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Yellen insists US will see ‘big returns’ by adopting Biden’s spending proposals

WASHINGTON – Treasury Secretary Janet Yellen on Sunday promoted the Biden administration’s proposals for billions of dollars in new spending, saying “there will be a big comeback” for the nation if Congress approves President Joe’s plans Biden on infrastructure, education and employment.

“The plans are extremely important and necessary to invest in our economy so that we can be competitive and make families and children successful, invest in infrastructure, in R&D and in the things that support middle class prosperity – education, child care and health care, ”Yellen said in an exclusive interview on“ Meet the Press ”.

“There will be a big comeback. I expect productivity to increase. Investments in research and development will pay dividends and allow families to participate with paid time off and childcare support in the labor market.

Part of the new spending proposed by the White House is the $ 1.8 trillion U.S. plan for families, which includes funding for universal preschool education and two free years of community college – in addition to a plan for families. $ 2 trillion infrastructure.

And to pay for it all, the White House is calling for significant new taxes on businesses and the wealthy, reversing some of the cuts these two groups suffered in the last administration.

Yellen has repeatedly pointed out that the administration believes the new spending should be paid for, and in doing so, is proposing tax increases on those earning at least $ 400,000 and on businesses, increases that negate some of the breaks. under the Trump administration.

Yellen said Biden had “made it clear that he believes the permanent spending increases should be paid, and I agree,” but she hasn’t closed the door on approving a deal that doesn’t ‘did not include all these provisions aimed at raising the necessary funds. to pay it.

Republicans have so far hesitated over the administration’s plan to raise taxes, arguing the efforts would be counterproductive. This is a message that Sen. Rob Portman, R-Ohio, pointed out in a separate interview on “Meet the Press,” where he called the White House proposal too broad, even as he expressed optimism. as to the search for a bipartisan agreement.

“We can come up with a good bipartisan bill that will survive over time because it enjoys Republican and Democratic support,” he said.

Portman then criticized the idea of ​​raising taxes, saying corporate tax hikes would end up “hurting workers.” Instead, he called for fundraising through things like “user fees” as well as public / private partnerships.

Yellen insists US will see ‘big returns’ by adopting Biden’s spending proposals

As Biden searches for a way forward for his legislation, he faces significant pressure from progressives within his own party who want a solid plan.

“We are starting to make strides in dealing with issues that have been overlooked for decades,” said Senator Bernie Sanders, I-Vt., On “Meet the Press”.

“The very rich and the big business should start paying their fair share of taxes to help rebuild America.”

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