Geithner: Economic doom without deal on deficit

Treasury Secretary Timothy F. Geithner on Sunday reiterated the Obama administration’s position that a large-scale, long-term deficit-reduction package must be in place by early August or the nation risks economic doom.

“We need to do something very big, very substantial to bring our deficit down over time,” the secretary said on NBC’s “Meet the Press.” “It’s going to take a balanced approached.”

Mr. Geithner’s comments came hours after House Speaker John A. Boehner, Ohio Republican, appeared to have
abandoned ongoing talks between congressional leaders and the White House over how best to lower the nation’s $14.3 trillion debt ceiling.

The Obama administration supports a package of spending cuts and tax increases on corporations that would lower the debt about $4 trillion. Mr. Boehner on Saturday night said he wants a much smaller deal without tax increases.

President Obama and Republican and Democratic leaders of both houses are Congress are scheduled to meet Sunday to try to work out a compromise.

Mr. Geithner urged Republicans not to walk away from the table.

“Both sides are going to have to make some compromises,” Mr. Geithner said. “And one thing to Republicans: We know this is very hard to do. But they should not walk away from trying to do something good for the country.”

Senate Minority Leader Mitch McConnell, Kentucky Reupblican, on Sunday said he was concerned the administration’s push for a $4 trillion reduction would lead to tax increases that would hurt businesses and average Americans.

“Everything [the administration] told me and the speaker is that to get a big package would require a big tax increase in the middle of [an] economic situation,” the senator said on “Fox News Sunday.” “That’s extraordinarily difficult, with 9.2 percent unemployment. We think it’s a terrible idea. It’s a job-killer.”