26 December 2012 Last updated at 17:30 ET
Mr Geithner said the moves were needed to avoid default on legal obligations
Continue reading the main story[h=2]US Economy[/h]
The US Treasury is to begin taking extraordinary measures to delay reaching a 31 December borrowing limit.
Treasury Secretary Timothy Geithner said it would take accounting measures to save about $200bn to prevent reaching the $16.4tn borrowing limit.
The move comes as the so-called "fiscal cliff" looms.
This is a round of tax increases and huge spending cuts due to come into force in January but over which the Democrats and Republicans are stalled.
'Default'In a letter to Congress, Mr Geithner said the $200bn (£124bn) would prevent the government from reaching the borrowing limit for about another two months.
Continue reading the main story[h=2]What is the fiscal cliff?[/h]
This $16.4tn is the amount the government is allowed to borrow to finance its operations.
Mr Geithner said the extraordinary measures were needed to "temporarily postpone the date that the United States would otherwise default on its legal obligations".
President Barack Obama is expected to meet Republican leaders again to try to negotiate a solution, although no new date has been announced.
Failure to do so could damage the US and global markets, and threatens to send the US economy into recession.
The two sides remain far apart on the fiscal cliff's $600bn in tax rises and spending cuts that are set to come into force on 1 January, but analysts say a short-term deal may be agreed that will postpone the cuts until spring.
On Wednesday, the Republican House of Representatives Speaker John Boehner called on the Democrat-led Senate to come up with legislation on how it would avoid the cliff, and pass it to the House for consideration.
However, a senior administration official said it was up to Republican leaders not to stand in the way of an agreement.
[TABLE="class: data-table"]
[TR="class: heading"]
[TH="class: left, colspan: 9"][h=2]Changing taxation across the years[/h][/TH]
[/TR]
[TR="class: colheading"]
[TH="class: left"]Tax year[/TH]
[TH="class: left"]1993-2000[/TH]
[TH="class: left"]2001[/TH]
[TH="class: left"]2002[/TH]
[TH="class: left"]2003-2008[/TH]
[TH="class: left"]2009-2012[/TH]
[TH="class: left"]2012 tax brackets[/TH]
[TH="class: left, colspan: 2"]2013 scenarios[/TH]
[/TR]
[TR]
[TD="class: left, colspan: 9"]Source: Tax Foundation, IRS
Tax brackets shown for unmarried individuals
[/TD]
[/TR]
[TR]
[TD="class: left"]President
[/TD]
[TD="class: left"]
Bill Clinton
[/TD]
[TD="class: left, colspan: 3"]
George W Bush
[/TD]
[TD="class: left"]
Barack Obama
[/TD]
[TD="class: left"]Tax cuts expire
[/TD]
[TD="class: left"]Tax cuts expire for top incomes
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]Bottom rate
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]Up to
$8,700
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]10%
[/TD]
[/TR]
[TR]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]$8,700-$35,350
[/TD]
[TD="class: left"]15%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]28%
[/TD]
[TD="class: left"]27.5%
[/TD]
[TD="class: left"]27%
[/TD]
[TD="class: left"]25%
[/TD]
[TD="class: left"]25%
[/TD]
[TD="class: left"]$35,350- $85,650
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]25%
[/TD]
[/TR]
[TR]
[TD="class: left"]31%
[/TD]
[TD="class: left"]30.5%
[/TD]
[TD="class: left"]30%
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]$85,650- $178,650
[/TD]
[TD="class: left"]31%
[/TD]
[TD="class: left"]28%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]36%
[/TD]
[TD="class: left"]35.5%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]33%
[/TD]
[TD="class: left"]33%
[/TD]
[TD="class: left"]$178,650-$388,350
[/TD]
[TD="class: left"]36%
[/TD]
[TD="class: left"]33%
[/TD]
[/TR]
[TR]
[TD="class: left"]36%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]Top rate
[/TD]
[TD="class: left"]39.6%
[/TD]
[TD="class: left"]39.1%
[/TD]
[TD="class: left"]38.6%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]Over
$388,350
[/TD]
[TD="class: left"]39.6%
[/TD]
[TD="class: left"]39.6%
[/TD]
[/TR]
[/TABLE]
Continue reading the main story[h=2]US Economy[/h]
- Q&A: The US fiscal cliff
- Who first called it a 'fiscal cliff'?
- Death, taxes and the GOP
- US v Europe: Which is worse?
The US Treasury is to begin taking extraordinary measures to delay reaching a 31 December borrowing limit.
