Yellen's statement on tax hikes for high-income earners

US Treasury Secretary Janet Yellen stated that tax rates for high-income earners and corporations should be “returned to historical norms” and that tax reforms would provide the government with additional fiscal space for critical investments. Yellen made assessments on the economic agenda during her visit to Detroit. Stating that US President Joe Biden’s economic plan is working, Yellen said that the US is experiencing one of the fastest economic recoveries in its modern history. However, drawing attention to the fact that Americans are concerned about high prices shrinking their daily budgets and long-term savings, Yellen conveyed that the causes of inflation are largely global. Yellen reiterated that the administration’s most important economic priority is the fight against inflation. Emphasizing that the most urgent challenge is to return to a stable price environment without compromising the economic gains of the last 2 years, Yellen said, “We must keep our public finances on solid foundations in order to ensure our long-term economic stability.” “This includes closing loopholes and restoring tax rates for high earners and corporations to historical norms,” Yellen said. “These reforms will provide our government with additional fiscal space to make critical investments, ensuring everyone pays their fair share.”