–Treasury Secretary: ‘Completely Confident’ Of Debt Ceiling Hike
–‘Let’s See If We Can Do Corporate Tax Reform’
–‘Very Serious’ About Hope For Corporate Tax Deal
–House Tax Chief Camp: Agrees Debt Ceiling Hike Will Occur
–Rep. Camp: Wants To Work With Geithner On Corporate Tax Reform

By John Shaw

WASHINGTON (MNI) – Treasury Secretary Tim Geithner said Tuesday
that he is “completely confident” that Congress will pass legislation
this spring to increase the statutory debt ceiling.

In testimony before the House Ways and Means Committee, Geithner
repeated that failure to pass a debt ceiling increase in a timely way
would be hurt the recovery and damage the U.S.’s role in the world
economy.

It would be wrong to “create any uncertainty” regarding the debt
ceiling, Geithner said. The U.S. “has to meet its obligations” through
debt ceiling legislation.

During the two and a half hour hearing, Geithner spoke repeatedly
about wanting to work with both members of parties in Congress to
overhaul corporate taxes.

“Let’s see if we can do corporate tax reform,” he said.

He said the plan must be revenue neutral and should focus on
lowering corporate rates by scaling back exemptions and credits in the
code.

He said it should be possible to “lower rates very substantially.”

Geithner said he was “very serious” about reaching out to
Republicans in the House on this issue. He said the corporate tax
overhaul would not be designed to raise revenue for other purposes.

“When we say revenue neutral we mean revenue neutral,” he said.

Geithner said the administration continues to believe that the top
rate for capital gains and dividends should be 20%

The Treasury secretary said the economy is gaining strength, but
added that the “overwhelming priority” of policymakers should be to
sustain and expand economic growth.

Geithner said that the administration wants to reach a bipartisan
“multiyear plan to cut deficits.”

“It’s very important to find a way to fix our long-term deficits,”
he said.

He said passing deep spending cuts too soon could weaken the
economic recovery, a clear reference to the large spending cut package
under consideration in the House.

Geithner, in response to a question about TARP called it “the most
successful financial rescue in modern history.” He praised House Speaker
John Boehner for playing a “decisive” role in passing TARP in the fall
of 2008 when he was the House Minority Leader.

House Ways and Means Committee Chairman Dave Camp told reporters
that he believes Congress will pass a debt ceiling increase after the
stop-gap spending bill is dealt with.

“I believe we will get there,” he said of a debt ceiling increase.

Camp also said he is willing to work with Geithner on corporate tax
reform.

** Market News International Washington Bureau: 202-371-2121 **

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