|Source: Treasury's Flickr page|
Here is an excerpt from Geithner's interview (highlight added):
"We think there's a good chance that, by starting to lay a foundation for reform now, working with Democrats and Republicans, we can improve the odds that reform comes sooner than it otherwise would and in terms that are better for the economy long term. You know, at the end of this year, Congress faces some very difficult decisions, because you see -- you're going to see the Bush tax cuts all expire without legislation. The sequester, automatic cuts in spending, pretty substantial, will hit automatically unless there's a broader agreement, bipartisan agreement, that combines tax reform with efforts to help reduce long-term deficits. That creates a very powerful motivation for Congress to act. And what we're trying to do is lay the foundation for key elements of tax reform that'll be good for the economy as part of that ultimate progress. So we hope there's a chance to move. I think you heard Chairman Camp say this morning that, you know, it is a political moment, but things can happen even in election years."
The Treasury Secretary's remarks were to emphasize President Obama's Business Tax Reform framework that was released a few days earlier. I'm working on an article summarizing the proposals from this framework, recent Greenbooks, the PERAB tax reform task force report, the deficit reduction commission's report and President Obama's September 2011 budget plan (the one that introduced the Buffet rule). That will also note strengths and weaknesses in what all of these proposals offer.
What do you think regarding the prospects of any significant tax changes at year end?