Geithner urges Congress to end tax cuts for wealthy

WASHINGTON - Treasury Secretary Timothy Geithner said yesterday that the administration remained opposed to a permanent extension of tax cuts for the wealthiest Americans, something strongly favored by Republicans.

He said it was critical for Congress to resolve the issue before the end of the year.

Geithner said the administration wanted to see a permanent extension of the 2001 and 2003 tax cuts for families making less than $250,000 a year. He said a permanent extension of tax cuts for households making above that amount would be very expensive.

But during an appearance at a forum for corporate executives, Geithner seemed to leave the door open for a temporary extension of tax cuts for the wealthy. He said it was important to resolve the issue before the tax cuts expire on Dec. 31.

"It has to be done," Geithner said during his appearance before a business forum sponsored by The Wall Street Journal. "It is very important for Congress to act on this before they leave town. . . . It would not be a responsible act of government to leave this level of uncertainty hanging until next year."

Congress returned this week for a lame-duck session following the Nov. 2 midterm elections. One of the biggest agenda items is what to do with the tax cuts approved during the Bush administration in 2001 and 2003.

Geithner said the administration would approach the upcoming debate using the guiding principles of what would be best for economic growth and the middle class.

He said he believed the dispute could be worked out fairly quickly and that it was important to do so to resolve economic uncertainty.