Doing its part to muddle the tax debate, Fox & Friends falsely claimed this morning that Treasury Secretary Tim Geithner and Fed chair Ben Bernanke are “in disagreement” over the Bush tax cuts. Fox's on-screen text also asserted: “Battling over Bush tax cuts: Bernanke & Geithner clash on tax policy”:

In pushing this false narrative, Fox & Friends distorted remarks made by both Geithner and Bernanke.

Co-host Brian Kilmeade stated that “on Thursday, Ben Bernanke basically said that it probably wouldn't hurt to leave those tax rates in place for the [top] 2 percent.” Later in the show, Co-host Gretchen Carlson claimed:

CARLSON: Fed Reserve chair Ben Bernanke said the economy is not on track and that the Bush tax cuts should be extended. But Treasury Secretary Tim Geithner says they will expire as scheduled.

Problem is, the remarks made by Bernanke and Geithner don't at all indicate that they “clash on tax policy.”

First, Geithner didn't say that all of the Bush tax cuts “will expire as scheduled,” as Carlson suggested. He said that “what the President's proposing to do is to leave in place, to extend tax cuts that go to more than 95 percent of working Americans ... Now, we also think it's responsible to let the tax cuts expire that just go to 2 percent to 3 percent of Americans, the highest earning Americans.” He further stated of the Bush tax cuts, "[W]hat the president's proposed is to make sure we're leaving them in place for the people that need the most and can make the most difference in helping make sure this economy comes back."

Second, Bernanke didn't endorse extending the Bush tax cuts for the top 2 percent of income earners, as Kilmeade claimed. When asked in a July 22 House Financial Services Committee hearing about the Bush tax cuts, Bernanke stated:

BERNANKE: [T]here are a number of different issues there.

There are first of all considerations of efficiency and growth and the relationship between the incentives generated by that, which I know is debated and will continue to be debated. But there are also issues of both short-term stimulus and long-term budget stability.

In the short-term, I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy. There are many ways to do that. This is one way. There are other ways as well.

In the longer term, I think we need to be taking steps to reassure the American people and the markets that our fiscal situation is going to be well controlled.

So Bernanke vaguely endorsed “a reasonable degree of fiscal support” and said that extending tax cuts is one way to do that. As Bloomberg News reported, Bernanke “didn't endorse either party's position” on whether the tax cuts for the wealthiest Americans should be extended. During the hearing, Bernanke said he is “reluctant to take positions on specific tax and spending measures.” He later added that not all fiscal stimulus programs are made equal, stating that it's important to “look at every program and try to judge how effective it is and will it provide support for long-run growth.”

To review, Geithner said the Bush tax cuts should be extended for the vast majority of Americans. Bernanke said extending tax cuts is one way to provide fiscal support for the economy. And according to Fox, these two men are “battling” over tax policy.