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Yellen says tax hike would pay for part of Biden infrastructure plan

Published 02/18/2021, 05:18 PM
Updated 02/18/2021, 06:50 PM
© Reuters. FILE PHOTO: U.S. President-elect Joe Biden announces members of his economic policy team in Wilmington, Delaware

© Reuters. FILE PHOTO: U.S. President-elect Joe Biden announces members of his economic policy team in Wilmington, Delaware

By Andrea Shalal and David Lawder

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen on Thursday said that tax hikes would be needed to pay for at least part of a big infrastructure, climate and education investment package that President Joe Biden plans to introduce later this year.

Yellen, in an interview with CNBC, said details were still being worked out on the infrastructure and clean energy package, which would come on top of a $1.9 trillion coronavirus relief plan that is now working its way through Congress.

She said it would include clean energy investments to fight climate change and investments in education and training to build the skill levels of American workers and boost U.S. competitiveness.

"Certainly part of the package, the parts that are permanent, will be paid for in order to not raise long-term deficits, but we're still working on the details of the package."

The infrastructure, climate and education plan will probably be proposed later this year and would involve spending over a number of years, "and probably tax increases to pay for at least part of it would probably phase in slowly over time."

Biden's $1.9 trillion COVID-19 stimulus package aims to ensure that growth is strong enough to get back to full employment faster than recent baseline estimates from the Congressional Budget Office, which projected earlier this month that based on current laws, it would take until 2024 to reach pre-pandemic employment levels.

With the Biden stimulus plan and good progress on vaccines to defeat the pandemic, "I think we could be back to full employment next year," she said.

Yellen downplayed the potential risk of inflation from trillions of dollars in new stimulus and infrastructure spending, saying that inflation has been low for a decade and the Federal Reserve has tools to deal with it.

© Reuters. FILE PHOTO: U.S. President-elect Joe Biden announces members of his economic policy team in Wilmington, Delaware

"The greater risk is of scarring and people having this pandemic take a permanent lifelong toll on their lives and livelihoods," if no further aid is provided, she said.

Latest comments

time for another revolution.
keep taxing!
tax cripto
tax yourself
Taxing the wealthy tax dodgers to the benefit of us all, see nothing wrong with that
Does any risk assessment every take place in the federal government?
The risk level would always be low anyway lol
Why does everyone in Bidens cabinet look like they are one foot in the grave? These people do not represent America.
It is called gerontocracy.  And she got paid $9 million by the big banks for her "speeches."  What a profligate nation!
The previous and current administration didn't represent America not even close.
Tax is crucial. Tax the rich?
to bad the rich are smart enough to keep there wealth outside of the jurisdiction of the us taxing authorities
It's not so much the rich being smart , as most people being (not smart).
Evil lady
Paranoid person.
Evil Chad
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