Treasury Secretary Janet Yellen says a ‘shocking’ $7 trillion in taxes are going uncollected

“We’re trying to make meaningful steps to close that gap.”

Treasury Secretary Janet Yellen said a “shocking” amount of taxes are going uncollected by the federal government, and urged additional action to fetch this money from the wealthiest Americans.

“It’s really shocking and distressing to see estimates suggesting that the gap between what we’re collecting in taxes on current tax and what we should be collecting – if everybody were paying for taxes that are due – that amounts to over $7 trillion over a decade,” Yellen said in an interview with The Atlantic published on Tuesday.

She went on: “We’re trying to make meaningful steps to close that gap.”

Yellen’s remarks underscore the Biden administration’s efforts to collect tax revenue from the wealthiest Americans and multinational companies to finance $4 trillion in spending programs to overhaul the economy. President Joe Biden is also increasingly starting to say he does not want his plans to swell the federal deficit.

Yellen insists U.S. will see ‘big returns’ by passing Biden spending proposals

 Productivity to rise

 Treasury Secretary Janet Yellen promoted the Biden administration’s proposals for trillions of dollars of new spending on Sunday, arguing that “there will be a big return” for the nation if Congress approves President Joe Biden’s plans on infrastructure, education and jobs.

“The plans are extremely important and necessary to invest in our economy so that we can be competitive and have families and children succeed, invest in infrastructure, in R&D, and things that shore up middle-class prosperity — education, childcare, and health care,” Yellen said in an interview on “Meet the Press.”

Yellen Says U.S. Inflation Risk Remains Small, Manageable

Yellen said that the US could see full employment next year

Treasury Secretary Janet Yellen said U.S. inflation risks remain subdued as the Biden administration pumps $1.9 trillion in pandemic relief into the economy and a return to full employment comes into view. “Is there a risk of inflation? I think there’s a small risk and I think it’s manageable,” Yellen said on ABC’s “This Week” on Sunday. Some prices that fell last year when the Covid-19 pandemic spread through the U.S. will recover, “but that’s a temporary movement in prices,” she said.

“I don’t think it’s a significant risk,” said Yellen, a former Federal Reserve chair. “And if it materializes, we’ll certainly monitor for it but we have tools to address it.”

Biden on Thursday signed into law the pandemic relief package, which provides funding for vaccinations and delivering aid to households, businesses and state and local governments. Yellen and other officials insist the aid – which comes on top of pandemic relief passed by Congress last year — is badly needed for an economy slammed by Covid-19, particularly low-income workers heavily represented in service industries, despite signs of recovery.