WASHINGTON Feb 14 U.S. Treasury Secretary
Timothy Geithner on Tuesday said economic growth would be hurt
by the year-end expiration of all the tax cuts enacted under
President George W. Bush, along with automatic federal spending
cuts also set to take effect.
But Geithner told the Senate Finance Committee that there
would be only a "modest" impact on growth under President Barack
Obama's proposal to extend most of Bush tax cuts, except those
for the wealthiest two percent of Americans.
"The president is proposing to extend the bulk of those tax
cuts," Geithner told the committee one day after Obama proposed
a $3.8 trillion budget plan to Congress.
Lower tax rates set during the Bush years on all individuals
will expire at the end of the year. In January, more than $1
trillion in spending cuts will be triggered in most government
programs unless lawmakers agree on a deal to cut the deficit.