US President Joe Biden is ready to raise corporate tax to 28%

US President Joe Biden is ready to raise corporate tax to 28%

US Treasury Secretary Janet Yellen signaled that US President Joe Biden was ready to raise corporate taxes as he was pushing for huge stimulus proposals.

In the photo (documentary): Ms. Janet Yellen speaking in Wilmington, Delaware, USA, on December 1, 2020. Photo: AFP / VNA

While Fed President Jerome Powell has once again pushed back the possibility of a sharp rise in inflation as the economy recovers from the COVID-19 pandemic.

Yellen’s comments come as Washington administration policymakers are preparing for President Biden’s next move, after Congress earlier this month approved a Rescue Plan. America is worth $ 1,900 billion, a huge financial support for the business world and workers of the world’s largest economy.

Mr. Biden has pledged to propose a large infrastructure investment package to help the United States create jobs and fight climate change soon, but he is under pressure to fund the two proposed bills. arguably will be very expensive.

US media recently reported that President Biden is considering spending $ 3,000 billion on infrastructure in the US, divided into two bills.

In testimony before the House Financial Services Commission, Yellen said the White House would propose a 28% increase in corporate taxes, and seek to persuade American businesses to bring most of their operations back to the United States.

The US economy has shown many signs of recovery, as the unemployment rate is on the decline and GDP growth is expected to increase again this year.

This recovery, along with the aforementioned US Rescue Plan and another $ 900 billion bailout package approved in December last year, has made stock markets and many economists concerned. Such a flourishing economy will lift prices up, prompting the Fed to raise interest rates earlier than expected.

In the text of his hearing, Mr. Powell acknowledged that prices could go up after virtually no volatility during a downturn, but he said the increase would not have a major impact and was just that. temporary developments.

In 2020, the Fed announced a new inflation target policy, under which the bank will keep interest rates low until inflation reaches 2% and stay at this level, in an effort to support the market. labor.