner’s comments came during a speech at the Center for American Progress, a liberal think tank, and focused on what is likely to be a key economic battle leading up to the November midterm elections. Unless Congress acts, all of the tax cuts approved in 2001 and 2003 will expire at the end of December.

Republicans have argued that all of the tax cuts should be extended. They contend that raising taxes on any group at the current moment would be harmful for the economy.

Mr. Geithner said extending the tax cuts for the top 2 percent of taxpayers would cost $700 billion over a decade and $30 billion for a single year. He said wealthier families are more likely to save the money, which doesn’t help the economy in the short run.

PENNSYLVANIA

Clinton to stump for Senate nominee

SCRANTON | Former President Bill Clinton is scheduled to campaign for U.S. Senate candidate Joe Sestak in Pennsylvania, months after trying in vain to persuade the congressman not to run.

The Democratic congressman is running against Republican Pat Toomey for the seat held by outgoing Democratic Sen. Arlen Specter. The Sestak campaign says Mr. Clinton will appear with Mr. Sestak on Tuesday afternoon at a rally at Scranton High School.

At the request of the White House, Mr. Clinton had tried to get Mr. Sestak to drop his primary challenge of Mr. Specter by offering him an unpaid presidential advisory position. Mr. Sestak turned Mr. Clinton down and went on to defeat Mr. Specter.

In the 1990s, Mr. Sestak, a retired admiral, worked in the Clinton administration as director for defense policy on the National Security Council.

SENATE

Senators again seek border security cash

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