“No family earning less than $ 400,000 will pay a penny more in taxes,” added the Secretary of the Treasury. “We have been diligent in respecting this commitment.”
His remarks were echoed by White House chief of staff Ron Klain. “More Americans, many more Americans will see their taxes go down if the president’s plan is passed than they will see them go up,” he said on CBS’s “Face the Nation”.
Republican lawmakers on Sunday preached otherwise, saying tax increases would make the U.S. economy less competitive, not more like the Biden administration does.
“It’s exactly the opposite. I respect her, but [Yellen’s] simply wrong on this point, “said Sen. Rob Portman (R-Ohio) on” Meet the Press “. “In fact, by raising corporate taxes the way she wants, you’re going to hurt workers. The non-partisan Congressional Budget Office says 70% of tax cuts have gone into the pockets of workers with higher wages and benefits.
Even some Democratic senators have suggested that not all tax increases may be necessary. When asked if Biden would sign a bill without those payments that the administration has demanded, Yellen said she would not talk about how the president is going to negotiate and reiterated Biden’s position that these spending increases should be paid. She added that there will be a “big return” on the investment.
Biden “has made it clear that he thinks the permanent increases in spending should be paid for, and I agree. I think we’re in a good fiscal position,” Yellen said. “But we need fiscal space to be able to deal with emergencies, such as the one in which we faced the pandemic.