Geithner Says Capping Deductions Won’t Be Enough

Treasury Secretary Timothy F. Geithner said the U.S. must raise personal income-tax rates on the highest earners to reduce long-term budget deficits because capping deductions won’t raise enough revenue.

President Barack Obama is “not prepared to extend the upper-income tax cuts,” Geithner said yesterday at the Wall Street Journal’s CEO Council meeting in Washington. “There’s obviously universal support for the middle-class tax cuts. Doing that would remove the greatest source of anxiety and much of the greatest risk in the fiscal cliff.”