U.S. Treasury’s Yellen says investment bills will boost U.S. productivity, labor force

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WASHINGTON (Businesshala) – US Treasury Secretary Janet Yellen said on Tuesday that a bipartisan infrastructure package approved by Congress and President Joe Biden’s proposed social and climate spending plan would increase US productivity and the size of its labor force.

FILE PHOTO: US Treasury Secretary Janet Yellen attends the United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Britain November 3, 2021. Businesshala / Phil Noble

Yellen said in remarks prepared for a University of Nevada-Las Vegas economic conference that together, the two bills would increase long-term U.S. economic output without increasing the national debt, and that his revenue-raising measures would reduce the deficit over time.

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“I believe that the passage of these pieces of legislation will lead to positive changes in not only higher rates of productivity but a wide range of metrics. They will increase the size of our labor force and expand the productive capacity of our economy,” said Yellen he said.

The “Build Back Better” bill’s investment in child care would allow many American moms to return to the work force, he said, citing studies showing that some 2 million parents of young children had to leave their jobs from 2018 to 2019 , quit their job or change their jobs a lot to deal with child care issues.

Yellen said the universal pre-school proposed in the bill would help parents stay in the workforce and pay dividends in future decades by improving graduation rates and the income-earning prospects of future workers.

He said the tax provisions in the proposal would make the US tax code “significantly more progressive by imposing higher taxes on the wealthy and improving compliance by wealthy taxpayers.”

“Our compliance effort to make sure the wealthy get what they pay for will raise an estimated $400 billion – and that’s probably a conservative projection,” Yellen told Businesshala in comments by his deputy Wally Ademo. Echoing.

“Another $400 billion will come from closing the loopholes used by wealthy taxpayers; And another $200 billion through an additional tax on the nation’s highest earners, making people more than $10 million a year,” Yellen said.

In gray television comments on Monday, US Representative Kevin Brady, the top Republican on the tax-writing House Ways and Means Committee, disputed Democrats’ claims on Monday that higher taxes on wealthy business owners from the spending bill could lead to higher taxes on the American workforce. will expand. and an expanded Child Tax Credit.

“They’re going to make the labor shortage worse because they’re removing the need to work from the child tax credit, basically chasing half a million workers out of the workforce,” he said.

Reporting by David Lauder; Editing by Dan Grebler

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