During CNBC’s Delivering Alpha Conference this morning, Treasury Secretary Tim Geithner talked about many things pertaining to taxes, politics, the fiscal cliff and more. Geithner is defending the coming tax hikes (or tax cut expiration) but maintaining that tax hikes should apply to those who can most afford it rather than on most Americans. He also is still maintaining that the euro will survive the debt crisis even though he said that Europe has not done enough to resolve its debt and fiscal crisis.
Perhaps the most important issue is that Geithner rejected the idea that the United States is headed into another recession.
Geithner stated that the current slowing in the economy is a result of concerns over Europe and oil, and, interestingly, stems from lower government spending as well. He believes that Europe and the political dysfunction in the United States are key risks ahead.
In an interesting move, Geithner said the fiscal challenge of the United States is not complicated. His stance is still that tax reform needs to generate more revenues and that the United States is in need of more investment and fiscal reform. There also is still a support for higher taxes on carried interest and a support of the Buffett rule.
As far as the most recent Libor scandal, Geithner said that the Treasury and many other officials were worried and concerned back in 2008, and that they acted early and forcefully.
More details on Geithner’s Q&A with Larry Kudlow on CNBC are here.
JON C. OGG