Los Cabos, Mexico (CNN) - European leaders at the G-20 Summit discussed their desire for a "fiscal union" that will support their banks, U.S. Treasury Secretary Timothy Geithner said Tuesday.
Geithner said European leaders, meeting again late next week, want to design a long-term framework for stability and take immediate steps to back financial systems.
"What this means is a framework of reforms so they can stand behind their banks, provide capital to the banks that need it, make sure they're protecting the safety of their depositors," Geithner said.
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WASHINGTON (CNN) - The Treasury Department will unveil President Barack Obama's corporate tax reform plan Wednesday - a framework that would reduce the overall rate paid by corporations, a senior administration official told CNN.
The president's tax plan is intended to "enhance American competitiveness by simplifying the tax code and eliminating dozens of tax loopholes and subsidies, incentivizing job creation and investment here at home and lowering the business rate while broadening the tax base," the official said.
The proposal calls for lowering the overall corporate tax rate from 35% to 28%, and the effective rate for manufacturing to 25%.
The official, who laid out the plan's broad framework for CNN, said the proposal is essential to fixing a system that is "uncompetitive, unfair, and inefficient."
The official told CNN the lower rate would be largely funded by eliminating dozens of tax loopholes and subsidies, and broadening the business tax base.
He’s President Obama’s top economic advisor. But these days, Treasury Secretary Tim Geithner is delving into raw politics.
CNN caught up with Geithner at an Intel Corp. manufacturing plant in Chandler, Arizona Tuesday. Geithner’s location alone is significant: Arizona is key to the president’s reelection efforts – a swing state with 10 electoral votes where Obama garnered a respectable 45 percent of the vote in 2008 despite the fact that Arizona’s own John McCain was on the opposing ticket.
It was there the treasury secretary took a break from negotiating Europe’s financial future to instead sell the president’s jobs bill – and the president’s political message – with unusual force.
He slammed the House Republicans’ economic proposals while calling on the GOP to start acting immediately.
“I don't think there is a Republican plan for tax reform. And there is no Republican plan to create jobs and economic growth,” said Geithner, adding later, “Unless the Republicans are willing to do more things to help the economy right now, then unemployment will stay too high.”
And he didn’t shy away from campaign politics either, when asked about Republican presidential frontrunner Mitt Romney’s lengthy debt reduction plan that calls for significant government cuts.
“You can't cut your way to growth,” Geithner said. “We're in the middle of a very important debate about what the government can do and should do to make the economy stronger. But it would make us weaker as a country if we were to go out and cut our way to growth.”