Money | Timothy Geithner Geithner to World: Relax, We're Raising Taxes Axing the Bush tax cuts is just the start By Kevin Spak Posted Aug 5, 2010 12:04 PM CDT Copied Treasury Secretary Timothy Geithner gestures while speaking at the Center for American Progress forum on a "Pro-Growth Strategy," Wednesday, Aug. 4, 2010, in Washington. (AP Photo/Manuel Balce Ceneta) Tim Geithner said something pretty interesting about the Bush tax cuts in his speech yesterday at the Center for American Progress. The Treasury secretary explained why the administration was letting the tax cuts for the wealthiest 2% of Americans expire now. “The world is likely to view any temporary extension … as a prelude to a permanent extension,” he said, which would undermine world confidence in our willingness to reduce future deficits. Essentially, Geithner revealed that “the tax hike is all about signaling something to the rest of the world,” writes Joe Weisenthal of Business Insider. The idea is that we can only continue our massive deficit spending if the world believes we’ll eventually stop. “It’s the ‘stimulus in the front; austerity in the rear’ plan all over again,” he contends, and if we can’t even raise taxes on the top 2%, it sends the opposite signal: “We’re doomed.” Read These Next Trumps ends trade talks with Canada. Gavin Newsom has filed a massive lawsuit against Fox News. New York Times ranks the best movies of the 21st century. Supreme Court gives Trump big win on national injunctions. Report an error