You're watching...
In an exclusive interview with FBN’s Liz Claman, Treasury Secretary Timothy Geithner talks about efforts to reform the corporate tax system without ...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Is of the year for Wall Street -- -- -- sitting down exclusively -- Treasury Secretary Timothy Geithner in Chicago Israelis claim and joining us now live variances in the -- to -- Geithner has the same is take it away.
Breaking news from Chicago here at the fort Chicago stamping plant.
Where they make the actual pieces that we have put display behind us.
That of course put together an assembled -- -- here he came after speaking with the economic club of Chicago.
Talking about a wide ranging bunch of issues however -- drill down and a fox this is exclusive.
And asked him specifically about all kinds of things -- -- when he asked to say about corporate taxes.
What kind of loopholes would still be allowed and what once he doesn't think should be.
In the meantime I also began by asking him the state of the US economy is he sees it as he tours businesses around the United States.
What I -- is a critical across the country -- people who are making things running businesses.
But to get a better feel for what's happening in economy -- strong with such a strong tend to get some advice what we can do and I think what's really encouraging about what's happening now is.
You see here in this plan BBC and manufacture cross country it's it's is getting stronger exports are rising very rapidly.
Investments increasing people come back to work but this place -- get a lot of new business that's very encouraging and it helps remind people that even with data this tough economy.
But -- jobs is ahead.
We are really getting stronger and there's a lot of strength here to.
Edits taxis and so the corporate tax yet that's exactly four this is really really important here we have -- we that this is Texas and as you know that it was designed for different era.
We have one of the highest gesture rates in the world.
Our effective tax rates are -- are competitors the larger competitors but these saturates very high.
What that means is is that.
Businesses -- very different taxes -- and come across industries on tape very very little.
Some pay a lot -- to the average and that's unfair he doesn't make sense it's like but we're a country means that your tax lobbyists -- Texans here sermons.
How well you do not not not -- not to call your products -- you are not that's a that system we should be changing.
So wanting to do is to change the system so that -- we're strengthening incentives.
For people to build and create things here in the United States.
And you know you're seeing that happen you're seeing manufactured it manufactures bring back production from places like China from Mexico and we -- -- reinforce that process.
Well when it comes to corporate tax reform everybody's waiting with baited breath now a year ago you testified before congress and you said that the corporate tax reform would be revenue neutral.
Then a year later the Obama administration comes out with a plan that adds quote in -- says that the business sector will be asked to contribute.
To restoring fiscal sustainability to the tune of about 250 billion dollars that what happened between a year ago and now.
Good question thanks rescued and you know we're gonna do this in a way that's responsible which -- -- a way that does not add to future deficits because.
We just really can.
Expect.
The rest of the American economy individuals to bear.
Well more debt -- -- we're gonna do it with does not add to future deficits and our basic principle is us as we lower rates broaden the base clean up the system.
And strengthening incentives for investing in this country we're gonna make sure that the things we preserve.
Are things -- -- he has to pay for and that's the way that's yet need to make sure it's not -- to future deficits it's it's that simple pragmatic straight -- conservative principle.
So a year ago -- -- -- was that there would be.
Revenue neutral it does -- change in the so principle is that we're not gonna add to future deficits sponsored -- -- form.
And we're gonna make sure that the -- says we preserved in the tax system.
We can eliminate dozens and dozens of them but those who preserve we got to make sure that we're paying for if you don't tax cuts our entry.
And we can afford it let me borrow money to finance -- -- that's that's the basic cut conservative principle underpins the strategy well.
Course the whole point scrapping dozens of loopholes and all kinds of subsidies some -- and everybody's got -- don't touch my son who really do have.
An opportunity to help manufacturers like six for example Ford write offs of research and experimental.
What something like that survive.
Should the should our our view the president's view is you wanted to you could eliminate dozens and dozens what you want -- preserves those things that you are confident.
Are necessary and valuable.
And improving in -- investing here so making permanent.
-- more generous reformed tax credit for research and development as it is a very good idea -- and we're completely committed to.
So you'll keep that -- Republicans have come up with their plants all over the place not just speech in this morning that you get the economic club of Chicago.
You called their plant or at least some of their plans -- dark and pessimistic vision of America.
Why.
Well -- we're having a great today.
About how to make the country stronger and how to improve opportunity for the average American how to improve economic security for the average American.
And our judgment our strategy is that -- growth strategy to the country is to make sure that.
As we -- and it has caused by the crisis and as we bring that our long term fiscal deficits we're preserving room for investing in things that.
Will -- get help improve opportunity for the average American that means investing in education and training.
Giving people tax credits they can afford to college improving the overall quality of education -- means investing in infrastructure.
Huge long term heard of this country very important make this more competitive.
Make sure we're investing in basic science and research things it'll make sure we have better jobs in the future.
And we're trying to make sure we have reforms in place like in the financial system so that the -- is doing a better job of financing future growth.
And so.
That's -- more we think it's a better growth strategy for the country.
And it requires that you take a broader look at what the government can do better when did not approach this should narrow prism that.
You can somehow make.
Critical to --
