Yellen says Biden’s tax increases will fund traditional and ‘modern’ infrastructure

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The fiscal plans proposed by the Biden administration will fund both traditional and more “modern” infrastructure, Treasury Secretary Janet Yellen said Wednesday as the president prepares to push his case again for his second major economic initiative. Hours before President Joe Biden spoke about what the White House calls historic investments in his American Jobs Plan, Yellen spoke about the administration’s tax proposals. They include raising corporate income tax to 28% from 21%, encouraging global adoption of minimum taxes and incentives for clean energy production.

“The revenue generated by the tax plan will be converted into funds for both the traditional and the more modern infrastructure needed to run a digital economy, such as high-speed broadband networks,” Yellen told reporters. The tax plan is designed to raise $ 2.5 trillion in revenue over 15 years. Biden launched his $ 2.3 trillion infrastructure plan last week, which includes funding for transportation, water infrastructure and broadband projects. Speaking in Pittsburgh, Biden touched on the tax proposals and said it was open to others as long as they don’t raise taxes on people making less than $ 400,000. Read: Biden Launches $ 2.3 Trillion Infrastructure Plan: ‘It‘s Bold, Yes, And We Can Do It’ The Treasury Department released a 17-page report on the tax proposals on Wednesday. Biden’s infrastructure plan has faced opposition from Republicans, who have criticized both elements of the spending proposals, sparking a debate over the meaning of “infrastructure” as well as tax increases. What’s more, a key Democrat, Sen. Joe Manchin of West Virginia, has said he opposes an increase in the corporate tax rate to 28%. Meanwhile, Yellen argues that a global minimum corporate tax rate will end what she calls a “race to the bottom” that makes it difficult for the United States to meet its income needs. Now watch: Yellen pushes for a global minimum corporate tax