(MENAFN) US Treasury Secretary, Timothy Geithner, stated that the country wouldn't be able to reach a fiscal deal if taxes on the rich are not increased, reported Xinhua News.
Geithner said that the US lost nearly USD1 trillion over a decade due to tax cuts imposed on the wealthy who earn over USD250,000 annually.
He noted that in order to resolve America's fiscal challenge, several measures must be taken, including raising tax revenues, reducing entitlement spending and introducing new stimulus programs to boost economic growth.
Earlier, Geithner presented a proposal to congressional leaders to avoid the "fiscal cliff" through increasing revenues by USD1.6 trillion over the coming decade. His proposal included nearly USD400 billion in spending reductions on entitlement programs and new stimulus spending; however, the proposal was reject by Republicans.
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