Tipton takes on Geithner over ending tax breaks
U.S. Rep. Scott Tipton, R-Colo., and Treasury Secretary Timothy Geithner sparred Wednesday on the Obama administration’s desire to revert to the Clinton-era tax code for high earners.
Eliminating the Bush tax cuts and going back to the previous tax code would affect only 3 percent of small businesses, Geithner testified before the House Small Business Committee on Wednesday.
Retaining the current rates, which include the Bush tax cuts, for the top 2 percent of earners means the nation has to borrow $700 billion, Geithner said after agreeing with Tipton that the nation’s economy has a long way to go to recover.
Geithner was wrongly dismissive of how reverting to the Clinton-era tax code would affect the 3 percent of small businesses, Tipton said.
“There are 770,000 small businesses and 27 million jobs reflected in that 3 percent,” Tipton said later.
The Bush tax cuts include reduced capital-gains and reduced high-income marginal rates from 39.6 percent to 35 percent.
The first priority for the government should be increasing employment, “which would create taxpayers,” Tipton told Geithner. “It will create revenues if you get people back to work.”
Tipton also invited Geithner to visit the 3rd Congressional District, which includes most of the Western Slope and much of southern Colorado.
“The 3rd Congressional District of Colorado has not seen the ship righting,” Tipton said of the economy, noting many communities “are not in a recession, but in a depression.”