Bush-era tax cuts for rich must end, says treasury secretary
Wealthy Americans should pay higher taxes to help clear the country's record debts, the US treasury secretary said yesterday.
Timothy Geithner said that it was now "responsible" to allow a series of tax cuts introduced by President George W Bush to expire at the end of the year. This will lead to a wide range of taxes on income, capital gains and inheritance increasing for Americans earning more than $250,000 (€195,000). The forthcoming tax rises could dominate this autumn's midterm elections, with Republicans threatening to do everything in their power to block the plans.
Senior Republicans believe that the tax rises will hit business owners and set back America's lacklustre economic recovery.
Mr Geithner said the taxes would show America was "willing as a country now to start to make some progress" to reduce government debts.
America has an annual budget deficit of more than €1.2 trillion. (© Daily Telegraph, London)