WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen tried to sell President Joe Biden\u2019s $2.2 trillion corporate tax hike and infrastructure plans to the U.S. Chamber of Commerce on Tuesday, saying that the proposals will improve the profitability and competitiveness of American corporations.<\/p>\n
Yellen told a Chamber online conference that the \u201cAmerican Jobs Plan\u201d infrastructure investments would have a direct payoff to the American people, create jobs and simply \u201creturn the corporate tax rate toward historical norms.\u201d<\/p>\n
\u201cWe are confident that the investments and tax proposals in the Jobs Plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness. We hope that business leaders will see it this way and support the Jobs Plan,\u201d she said.<\/p>\n
Yellen is taking her pitch for Biden\u2019s tax and spending plans directly to an organization that is deeply opposed to raising the corporate tax rate, which was cut to 21% from 35% by the Trump administration and Republicans in Congress in 2017. Biden is proposing to raise the rate to 28%, while negotiating a global minimum corporate tax with major economies.<\/p>\n
Chamber CEO Suzanne Clark said after Yellen\u2019s remarks that tax hikes would erect a barrier to economic recovery from the COVID-19 pandemic.<\/p>\n
\u201cThe data and the evidence are clear, the proposed tax increases would greatly disadvantage U.S. businesses and harm American workers,\u201d said Clark, who took over leadership of the influential business lobby group in March.<\/p>\n
\u201cThe administration is right to champion infrastructure, and we want to be there with them to do that, but there are other ways to finance it,\u201d she added.<\/p>\n
The Chamber has favored more traditional means of infrastructure financing, such as increased fuel taxes and other user fees.<\/p>\n
Biden\u2019s proposal goes well beyond traditional infrastructure such as roads and bridges and proposes to invest in broadband networks, research and development, modernized schools and expanded child care to bring more women into the workforce.<\/p>\n
Yellen said that the package will \u201cmake up for lost time\u201d in investing in renewable energy technologies and protecting against cyber threats.<\/p>\n
\u201cThe transition to a greener economy will provide a multi-decade boost to the economy, creating jobs along the way as the private sector participates in the development of new technologies, new investments, and the new products that will drive the global economic transformation.\u201d<\/p>\n
Yellen also said Biden\u2019s American Families Plan will enhance education from early childhood to community college to help build a competitive workforce and fight childhood poverty. The plan would be financed by increases in tax rates for the wealthiest Americans and higher capital gains taxes for those earning more than $1 million a year.<\/p>\n
She also said that in the areas of trade and investment, the Biden administration will fight for a level playing field and \u201cconfront adversaries who take advantage by ignoring or abusing rules and norms of behavior\u201d.<\/p>\n