Geithner Defends Jobs Plan On Capitol Hill

By Andrea Salazar

Treasury Secretary Timothy Geithner defended President Obama’s jobs plan before a Senate panel Tuesday, warning that failing to act could hurt the already shaky economy.

“If Congress does not act on these measures, then taxes will go up for virtually all working Americans,” Geithner said. “Taxes will rise for most businesses, businesses large and small. Unemployment rates will rise not fall. There will be fewer jobs for veterans and the long-term unemployed. The housing market will be weaker. Our damaged infrastructure will leave America’s businesses with growing costs, and cities and states will have to cut back further on critical services.”

Sen. Olympia Snowe (R-Maine), in response, warned that businesses need “clarity and certainty,” something she said those businesses are not getting with the administration’s tax and regulation policies.

“Uncertainty has a huge price tag and that price tag is being borne right now by the Americans unemployed, and that’s what we have to correct,” Snowe said. “I’m not here to find blame. I’m here to get the job done for the American people.” 

Although agreeing that tax reform is necessary, Geithner said lack of demand was more of a contributor to the challenges facing small businesses today than government regulaton.

Snowe also emphasized that temporary tax incentives are not the solution to the country’s economic problems saying businesses “don’t dare make a move because after 1 year, then what?”.

Geithner, however, said tax reform could take too long to work out, while temporary tax incentives could be “very powerful” in getting the economy growing faster now.

“In a situation like this, where growth is weaker, why you need to extend temporary tax measures is because if you don’t, the economy will be weaker,” Geithner said. “They’re not a substitute for long-term tax reform, but they’re a necessary complement.”

Republican Senators Seek To Retire TARP

John DuBois, University of New Mexico-Talk Radio News Service

Senators John Thune (R-S.D.) and Bob Bennett (R-Utah) introduced the TARP Sunset Act Tuesday in the hope of making sure the controversial program, meant to stabilize the U.S. financial system, does not extend beyond this year.

“Now is the time to end this program to ensure that additional taxpayer dollars are not wasted since TARP has devolved into a slush fund for the administration,” said Thune.

The TARP Sunset Act will eliminate Treasury Secretary Timothy Geithner's ability to spend outstanding funds after the end of 2009.

"[The] crisis has passed and the usefulness of TARP therefore is over,” said Benett. “It should be terminated is that this administration is using it like a revolving credit account.”

Has the Eye of the Economic Storm Passed?

By Courtney Ann Jackson-Talk Radio News Service

“The force of the economic storm is weakening a bit,” said U.S. Treasury Secretary Timothy Geithner yesterday. Geithner discussed proposed Fiscal Year 2010 budget for the Treasury Department and the Internal Revenue Service with members of the Senate Appropriations subcommittee.

“We’re working to repair and reform our financial system so that it works for, not against, recovery. We’re working to restore growth and meet our fiscal goals by redesigning our tax code, bolstering enforcement,” said Geithner. “We’re working to advance our interest globally, working with other countries to promote economic recovery and financial repair and to ensure more open markets for U.S. businesses.”

Geithner and the Treasury Department are seeking increases in multiple areas including an increase that will bolster the staffs of the U.S. domestic finance and tax policy offices. Other increases will contribute to community development institutions and IRS enforcement efforts. Geithner also said the increase in the budget proposal will allow the U.S. to “meet international obligations and to help us craft a global response to the crisis in this more integrated global economic system we live in today.”

Navigating through the Road Bumps in the Financial System

By Courtney Ann Jackson-Talk Radio News Service

We can’t let things go back to the way they were with the United States Financial System according to Treasury Secretary Timothy Geithner Monday. Geithner joined Newsweek Magazine editor, Jon Meacham, at a luncheon interview on the topic of the recession and what American’s should expect as the steps to recovery continue to be put into action.

“This is still the most challenging economic crisis that this country has seen in generations. It took a long time for these problems to build up," Geithner said. "It’s going to take time for us to work through them. We’re not going to have a steady, even process of repair, it’s going to be bumpy, still feel fragile for a while.”

Geithner expressed his sympathy for struggling Americans and said he understands why Americans are angry. He said that even as growth inevitably begins to turn positive, unemployment will continue to increase for awhile. He also said, “It’s not going to feel better for a long time for millions of Americans.”

As the administration continues to work its way through this economic crisis, Geithner believes they need to take a “fresh look” at the financial system as a whole. In terms of speed and quality of initiative that are already in progress, he said he thinks the administration is doing well.

“The American people want to see us moving to change things, not just waiting and hoping,” he said.

Meacham asked Geithner about people’s critique that the administration was being too lenient. Geither replied, “I actually think that what the President has put in place is the most aggressive approach to solving a financial crisis than we’ve seen from any serious country in a very long period of time.”

He also noted that they are doing more preventative work and referred to it as a type of insurance from a greater recession. They are working to make the system more stable and plan to release a new set of proposals in the next few weeks for reforming the oversight framework.

Small business was big business in Geithner hearing

by Christina Lovato, University of New Mexico-Talk Radio News Service


“This is a very good budget, because it’s an honest budget...Now just because this is an honest budget does not mean that this is an easy budget. The budget presents some difficult realities, and it presents some hard choices.” said Senate Finance Committee Chairman, Max Baucus (D-Mont).

Today in the Senate Finance Committee meeting, U.S. Treasury Secretary Timothy Geithner testified and expressed why President Obama’s budget plan will work. "We are absolutely committed to working with you on how to produce a package of reforms that meets the President's broad principles in a way that is fiscally responsible for the country...We wanted to put on the table, to improve the credibility of our commitment to do this, concrete proposals that would achieve that.” Geithner stated. 

Senator Chuck Grassley (R-IA) said that in 2007 small business created 74% of new jobs. “I don’t understand why you would charge small business operators more than you would charge corporations...I want to emphasize for the Secretary over half are between 20 and 500 employees. Those larger small businesses are also businesses most likely to expand or contract depending on business conditions.” he stated.

In addition to discussions about small business, taxes, and health care reform, Geithner expressed two critical functions that the government must accomplish to get the economy back on track. “We need to make sure that banks have the resources needed to provide credit to the economy...The basic machinery necessary for credit to work in our country is broken in some respects, the pipes are clogged...So a critical second part of our program is to act directly to get credit flowing again to get those markets to start opening up. The entire small business lending market, the auto finance market, the student loan market, the consumer credit markets depend on that machinery.” Geithner concluded.