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U.S. Treasury Secretary Janet Yellen has asked Congress to uphold the $ 4.1 billion investment plan with the higher White House tax, arguing that the country should have U.S. deficits in the long run.
On Sunday, Yellen argued that Joe Biden was trying to impose higher taxes on businesses and wealthier Americans by spending $ 2.3 billion on infrastructure over the next decade and funding $ 1.8 million in social programs after receiving criticism from Wall Street, American companies and Republicans. members of parliament.
But Yellen went one step further by saying that cost compensation was important Expenditure plans for road administration To prevent the fiscal situation in America from deteriorating. With Republicans pushing hard against tax hikes, and some Democrats questioning the details and details of tax hikes, some lawmakers may be tempted to make a commitment that includes very limited revenue hikes.
“I think we are in a good fiscal position. Interest rates are historically low. They have been doing this for a long time, and are likely to continue to do so in the future. But we need fiscal space to deal with emergencies, just like we have been in terms of the pandemic, ”Yellen told NBC on Sunday.
“We don’t want to use all that fiscal space and we need to have long-term deficits to keep our federal finances sustainable. So I think we should pay for those historic investments,” he added.
Yellen’s comments came as the Biden administration is preparing to begin negotiations Congress to see if an agreement can be reached on the broad economic agenda that comes above the $ 1.9 million stimulus plan approved in March.
Biden is expected to travel to Virginia and Louisiana this week to promote the case for U.S. economic plans, in which he paid close attention to a joint speech at Congress last week.
Regarding the infrastructure plan presented by the White House more than a month ago, Republicans have made an offer against spending $ 568 billion, and party lawmakers have suggested increasing user fees to pay for at least part of the plan. , although many Democrats are skeptical.
“There are ways to get there,” Ohio Republican Sen. Rob Portman told NBC. “It simply came to our notice then. I met with the White House at the end of last week. There is a way forward here if the White House is willing to work with us. “
White House chief of staff Ron Klain said he was confident the deal could be reached, and said in interviews that Biden’s “two red lines” were that taxes would not go up for anyone earning less than $ 400,000 a year and “inactivity.” it was not an option.
“We have time to talk to people on both sides, to find out where the common points are, to find interests that are in line with what people agree on. I’m optimistic that we can move forward in the coming weeks,” he told CBS.
Biden’s momentum is accelerating rapidly as the U.S. economy recedes from the winter, thanks to the rapid spread of vaccines and the impact of the stimulus bill. Some Republican economists and lawmakers have expressed concern that more of Biden’s fiscal plans risk warming the U.S. economy, but Yellen has sidelined them.
He said the new spending will happen after the stimulus funds have been spent, and that the “moderate boost in demand” will be distributed between eight and 10 years from now.
Yellen said the Federal Reserve has the capacity to deal with any rise in inflation. “We will monitor it carefully,” he said. “We propose to pay the expense. And I don’t think inflation is going to be an issue, but if it becomes an issue, we have the tools to deal with it. These are the historic investments we need to make in order for our economy to be productive and just. “
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