06/09/2022

Yellen Testifies in Support of Biden’s FY23 Budget Plan

She noted the nation's unacceptable levels of inflation

Testifying before the Senate Finance Committee and House Ways and Means Committee this week, Treasury Secretary Janet Yellen acknowledged "unacceptable levels of inflation" impacting American families and businesses while touting President Joe Biden's Fiscal 2023 budget as necessary investments in the nation's future.

The president's $5.8 trillion budget proposal, which serves as an opening salvo in negotiations with Congress, includes a more modest boost for defense than many Republicans want and would dramatically raise taxes on corporations and the uber-wealthy. The plan would raise the corporate tax rate to 28 percent from 21 percent and introduce a new "billionaire minimum tax," a 20 percent minimum tax on the top .01 percent of earners and households with assets worth more than $100 million. The White House estimates the tax changes would raise $360 billion over the next decade.

To address inflation moving forward, in addition to monetary policy actions by the Federal Reserve, Biden and congressional Democrats have called for clean energy initiatives and prescription drug reforms to lower the costs paid by American consumers. Members of the Republican Party have expressed discontent over these initiatives. In her testimony, Yellen also referenced the bipartisan infrastructure bill as investments that will build a more dynamic, structurally sound economy down the road.

"There's no cure-all to inflation, but the focus in Congress must be on finding real solutions to drive costs down, protecting everybody's ability to get ahead and solidifying our economy in the long run," Senate Finance Committee Chairman Ron Wyden (D-OR) said this week.

Congressional Republicans are hammering the administration on its plans to raise taxes.

"As prospects of recession and stagflation rise, this is no time to consider raising (millionaires) taxes or resurrecting reckless spending proposals from the House-passed Build Back Better bill," said Senate Finance Ranking Member Mike Crapo (R-ID).

This article was provided to OSAP by ASAE's Power of Associations and Inroads.