The White House is "absolutely" prepared to hold firm on the "fiscal cliff" if Republicans do not agree to let tax rates go up on the top 2 percent of the nation's taxpayers, according to Treasury Secretary Timothy Geithner.
The president's top economic adviser was resolute in a Wednesday interview, saying the administration would not budge and was willing to let the components of the fiscal cliff — expiring tax cuts and automatic spending cuts — occur if Republicans refuse to budge on taxes.
"If Republicans do not agree to that, is the administration prepared to go over the fiscal cliff?" asked CNBC reporter Steve Liesman.
"Oh absolutely," said Geithner. "We see no prospect for an agreement that doesn't involve those rates going up on the top 2 percent of the wealthiest."
Geithner also indicated that the president's push to take control of the nation's debt limit was a vital component to any agreement. The White House's original fiscal-cliff proposal included a provision that would let the administration raise the debt limit as needed, leaving Congress only the opportunity to pass measures, subject to a presidential veto, disapproving of the hike.
"We're not going to make the American people pay the price again for a group of minority Republicans who say they want to threaten default occasionally," he said.
For more on Geithner's comments, click here.
