Treasury Secretary Timothy Geithner says he expects to see growth in U.S. jobs and income in the months ahead, praising government leaders for “breaking the back of this recession” one year after his boss approved a massive stimulus bill.
Geithner said in a trip to North Carolina that officials have been successful in restarting economic growth and that it is now important to reinforce that process. He said the economy is starting to heal and will continue getting better.
“We’re going to start to see job growth increase and incomes increase for Americans in the months and year ahead,” Geithner said on the anniversary of President Barack Obama’s signing of a $787 billion stimulus bill.
The treasury secretary was in Durham as part of the Obama administration’s effort to restore demand in tax credits offered to those who invest in low-income communities. Interest in the tax credits has wavered during the economic downturn, with a federal report estimating that investments spurred by the New Markets Tax Credit program fell some 20 percent in 2009.
Geithner suggested that Congress make changes to the incentives program to spur more investment, such as allowing investors to use the tax credits to offset the Alternative Minimum Tax. He visited a business development in Durham that was partially funded through the program.
“Investment is like oxygen. Credit is like oxygen,” Geithner said. “One of the biggest problems that distressed communities face is attracting new investment.”
“Communities like these will be the engine of renewal in this country,” he said at a round table of local business and government leaders.
Last year’s stimulus package included an extra infusion of cash for the tax credit initiative. The administration’s proposed budget for next year also expands the program.
Geithner said he was also closely monitoring the details of a Thursday plane crash in Austin, Texas, in which a man angry with an IRS crashed a plane into an office building filled with employees from the tax-collection agency.
“This is of deep concern to me, to the great public servants of the IRS and to the entire Treasury Department community,” Geithner said. “Our thoughts and prayers go out to all those affected by this terrible event.” (AP)
