Treasury Secretary Janet Yellen told CNBC’s “Closing Clock” on Thursday that President Joe Biden would “likely gradually introduce” his proposed tax hikes.
Yellen said the tax increases are likely to come as part of a larger package of legislation sometime in 2021, which, according to the financial network, will “entail spending and investment over several years” in areas like education and infrastructure.
“And probably tax increases to pay for at least some of it, which will probably be introduced slowly over time,” she added.
Biden campaigned to raise the corporate tax rate to 28%, which would still keep it below the 35% rate it was before the 2017 Republican tax bill lowered the corporate tax rate to 21%.
Yellen noted in January that Biden “has said that eventually, as part of a larger package that would include significant spending and investment proposals – not with the pandemic really straining the economy – he would want parts of the 2017 tax cuts which benefited the highest-income Americans and large corporations.
The secretary also said on Thursday that the coronavirus relief package proposed by the Biden government will help bring back jobs lost during the pandemic.
“We think it is very important to have a large package [that] tackles the pain this has caused – 15 million Americans are behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses going out of business, ”said Yellen.
“I think the price of doing too little is much higher than the price of something great. We think the longer term benefits far outweigh the costs, ”she added.
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