Wichita Standard

Rep. Estes Questions Secretary Yellen About 19% Inflation, Tax Hikes

Apr 30 2024

During a Ways and Means Committee hearing, Rep. Ron Estes raised concerns to Treasury Secretary Janet Yellen regarding the impact of inflation and tax policies under the Biden administration. Estes highlighted the significant inflation rate and its effects on American households, stating, "Inflation is cumulative, and hardworking Kansans have been suffering for the past three years now." He emphasized the substantial increase in costs for goods and services since President Biden took office, with households spending thousands more due to inflation.

Estes questioned Secretary Yellen about the administration's approach to inflation and tax promises, particularly regarding the recent statements on tax hikes for certain income brackets. He pointed out the potential implications of proposed tax changes on middle and lower-income earners, expressing concerns about the impact on American families.

Addressing the issue of international tax negotiations, Rep. Estes voiced apprehensions about the OECD's Pillar One and Pillar Two agreements, warning about the potential transfer of tax revenue from the U.S. to foreign governments. He highlighted the projected cost to the U.S. Treasury resulting from these agreements, emphasizing the need to protect the country's tax base.

In response to Estes' inquiries, Secretary Yellen discussed the ongoing discussions at the OECD and acknowledged the challenges posed by foreign countries' implementation of Digital Services Taxes. She noted the complexities surrounding tax policies in the digital economy and emphasized the importance of addressing tax certainty and consistency for businesses.

The exchange between Rep. Estes and Secretary Yellen underscored the ongoing debates and concerns surrounding inflation, tax hikes, and international tax agreements, shedding light on the complexities of economic policies under the Biden administration.