Geithner: Plenty of Room to Raise Taxes

U.S. Treasury Secretary Timothy F. Geithner said the U.S. has room to raise taxes without hurting the economy because its revenues make up a much smaller percentage of economic growth than those in other advanced economies.

“We have the capacity, with very modest changes in tax reform” to improve the country’s fiscal position without hurting future growth, Geithner said. The changes the Obama administration is seeking pose “no plausible risk” to how the economy grows, he said at an event in Washington.

Geithner said at an event in Washington that he did not expect any “enthusiasm” for a U.S. value-added tax.