Treasury Secretary Janet Yellen on Thursday touted President Biden’s budget proposal, which includes higher taxes on wealthy Americans and an expansion of the child tax credit.
During a Senate Finance Committee hearing on the president’s budget proposal, Yellen also said the Biden administration “continues to oppose misguided proposals that would widen the budget deficit by providing deep tax cuts to the wealthy and big corporations.” and laid the groundwork for a partisan tax. A policy battle that will play a big role in the next election in 2024.
In his $7.3 trillion fiscal year 2025 budget request released earlier this month, Biden increased the minimum corporate tax rate established by former President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) from 21% to 28%. It was proposed to increase it to %.
Key provisions of the bill are set to expire in 2025, and Republicans are pushing for broader cuts.
Republicans warned at the hearing that raising the corporate minimum tax rate could drive capital overseas, increase inflation and lower wages.
Biden’s budget proposal includes a “billionaire tax” of at least 25% of the total income of Americans with assets over $100 million, which Yellen described as “one-hundredth of the wealthiest taxpayer.” ” includes a minimum tax.
When asked by Republicans how the president’s plan would affect households earning less than $400,000 a year, Yellen reiterated the president’s claims. support For extending income tax cuts for those Americans.
“The president has made it clear that he opposes raising taxes on working-class people and households making less than $400,000,” Yellen said.
Sen. Bill Cassidy (R-Louisiana) criticized the president’s proposal as a “set of talking points” and questioned Biden’s “willingness to work with a persistently demagogue Republican Party.”[s]”
Mr. Biden’s proposal, which was effectively dead on arrival in Congress, draws a sharp contrast between Mr. Biden and Mr. Trump, who secured the Republican nomination last week.
Sen. Ron Wyden (D-Ore.), the committee chairman, characterized Trump’s presidential campaign as “further tax cuts for multinational corporations and big handouts to the very top.” Ta.
Sen. Mike Crapo (R-Idaho), ranking member of the Senate Finance Committee, also said that Biden’s platform is “in stark contrast to the goals of across-the-board tax cuts and competitiveness achieved by Republicans.” “It’s one of those tax increases.” And in order to support government subsidies for the few, uncompetitive rates are set for the majority. ”
Biden has struggled to withstand criticism for his economic response, with disappointing poll results.
Recent CBS News/YouGov poll Of 2,159 Americans, 61% disapproved of Biden’s economic response. That’s because the U.S. economy defied predictions of heading into recession last year, with pandemic-induced inflation significantly cooling, while unemployment remained low and economic growth remained strong despite high borrowing costs. This is despite the fact that it is changing.
An average of polls analyzed by The Hill and Decision Desk headquarters shows Biden’s approval rating at about 43%, with Trump currently leading the president by 1%.
While Yellen praised the Biden administration’s “historic economic recovery,” she said the administration recognizes that high prices remain a burden for many families.
“Overall, this budget allows us to continue to grow our economy and support workers and families while maintaining our commitment to fiscal responsibility and deficit reduction,” Yellen said.
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