Yellen Testifies Before Tax Committees
June 13, 2022
Last week, Treasury Secretary Janet Yellen testified before both the Senate and House tax writing committees. While the topic of the hearings was on the President’s 2023 budget, inflation and energy costs were the dominant themes, especially among Republicans.
Yellen’s written testimony and opening statement highlighted President Biden’s proposed investments in education, medical care, affordable housing, and his various tax proposals. She also highlighted the reduction in the federal budget deficit.
Yellen also spoke about her efforts to establish a global minimum corporate tax of 15%, and acknowledged that the international agreement would require Congressional approval. But she did not specify whether approval would be a treaty (which required a two-thirds vote for ratification by the Senate) or normal legislation. Either way, bringing a closely divided Congress into the mix will likely doom or stall the effort.
Questioning Highlights
On the topic of inflation, Yellen emphasized the Federal Reserve’s primary role in addressing the issue, but said bringing down inflation should be “our number one priority”. Yellen pointed to deficit reduction as a compliment to anti-inflation efforts and addressing high housing costs and prescription drug costs will help, as well.
Sen. Steve Daines (R-MT) laid blame for inflation on the Biden administration’s spending policy, including the $1.9 trillion American Rescue Plan, which Yellen pushed back on: