Treasury Secretary Yellen: Threading the needle on inflation. Treasury Secretary Janet Yellen told The Atlantic, “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy.” Later, she put a slightly different spin on her inflationary concerns in an interview with The Wall Street Journal: “I don’t think there’s going to be an inflationary problem, but if there is the Fed can be counted on to address them." Federal Reserve Chairman Jerome Powell says central bank is closely monitoring inflation.
Who’ll really bear the burden of a corporate tax increase? The Wall Street Journal considers (paywall) the question. TPC’s Steven Rosenthal said, “In the short run, it’s just shareholders, shareholders, shareholders… The corporate tax is like the best way to collect revenue from foreigners and rich guys.”
Treasury: States can seize stimulus payments for criminal restitution. The Department told senators Maggie Hassan and Joe Manchin that state or local government or private creditors can garnish economic impact payments to pay restitution to crime victims. Hassan and Manchin had urged Treasury to clarify the matter.
Kansas lawmakers override Gov. Kelly’s tax bill veto. Taxpayers in the Sunflower State will see $130 million in tax cuts and $35 million in new sales taxes after the legislature overrode Governor Laura Kelly’s veto of the $94 million tax package. Kelly argued the bill would lead to spending cuts of a magnitude last seen during Gov. Sam Brownback’s administration.
Argentina’s wealth tax is (mostly) working. The nation’s millionaires fought the wealth tax, but the Argentinian government has raised $2.4 billion, or 74 percent of the amount it targeted. So far, 10,000 people with assets exceeding $2.2 million paid the new tax, which can be as high as 5.25 percent of their wealth. The amount raised thus far is about 0.5 percent of Argentina’s gross domestic product.
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