Treasury Secretary Timothy Geithner said Tuesday that a deal to raise the legal debt limit, which he expects to be completed in the next few weeks, will be only a short-term “down payment” on solving the nation’s debt problem, and that it would be “irresponsible” to reduce the massive federal deficit anticipated over the next ten years with spending cuts alone.
What is needed, he said, is a longer-term deal on a “balanced framework” that includes “revenue increases through tax reform.”
Geithner said negotiations with Congress over such a longer-term plan could be completed within the “next few months.”
In the vernacular, when the government changes the tax laws to extract more tax revenue from citizens it is called a tax increase.
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