The Biden administration does not rule out the establishment of a wealth tax, which is not, however, its preferred solution, to involve the wealthiest businesses and households in financing the expenditure generated by the crisis, a indicated Sunday the Secretary of the Treasury.
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“This is something that we haven’t decided yet and that we can look into,” Janet Yellen, interviewed on ABC, noted, noting that “President Biden, during the campaign, proposed (.. .) alternatives which have a similar impact ”.
Joe Biden had proposed “that businesses and wealthy individuals pay more to meet the needs of the economy, the necessary spending, and in the longer term, I think that we will present proposals to contain the deficits”, detailed the secretary to the Treasury, equivalent to the Minister of the Economy and Finance.
The trillions of dollars spent over the past year to help businesses and households, through successive stimulus packages, cope with the crisis caused by COVID-19 continue to widen the deficit.
Republicans, in particular, have expressed concern about the debt implications of the $ 1.9 trillion emergency plan that was passed Wednesday in Congress and signed Thursday by Joe Biden. And a new plan, aimed at investing in infrastructure and green energy to create jobs, has yet to be presented.
But exceptionally low interest rates dramatically lower the cost of debt. Thus, “although the debt has increased considerably, interest has remained relatively low relative to the size of the economy,” said Ms. Yellen.
However, “we have to make sure that the economy, the budget, is on a sustainable path. (…) In the longer term, we need to bring the deficits under control, ”she acknowledged.
The Treasury Secretary has once again brushed aside the fears of a return of inflation, which have agitated the markets because of the money injected into the economy, just as the vaccination campaign is being carried out with full force in the States. -United.
The economic boom expected from the spring should push some prices up, but the risks of inflation are, according to her, much lower than that of seeing a lasting scar on the labor market with a less generous stimulus package.
“I think there is a small risk. And I think it’s manageable, ”she assured, anticipating“ a temporary movement ”.