Yellen Defends Biden’s Proposal to Raise Taxes

Janet Yellen, the Treasury Secretary defended President Biden’s effort to raise taxes for big corporations and individuals with high earnings, to help massive infrastructure funding package, with the economy recovering from the pandemic, informed The Hill.

In an appearance before the House Financial Services Committee, Yellen defended Biden’s proposal saying that it is essential for the U.S. “to raise revenues in a fair way to support the spending that this economy needs to be competitive and productive.”

“A package that consists of investments in people, investments in infrastructure will help to create good jobs in the American economy and changes to the tax structure will help to pay for those programs,” told Yellen to the lawmakers.

The plan is to focus nearly $3 trillion in the improvement of U.S. infrastructure, opening more manufacturing job places, adapting the country to climate-related risks and expanding job and education training on the way.  Is expected the plan to be accompanied with increases to the taxes on capital gains, corporate income tax rate and the top individual income tax rate.

Republicans do not agree with this measure, saying that spending that amount, with recently passed $1.9 trillion COVID-19 relief bill and increasing the taxes will disrupt the economy recovery process.

“We know that raising the corporate tax rate results in higher costs for small businesses, schools and American households,” said Rep. Ann Wagner (R-Mo.).

“Then why, as this country begins to reopen and recover economically, would the Biden administration be proposing tax policy which would in the end hurt the American family and millions of struggling small businesses?” she added.

Yellen defended the measure, saying that the proposal will help households by boosting productivity and the labor force.

“This administration is not going to propose policies that hurt small businesses or Americans. The administration is going to propose investments this economy has long needed to be competitive and productive,” said Yellen.