- Republicans launched attacks on the Biden stimulus plan during the Yellen confirmation hearing on Tuesday.
- Sen. Chuck Grassley calls it a ‘laundry list of liberal structural economic reforms’.
- The trial is likely to predict the strong opposition that many parts of Biden’s economic agenda will face on Capitol Hill.
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Senate Republicans on Tuesday stepped up their criticism of President Joe Biden’s economic rescue package, suggesting it is likely to find strong resistance among GOP lawmakers cautious about supporting more federal spending.
During the confirmation hearing for Janet Yellen – Biden’s choice for treasury secretary – Republicans tried to put her on the defensive of Biden’s $ 1.9 billion economic aid plan.
Sen. Chuck Grassley of Iowa, the outgoing chair of the Senate Finance Committee, described the plan in his introductory remarks as a “laundry list of liberal structural economic reforms.”
Then Republicans started making broad figures against it.
Senator John Thune of South Dakota, the second-ranking Republican in the Senate, said he was concerned about “the enormous amount of debt we are incurring” and urged lawmakers to disregard it in the coming months. It swelled during the term of President Donald Trump when Republicans introduced a major tax cut for corporations in 2017.
Yellen also disputes the arguments of South Carolina Senator Tim Scott that a minimum wage of $ 15 – an important provision in the plan – would cause huge job losses. She pointed to a large amount of research that indicates in neighboring states where one increases the hourly wage and the other does not, the loss of jobs is ‘very little’ in the state which did increase the employers.
Pennsylvania Senator Pat Toomey warned of ‘another spending exhaustion’ due to Biden’s economic stewardship. He later told Yellen: “I look forward to working with you, but I must admit that the contours of the stimulus bill as proposed by the Biden government are going to make it difficult.”
The trial is likely to predict the strong opposition that many parts of Biden’s economic agenda will face on Capitol Hill. As Treasury Secretary, Yellen will play an important role through a divided Congress in overseeing the administration’s plans. Democrats will have very slim majorities in both the House and Senate.
Yellen defends the enormous amount of spending that Biden is looking for. She argued that the economic recovery was jeopardized unless Congress acted swiftly to approve more federal aid to mitigate the devastation caused by the pandemic, especially among women and minority communities.
She also sought to overcome Republican concerns about the prospect of tax increases during an economic downturn, as it is at the heart of Biden’s economic agenda. “The focus right now is on relief and helping families keep a roof over their heads and keep food on the table, not raising taxes,” she said.
Biden launched a $ 1.9 billion financial aid package last week that includes a wide range of relief services. These included federal unemployment benefits, direct payments, extensive tax credits for low-income Americans, assistance to state and local governments, and the distribution of vaccines.
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