Janet Yellen is the first US Secretary of the Treasury. Your 77 predecessors in the office were all men, not counting men who temporarily held office. On Monday evening, the US Senate unequivocally confirmed Yellen’s position, with 84 to 15 votes. The former central bank chief has wide support in both US parties. Topic number 1 is the economic recovery from the effects of the coronovirus epidemic.
US President Joe Biden has unveiled a $ 1.9 trillion package to stimulate the economy. Yellen’s task now is to get it through the US Parliament and get more of his boss’s views. The 74-year-old economist strives for fairness for a less well-off and more environmentally friendly orientation of the American economy. The new minister is also planning a tax incentive for “green” energy. Yellen said that at the US Senate hearing.
In the short term, it supports additional government debt. These are no contradictions to a long-term responsible budget policy. An economic lift will make service loans easier.
Regulation for cryptocurrency
The woman expressed skepticism about Bitcoin & Co. “Crypto currencies are of particular concern. I believe that many are primarily used for illegal financing, at least when you look at the transaction,” Yellen said at the oral hearing. “And I think we need to investigate the ways in which we can reduce usage (cryptocurrency) and ensure that money laundering doesn’t happen through these channels.”
Yellen then stated in a written questionnaire: “I think it is important to consider the benefits of cryptocurrencies and other digital assets, including their ability to increase the efficiency of the monetary system. At the same time, we know they used In support of harmful activities that threaten finance terrorism, money laundering as well as the integrity of America’s national security and financial system, “he said.” I believe we need to look carefully How we encourage and encourage their use. For legitimate activities for harmful and illegal activities. ”He strives for effective regulation for crypto money and other IT innovations in the financial sector.
More pressure on china
Internationally, Yellen has to repair ties with former US partners, which were badly damaged under Donald Trump. In the economic war against China, the United States is particularly dependent on the support of the European Union, neighboring countries Canada and Mexico, and other allies.
Yellen accused China of unfairly leveraging technology. The US government would mean this along the “entire border”. The figures also show that China is not meeting the commitments made in the trade agreement with Donald Trump.
Tax increases
Yellen wants to increase the corporate tax rate, which was reduced from 35 percent to 21 percent under Donald Trump from 28 percent. There is also a tax hike for the rich. And she wants to work internationally, especially within the framework of the OECD and the G20, for fair international taxation: profits should no longer be artificially transferred to the tax net.
The aim is to counteract the erosion of the tax base as well as solve the problem of customs-equivalent “digital taxes”. It is “necessary to update global tax regulations to end the undercutting race and prevent global profit shifts while at the same time ensuring the competitiveness of American companies.” Yellen is thinking about the worldwide minimum tax rate.
Yellen and other works face a particular obstacle: not only is the country deeply divided politically, the minister also lacks a well-trained team of experienced officers. Under Trump’s Treasury Secretary Steven Menuchin, several Treasury Department employees have resigned and several key positions remain vacant. Much experience and institutional knowledge have been lost which can hardly be replaced by new hires that are now required.
(DS)
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