Yellen Testifies on Biden Administration’s FY’24 Budget Request
On Friday, Treasury Secretary Janet Yellen testified before the House Ways and Means Committee on the Biden Administration’s FY’24 Budget Request.[0] The request includes a proposed tax increase on the wealthy to fund $6.9 trillion in spending for fiscal 2024, resulting in total deficits of $17 trillion over the coming decade.[1] Yellen warned of “economic and financial catastrophe” if Congress fails to raise or suspend the federal borrowing limit.[2]
Yellen faced numerous questions from members of the Republican-led committee, including Chairman Jason Smith (R-MO), who asked Yellen to commit to providing the IRS’s plan for the $80 billion in new funding provided by Democrats in the so-called “Inflation Reduction” Act. Yellen stated that the plan would be released within a few weeks. Smith also asked Yellen when lawmakers can expect to see a public plan from the IRS for how it will use the $80 billion budget infusion from Democrats’ August budget reconciliation law, objecting to the administration’s budget request to extend that mandatory funding for another two years. Yellen stated that the plan will be released within the next few weeks.
When Rep. Jodey Arrington (R-TX) asked Yellen whether she believes spending contributes to inflation, she responded that “most of the inflation we’ve experienced reflects disruptions from the pandemic, the supply side of the economy.”[3] Yellen also highlighted the importance of fiscal discipline and the need for corporations and the wealthiest to pay their fair share.
Yellen will have additional hearings in the offing, including one before the Senate Finance Committee on March 16. Her comments come a day after Biden unveiled his $6.9 trillion budget proposal, a defiant opening move in high-stakes negotiations with congressional Republicans over the debt ceiling and government funding.[4]
0. “Yellen doesn't deny that 90% of new IRS audits would affect those making under $400K” Fox Business, 10 Mar. 2023, https://www.foxbusiness.com/politics/yellen-doesnt-deny-90-new-irs-audits-affect-those-making-under-400k
1. “Yellen defends Biden budget in first hearing with GOP-controlled House” Washington Examiner, 10 Mar. 2023, https://www.washingtonexaminer.com/policy/economy/yellen-defends-biden-budget-congress
2. “Yellen Addresses Concerns Over Debt Ceiling, SVB Financial Situation” The Cairns Post, 10 Mar. 2023, https://www.cairnspost.com.au/news/world/yellen-addresses-concerns-over-debt-ceiling-svb-financial-situation/video/7422e1f68ab4c606593b7053b9e7da5f
3. “Yellen spars with GOP over Biden's budget” msnNOW, 10 Mar. 2023, https://www.msn.com/en-us/news/politics/yellen-spars-with-gop-over-bidens-budget/ar-AA18tlm7
4. “Yellen warns of ‘economic and financial collapse’ if America defaults on its debt” Fortune, 10 Mar. 2023, https://fortune.com/2023/03/10/janet-yellen-debt-ceiling-warns-economic-financial-collapse-default/
