Geithner predicts Republicans will allow higher US tax rates

City A.M. Reporter
US PRESIDENT Barack Obama’s top fiscal negotiator pressed Republicans yesterday to offer specifics on deficit reduction, and predicted they would agree to raise tax rates on the rich to secure a year-end deal to avoid possible economic doom.

Treasury secretary Timothy Geithner said “I can’t promise” that the US won’t go over a looming fiscal cliff, triggering automatic tax hikes for most Americans and deep spending cuts in early 2013. He insisted it is up to Republicans.

“That’s a decision that lies in the hands of the Republicans that are now opposing an increase in tax rates” for the wealthiest Americans, a key sticking point in negotiations for a broad deficit-reduction deal, Geithner told Fox News Sunday.

Polls showing most Americans favour raising tax rates on the wealthy.