Treasury secretary Timothy Geithner insisted that the president and Congress would reach a deal on the debt limit on Face the Nation this morning.
“We’re going to have an agreement,” Geithner said. “The question is, are we going to have an agreement that’s good for the economy?”
Host Bob Schieffer agreed with Geithner that Congressional GOP leaders would not let the U.S. default, but he voiced concerns that the GOP’s rank-and-file was more cavalier about the debt.
“It’s not prevalent [among the rank-and-file],” Geithner maintained. “There’s just a lot of political theater in this business.”
As for the president’s insistence on tax increases, the secretary repeated, “We’re not going to do this [in a way] that leaves the burden all on middle-class Americans.”
And as for the suggestion that the secretary had engaged in scare tactics to get his way, Geithner assured Schieffer that August 2 was the “drop-dead date.”
“We have no other option to buy more time for Congress,” Geithner said. “And they don’t need more time.”
Later in the program, Sens. Jeff Sessions (R., Ala.) and Bill Nelson (D., Fla.) took up the debate. At one point, Nelson proposed to Session that they eliminate tax deductions to lower the rates. Sessions responded, “That’s a great position and I would support that but that’s not what the Democratic Senate budget does.”