Geithner testifying before House Fin Services today on New Basel rules; Bush Tax Cuts

testifying before House Fin Services today and said US banks can meet the new Basel rules out of retained earnings instead of cutting back on lending.  “The U.S. financial system is in a very strong position internationally to adapt to the new global rules,” Geithner said. “For the most part, banks should be able to meet these new requirements through future earnings, which will help protect the recovery currently under way.”  Bloomberg

 

Taxes – not only are the Bush tax rates in jeopardy, but Obama’s “Making Work Pay” credit also would wind up lapsing.  “Senate Democrats struggled Tuesday to develop a plan to extend the Bush-era breaks for middle-class people, and it is doubtful the Making Work Pay credit would be included”.  WSJ 

· Taxes – Baucus to publish his tax bill in the near-term; Baucus's tax bill is expected to propose that the expiring Bush-era tax rates for families making less than $250,000 be made permanent. It is also expected to provide only two more years of relief for middle-class families from the alternative minimum tax. It would reimpose the estate tax.  WSJ