03/21/2024

Yellen Testifies on Biden’s Fiscal Year 2025 Budget Plan

The plan also would reduce the deficit by $3 trillion over a decade

Treasury Secretary Janet Yellen testified before the Senate Finance Committee this morning to highlight the key tax proposals in President Joe Biden’s Fiscal Year 2025 budget plan – including an expanded child tax credit and new taxes on the wealthy.

Yellen said the Biden budget plan proposes investments to lower costs for workers and families and strengthen the economy, including expanding the Earned Income Tax Credit, Child Tax Credit and Low-income Housing Tax Credit. The plan also would reduce the deficit by $3 trillion over a decade through new savings and tax proposals, including a billionaire minimum tax and closing estate and gift tax loopholes that allow wealthy Americans to pay less than they would otherwise owe, Yellen said.

“We will also continue to oppose misguided proposals that will grow the deficit by offering large tax breaks to the wealthy and big corporations,” Yellen said. “As a whole, the budget will enable us to continue to grow our economy and support workers and families while upholding our commitment to fiscal responsibility and reducing the deficit.”

Sen. Mike Crapo (R-ID), ranking member of Senate Finance, challenged Yellen on President Biden’s proposed new taxes on corporations and the wealthy, saying that tax increases on American businesses “will be passed on to working families in the form of higher prices and lower wages.”

This article was provided to OSAP by ASAE's Power of Associations and Inroads.