Treasury Secretary Janet Yellen said the government is open to new corporate taxes, but rejected the idea of a “capital tax” because President Joe Biden is against it.
Yellen Biden said is in favor of raising corporate taxes and could raise rates on capital gains, noting that the idea was “worth considering.”
The government wants to increase corporate tax to 28 percent, Yellen said.
But she ruled out a wealth tax – an idea favored by progressives.
“ There has been talk of a wealth tax, but it is not something President Biden prefers, ” Yellen said at a virtual Dealbook / DC Policy Project conference on Monday, hosted by the New York Times
“It’s something that has very difficult implementation issues,” she noted.
Treasury Secretary Janet Yellen said in an interview with the New York Times that the government is open to new corporate taxes to help pay for COVID lighting.
In the in-depth interview, she discussed COVID assistance, the climate crisis, bitcoin and the $ 20 bill.
Yellen is pushing for revenue increases to help pay Biden’s $ 1.9 trillion COVID contingency plan to support the long-term economic recovery from the coronavirus pandemic.
The unemployment rate in the US is 6.3%, compared to 3.5% before the pandemic, which was widely regarded as full employment.
But Yellen said that because 4 million people have dropped out of the workforce due to childcare responsibilities as a result of the pandemic, the effective unemployment rate is close to 10%.
But really, when you add in addition to the nearly 10 million people who are registered as unemployed, when you add the four million people who have dropped out of the labor force – for health reasons, because they are responsible for childcare – and two million people who are less worked hours or paid less, we’re looking at an unemployment rate of nearly 10 percent, ”she noted.
She said she would judge the plan’s success by how quickly it returns the economy to pre-pandemic unemployment levels.
‘Success for me would be if we could go back to the pre-pandemic level of unemployment and the relocation of those who lost service sector jobs, in particular – I would also consider them a measure of success,’ said they .
“An important task for a Minister of Finance is of course to ensure that our country follows a healthy fiscal course,” she noted. ‘If you don’t spend what it takes to get the economy back on track quickly, it also has tax costs.’
Treasury Secretary Janet Yellen said President Joe Biden is not in favor of a ‘rich levy’ – an idea of progressives
Yellen said she would measure her success as Biden’s Treasury Chief if unemployment was reduced to pre-pandemic levels
And she downplayed concerns about the amount of debt such a plan could generate, arguing that as a result of low interest rates, US interest costs are at 2007 levels as a share of GDP.
She said the most important measure for her is the cost of debt.
Just look at the interest payments on the debt as a percentage of GDP. Currently that is less than 2 percent, ”she said. ‘And it is not higher than in 2007. So I think we have more fiscal scope than before because of the interest rate climate. And I think we should now use it to handle an emergency. ‘
She also expressed interest in the Federal Reserve’s development of a so-called digital dollar.
“It makes sense for central banks to look at it,” she said. ‘We do have a problem with financial inclusion. Too many Americans really don’t have access to simple payment systems and bank accounts, and I think this is something a digital dollar – a central bank digital currency – could help with. I think it can lead to faster, safer and cheaper payments. ‘
And finally, she explained why it took so long to add the portrait of Harriet Tubman to the $ 20 bill.
“It’s a complicated production process, so it takes longer to issue a new set of bills than you might think,” she said. “But I promise I will do everything I can to speed this up, and I would love to see Harriet Tubman honored with our coin.”