Geithner Catches Hell By House Rep Over “Blame-Bush” Economics
Feb 3, 2010 2 Comments ›› Erik Wong
Treasury Secretary Timothy Geithner, going toe to toe with lawmakers Wednesday in defense of President Obama’s proposed budget, heard point blank from one critic that the administration can only blame Bush for so long.
At a House Ways and Means Committee hearing, lawmakers — weary of record deficits, wary of the president’s tax ideas and nervous about winning re-election in November — questioned Geithner on Obama’s proposed $3.83 trillion budget that would impose nearly $1 trillion in higher taxes on couples making more than $250,000 and individuals making more than $200,000 by not renewing tax cuts enacted under former President George W. Bush.
“Why aren’t you giving us a budget that using your own definition and standards is sustainable,” said Rep. Paul Ryan, R-Wis., the ranking member of the House Budget Committee.
“Congressman, we’re proposing a budget that takes the huge mess we inherited, cuts that deficit…” Geithner said before Ryan cut him off.
“You can blame Bush only so long,” Ryan said.
“It’s just a factual thing,” Geithner said.
The exchange reflected Democrats’ strategy of blaming Bush for the economy’s current troubles and Republicans pushing back to assign responsibility to the Obama administration.
The administration argues that Obama inherited a deficit that already was topping $1 trillion when he took office and, given the severity of the downturn, the president had to spend billions stabilizing the financial system and jump-starting economic growth.
Obama’s tax and spending plan raises more taxes than it cuts, while still posting a record-breaking $1.56 trillion deficit — an amount equal to about 42 cents for every dollar the government is spending.
Geithner also touted a new bank fee aimed at recouping “outrageous” bonuses for AIG employees.
American International Group Inc. is set to pay out about $100 million in a fresh round of bonuses to employees. Geithner called the bonuses, which were negotiated years ago, an “outrageous failure of policy.”
The fee, which would be assessed on certain liabilities of the largest firms in the financial sector, would raise about $90 billion over the next decade.
