2021-05-18 22:13:37
David Lowder
WASHINGTON (Reuters) - USA. Treasury Secretary Janet Yellen on Tuesday tried to sell President Joe Biden's $ 2.2 trillion corporate tax and infrastructure plans to the US Chamber of Commerce, saying the proposals would improve the profitability and competitiveness of American corporations.
Yellen said at the Chamber's online conference that investments in the infrastructure of the American Employment Plan will bring direct benefits to the American people, create jobs and simply "bring the corporate tax rate back to historical norms."
“We are confident that the investment and tax proposals in the Employment Plan, taken as a single package, will increase the net profitability of our corporations and improve their global competitiveness. We hope business leaders see it this way and support the Jobs Plan, "she said.
Yellen is referring to Biden's tax and spending plans directly to an organization that is vehemently opposed to raising the corporate tax rate, which was cut to 21% from 35% by the Trump administration and Republicans in Congress in 2017. Biden proposes to raise the rate to 28%, negotiating a global minimum corporate tax with the largest economies.
THE CAMERA IS NOT CONVINCING
House CEO Suzanne Clarke said after Yellen's remarks that the tax hike would create a barrier to economic recovery following the COVID-19 pandemic.
"The data and the evidence are clear: The proposed tax hike will disadvantage American businesses and harm American workers," said Clarke, who in March led an influential business lobby group.
“The administration is right to protect the infrastructure, and we want to be with them to do this, but there are other ways to fund this,” she added.
The Audit Office favors more traditional infrastructure financing means, such as higher fuel taxes and other user charges.
Biden's proposal goes well beyond traditional infrastructure such as roads and bridges to invest in broadband, research and development, modernize schools and expand childcare services to attract more women to the workforce.
Yellen said the package will “catch up” on investment in renewable energy technologies and cyber defense.
The transition to a green economy will ensure economic growth for several decades, creating jobs as the private sector participates in the development of new technologies, new investments and new products that will drive global economic transformation. "
Yellen also said Biden's American Family Plan will improve education from early childhood to community colleges to help create a competitive workforce and fight child poverty. The plan will be funded by higher tax rates for the wealthiest Americans and higher capital gains taxes for those who make more than $ 1 million a year.
She also said that on trade and investment, the Biden administration will fight for a level playing field and "confront adversaries who benefit by ignoring or violating the rules and norms of behavior."
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