Treasury Secretary Timothy Geithner said it would take accounting measures to save about $200bn to prevent reaching the $16.4tn borrowing limit.
The move comes as the so-called "fiscal cliff" looms.
This is a round of tax increases and huge spending cuts due to come into force in January but over which the Democrats and Republicans are stalled.
'Default'In a letter to Congress, Mr Geithner said the $200bn (£124bn) would prevent the government from reaching the borrowing limit for about another two months.
Continue reading the main story[h=2]What is the fiscal cliff?[/h]
- On 1 January 2013, tax increases and huge spending cuts are due to come into force - the so-called fiscal cliff
- Deadline was put in place in 2011 to force president and Congress to agree ways to save money over the next 10 years
- Fear is that raising taxes while massively cutting spending will have huge impact on households and businesses
- Experts believe it could push the US into recession, and have a global impact on growth
This $16.4tn is the amount the government is allowed to borrow to finance its operations.
Mr Geithner said the extraordinary measures were needed to "temporarily postpone the date that the United States would otherwise default on its legal obligations".
President Barack Obama is expected to meet Republican leaders again to try to negotiate a solution, although no new date has been announced.
Failure to do so could damage the US and global markets, and threatens to send the US economy into recession.
The two sides remain far apart on the fiscal cliff's $600bn in tax rises and spending cuts that are set to come into force on 1 January, but analysts say a short-term deal may be agreed that will postpone the cuts until spring.
On Wednesday, the Republican House of Representatives Speaker John Boehner called on the Democrat-led Senate to come up with legislation on how it would avoid the cliff, and pass it to the House for consideration.
However, a senior administration official said it was up to Republican leaders not to stand in the way of an agreement.
[TABLE="class: data-table"]
[TR="class: heading"]
[TH="class: left, colspan: 9"][h=2]Changing taxation across the years[/h][/TH]
[/TR]
[TR="class: colheading"]
[TH="class: left"]Tax year[/TH]
[TH="class: left"]1993-2000[/TH]
[TH="class: left"]2001[/TH]
[TH="class: left"]2002[/TH]
[TH="class: left"]2003-2008[/TH]
[TH="class: left"]2009-2012[/TH]
[TH="class: left"]2012 tax brackets[/TH]
[TH="class: left, colspan: 2"]2013 scenarios[/TH]
[/TR]
[TR]
[TD="class: left, colspan: 9"]Source: Tax Foundation, IRS
Tax brackets shown for unmarried individuals
[/TD]
[/TR]
[TR]
[TD="class: left"]President
[/TD]
[TD="class: left"]
[/TD]
[TD="class: left, colspan: 3"]
[/TD]
[TD="class: left"]
[/TD]
[TD="class: left"]Tax cuts expire
[/TD]
[TD="class: left"]Tax cuts expire for top incomes
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]Bottom rate
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]10%
[/TD]
[TD="class: left"]Up to
$8,700
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]10%
[/TD]
[/TR]
[TR]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]15%
[/TD]
[TD="class: left"]$8,700-$35,350
[/TD]
[TD="class: left"]15%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]28%
[/TD]
[TD="class: left"]27.5%
[/TD]
[TD="class: left"]27%
[/TD]
[TD="class: left"]25%
[/TD]
[TD="class: left"]25%
[/TD]
[TD="class: left"]$35,350- $85,650
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]25%
[/TD]
[/TR]
[TR]
[TD="class: left"]31%
[/TD]
[TD="class: left"]30.5%
[/TD]
[TD="class: left"]30%
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]28%
[/TD]
[TD="class: left"]$85,650- $178,650
[/TD]
[TD="class: left"]31%
[/TD]
[TD="class: left"]28%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]36%
[/TD]
[TD="class: left"]35.5%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]33%
[/TD]
[TD="class: left"]33%
[/TD]
[TD="class: left"]$178,650-$388,350
[/TD]
[TD="class: left"]36%
[/TD]
[TD="class: left"]33%
[/TD]
[/TR]
[TR]
[TD="class: left"]36%
[/TD]
[/TR]
[TR="class: row2"]
[TD="class: left"]Top rate
[/TD]
[TD="class: left"]39.6%
[/TD]
[TD="class: left"]39.1%
[/TD]
[TD="class: left"]38.6%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]35%
[/TD]
[TD="class: left"]Over
$388,350
[/TD]
[TD="class: left"]39.6%
[/TD]
[TD="class: left"]39.6%
[/TD]
[/TR]
[/TABLE]