Treasury Secretary Timothy Geithner called on Congress to keep working together following an agreement on extending the payroll tax cut and unemployment insurance. He defended the President’s 2013 budget request before the House Budget Committee, while admitting that the proposal does not address long term budget deficits caused primarily by health care costs.
On Tuesday, Sec. Geithner said President Obama's $3.8 trillion package will "reduce deficits significantly over time and put the nation back on a sustainable budget path." The proposal includes raising revenues, one of which is a tax hike on the top two percent of wage earners.
Republicans have argued that the increase will only hurt small businesses who are the main job creators.