Geithner Urges Republicans to Relent on Tax Hike Proposal

Treasury Secretary Timothy Geithner

The two sides of the deficit issue took to the Sunday morning talk shows airing their views on how to approach the looming fiscal cliff. The deadly combination of tax hikes and spending cuts will be automatically triggered at the end of the year if no compromise deal is reached between the sides.

Secretary of the Treasury Timothy Geithner, and Obama’s chief negotiator, urged Republicans to give specific ideas on ways to cut the deficit during his interview on CNN’s “State of the Union” television broadcast. He even predicted that the Republicans will agree to raise taxes on the wealthiest Americans in order to reach a deal by the end of the year and avoid and economic catastrophe.

Speaking on “Fox News Sunday” Republican Speaker of the House John Boehner begged to differ and reiterated his position against tax hikes, leaving the debate at an impasse.

"Here's the problem," Boehner told "Fox News Sunday" as both sides took their battle to TV talks shows. "When you go and increase rates, you make it more difficult for our economy to grow," he said.

Boehner added that if Republicans in the end did give in to Obama’s demand for $1.6 trillion in new tax revenue, “He’s going to spend it,” and not lower the deficit with the funds.

The Obama camp believes that they have the upper hand on the issue, giving Geithner the confidence to reiterate his stand that, "There's not going to be an agreement without rates heading up."

Polls show that most Americans support tax increases on the rich, and a few dissenters in what was in the past a solid wall of Republican opposition to such a move has convinced the Obama side that they will prevail on this issue.

About Amelia Jacobs

Amelia Jacobs began her career in business following a surprisingly successful trip to China. Having visited the region as a tourist, she returned to America as an import-exporter. Today, Jacobs runs a thriving import-export company, splitting her time between Chicago and Shanghai. Contact Amelia at amelia[at]