Yellen and President Joe Biden last week met with top executives together with from JPMorgan Chase, Intel, Nasdaq, Raytheon, Citi and Deloitte to debate the “disastrous impact” of the nation not paying its payments if the debt ceiling is not raised.
Host George Stephanopoulos proposed invoking the 14th Amendment to justify continued borrowing. “The text is pretty clear,” he mentioned. “The validity of the public debt of the United States should not be questioned.”
Yellen, although, mentioned the U.S. ought to by no means be in that place. “It would be completely irresponsible and a self-inflicted wound that would affect businesses and households and the global economy and the status of the U.S. in the world,” she said. “We shouldn’t ever be in that position.”
In the president’s pending infrastructure spending proposals, Sen. Joe Manchin (D-W.Va.) has urged means testing some applications, however Yellen cautioned there could be a trade-off. Universal applications are usually in style, however there’s an argument for “the best revenue Americans maybe do not get the advantage of a program that’s most wanted by these with decrease revenue,” she mentioned.
Another historic settlement Yellen is “confident” will probably be within the president reconciliation spending bundle is a 15 p.c international minimal tax, one thing that 130 nations at the moment help.
“It’s … very important for American workers to stop what’s been a decadeslong race to the bottom on corporate taxation, where countries try to cut their taxes to attract our businesses, to make it harder to keep jobs in the United States,” Yellen mentioned.