US Treasury Secretary warns reversing tax incentives would be "historic mistake"

(MENAFN) In a speech delivered Thursday in Raleigh, North Carolina, US Treasury Secretary Janet Yellen warned that reversing the tax incentives introduced under President Joe Biden's administration would be a "historic mistake." Yellen stressed that removing these incentives could lead to increased costs for working families at a time when lowering prices is crucial. Additionally, she highlighted that such a rollback could undermine significant investments in manufacturing across the country, investments that are creating jobs which often do not require a college degree. Furthermore, Yellen argued that eliminating these incentives might give other countries, including China, a competitive edge in critical industries.

Yellen also emphasized the benefits of the Inflation Reduction Act (IRA), signed into law in August 2022, which offers clean energy tax credits to tax-exempt entities like colleges and universities. She pointed out that the IRA was crafted to help families reduce and stabilize their energy bills both immediately and over the long term. According to Yellen, 3.4 million American families have utilized USD8.4 billion in residential clean energy and home energy efficiency tax credits for the 2023 tax year. These credits have averaged USD5,000 per family and have been used for investments such as solar panels and battery storage.

Additionally, Yellen noted that American consumers have saved USD1.5 billion on upfront costs for over 250,000 clean vehicles, leading to reduced spending on gasoline. She underlined that these benefits are part of a broader strategy to promote clean energy and support families in managing their energy costs. Yellen's remarks underscore the administration's commitment to maintaining and expanding these tax incentives as a means of fostering economic growth and competitiveness.

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