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- Republicans launched attacks on Biden’s stimulus package during Yellen’s confirmation hearing on Tuesday.
- Senator Chuck Grassley called it “a list of liberal structural economic reforms.”
- The hearing likely portends fierce opposition many parts of Biden’s economic agenda will encounter on Capitol Hill.
- Visit the Business Insider homepage for more stories.
Senate Republicans stepped up their criticism of President-elect Joe Biden’s economic bailout on Tuesday, saying he will likely meet strong resistance among GOP lawmakers, who fear supporting more federal spending.
During Janet Yellen’s confirmation hearing – Biden’s choice for Treasury secretary – Republicans tried to put her on the defensive over Biden’s $ 1.9 trillion economic aid plan.
Senator Chuck Grassley of Iowa, the outgoing chairman of the Senate finance committee, attacked the plan as a “whitening list of liberal structural economic reforms” in his opening remarks.
Then the Republicans started to launch waves against him.
Sen. John Thune of South Dakota, the second Republican in the Senate, expressed concern about “the massive amount of debt we are accumulating” and urged lawmakers not to downplay it in the months to come. This swelled throughout President Donald Trump’s tenure as Republicans decreed a significant tax cut for businesses in 2017.
Yellen also took issue with South Carolina Sen. Tim Scott’s arguments that a minimum wage of $ 15 – a key provision in the plan – would lead to massive job losses. She referred to a large body of research which indicates that in neighboring states where one increases hourly wages and the other does not, job losses are “very minimal” in the state which increased workers’ wages. .
Sen. Pat Toomey of Pennsylvania, warned of “another spending explosion” as a result of Biden’s economic management. He later told Yellen: “I look forward to working with you but I have to admit that the contours of the stimulus bill as proposed by the Biden administration are going to make this difficult.”
The hearing likely portends fierce opposition many parts of Biden’s economic agenda will encounter on Capitol Hill. As Secretary of the Treasury, Yellen will play a crucial role in driving the administration’s plans through a divided Congress. Democrats will have very slim majorities in both the House and Senate.
Yellen has defended the massive amount of spending Biden is seeking. She argued that the economic recovery was in jeopardy unless Congress acted quickly to approve more federal aid to lessen the devastation caused by the pandemic, especially among women and minority communities.
She also sought to allay the alarm of Republicans at the prospect of tax hikes during an economic downturn, given that it is an integral part of Biden’s economic agenda. “The current focus is on providing relief and helping families keep a roof over their heads and food on the table, not increasing taxes,” he said. she declared.
Biden last week introduced a $ 1.9 trillion economic aid package that contained a wide array of relief provisions. They included federal unemployment benefits, direct payments, expanded tax credits for low-income Americans, aid to state and local governments, and vaccine distribution funds.
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