Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Biden's tax hike, spending plans to boost profits, Yellen tells U.S. Chamber

Economic IndicatorsMay 18, 2021 01:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Former Federal Reserve Chairman Janet Yellen speaks during a panel discussion at the American Economic Association/Allied Social Science Association (ASSA) 2019 meeting in Atlanta, Georgia, U.S., January 4, 2019. REUTERS/Christopher Aluka Ber

By David Lawder

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen tried to sell President Joe Biden's $2.2 trillion corporate tax hike and infrastructure plans to the U.S. Chamber of Commerce on Tuesday, saying that the proposals will improve the profitability and competitiveness of American corporations.

Yellen told a Chamber online conference that the "American Jobs Plan" infrastructure investments would have a direct payoff to the American people, create jobs and simply "return the corporate tax rate toward historical norms."

"We are confident that the investments and tax proposals in the Jobs Plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness. We hope that business leaders will see it this way and support the Jobs Plan," she said.

Yellen is taking her pitch for Biden's tax and spending plans directly to an organization that is deeply opposed to raising the corporate tax rate, which was cut to 21% from 35% by the Trump administration and Republicans in Congress in 2017. Biden is proposing to raise the rate to 28%, while negotiating a global minimum corporate tax with major economies.

CHAMBER NOT PERSUADED

Chamber CEO Suzanne Clark said after Yellen's remarks that tax hikes would erect a barrier to economic recovery from the COVID-19 pandemic.

"The data and the evidence are clear, the proposed tax increases would greatly disadvantage U.S. businesses and harm American workers," said Clark, who took over leadership of the influential business lobby group in March.

"The administration is right to champion infrastructure, and we want to be there with them to do that, but there are other ways to finance it," she added.

The Chamber has favored more traditional means of infrastructure financing, such as increased fuel taxes and other user fees.

Biden's proposal goes well beyond traditional infrastructure such as roads and bridges and proposes to invest in broadband networks, research and development, modernized schools and expanded child care to bring more women into the workforce.

Yellen said that the package will "make up for lost time" in investing in renewable energy technologies and protecting against cyber threats.

"The transition to a greener economy will provide a multi-decade boost to the economy, creating jobs along the way as the private sector participates in the development of new technologies, new investments, and the new products that will drive the global economic transformation."

Yellen also said Biden's American Families Plan will enhance education from early childhood to community college to help build a competitive workforce and fight childhood poverty. The plan would be financed by increases in tax rates for the wealthiest Americans and higher capital gains taxes for those earning more than $1 million a year.

She also said that in the areas of trade and investment, the Biden administration will fight for a level playing field and "confront adversaries who take advantage by ignoring or abusing rules and norms of behavior".

Biden's tax hike, spending plans to boost profits, Yellen tells U.S. Chamber
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (20)
Catholic Man
CatholicMan May 20, 2021 9:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Raise taxes but fole out more more money. Either circular logic or redistribution..
Catholic Man
CatholicMan May 20, 2021 9:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dole
Catholic Man
CatholicMan May 19, 2021 2:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How can you look at the data and come to the completly wrong conclusion? Almost as if you want to ruin the economy on purpise.
Red Riley
Red Riley May 18, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Medusa
Siddhartha Debgupta
Siddhartha Debgupta May 18, 2021 8:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Janet is yelling again.
Ominous Owl
Ominous Owl May 18, 2021 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The socialist inclinations have risen in the societies everywhere is a proof that collective IQs have degraded over time. This is no natural selection anymore. No wonder we are spiraling off the track.
Alan Rice
Alan Rice May 18, 2021 1:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Building a better PAST, today !!
Mike Wellons
Mike Wellons May 18, 2021 1:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can't have badly infrastructure improvements without tax increase to pay for it. So question is, who should pay? The middle class which got a minor tax break in 2016, or the wealthy and corporations which got huge tax reductions? This is rocket science!
Mike Wellons
Mike Wellons May 18, 2021 1:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Isn't*
ben sc
ben sc May 18, 2021 1:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation and increased corp tax rates are de facto tax increases on EVERYONE. which disproportionately impacts low and middle income earners. Remember the Obama years when income disparity grew exponentially dispute tax increases designed to stop it? Put your orange man bad shirt away, join the adults for a change
Bev Mcguffee
Bev Mcguffee May 18, 2021 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Infrastructure is much needed, and will create jobs.  However, it is not wise to tax the hands whom feed the masses.  Instead, have greater usage taxes, such as tolls, lotteries, recreational cannabis, liquor- thereby spreading the tax burdens in smaller increments to all.
Catholic Man
CatholicMan May 18, 2021 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It’s been shown that jobs created that way do not help the economy.
ben sc
ben sc May 18, 2021 1:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
laughable
Notvery Goodathis
Peteymcletey May 18, 2021 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Terrible plan.We also need to stop incentivizing people to have kids. Separate of it being very unfair, it also is the biggest cause of CO2 emissions. If you cut the average consumption per person by 50%, but double the population - you've accomplished nothing.
Mike Wellons
Mike Wellons May 18, 2021 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Agreed
Josh Davis
Josh Davis May 18, 2021 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So we need a jobs plan when we had the lowest unemployment in history just a mere 2 years ago? Weird. Also any time you take profits by taxing you in fact decrease them not increase them. The historical norm is a laughable statement as well even when taxes were 90% the actual payments or tax receipts were identical to when they were 18%.
Vlad Lozovskiy
Vlad Lozovskiy May 18, 2021 9:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If you believe her and her statements, better go get your brains checked out!
Connecticut Yankee
A_Jaundiced_Eye May 18, 2021 9:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That's not the question. The question is "Does SHE believe her statements." Current odds:75/25 "No."
William Smith
William Smith May 18, 2021 9:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
She managed to tank the futures.
William Smith
William Smith May 18, 2021 9:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lies by the leftists.
danny Levine
danny Levine May 18, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lie better
Benjamin McIntire
Benjamin McIntire May 18, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lmao this is gonna trigger some ppl here who (clearly) know better than her (or any anyone else)
Felipe Daniel
Felipe Daniel May 18, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Obviously you do not know much about the economy
Kaveh Sun
Kaveh Sun May 18, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
She is partial rights, companies connect to gov will benefit bigly.
peter neal
peter neal May 18, 2021 9:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why would anyone so something so stupid. The only ones to believe that statement would be the ones that already stupid. You not going to convince others the statement is true. What a stupid thing to say.
Scott Bailey
Scott Bailey May 18, 2021 9:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FALSE!!!!
Felipe Daniel
Felipe Daniel May 18, 2021 9:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tax raise does not improve profitability or global competitiveness
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email