Remarks by Secretary of the Treasury Janet L. Yellen on Pennsylvania Joining IRS Direct File

today with Governor Shapiro Congressman Bole and congresswoman scandin we're here to make the exciting announcement that Pennsylvania will offer direct file to its residents starting next filing season the US economy today is strong unemployment is near historic lows and inflation is significantly declined but many Americans are concerned concerned with the High Cost of Living they're struggling to make ends meet so bringing down costs for American families is the Biden Harris administration's top economic priority and this means doing everything we can to address the cost of Health Care housing and energy and tackling challenges that have been building for decades it also means making it simpler and cheaper for Americans to pay their taxes and get back what they're owed it should be easy to meet your tax obligations and claim the credits deductions and refunds for which you're eligible instead the Internal Revenue Service has been underfunded that means the taxpayers have not gotten the support they deserve taxpayers across the country have had to pay pay for-profit companies hundreds of dollars a year to file their taxes and too many eligible taxpayers have missed out on tax credits that would give them crucial Breathing Room in their household budgets the inflation reduction act has enabled us to change this in the less than two years since it was past we've driven significant transformation at the Internal Revenue Service to drastically improve the taxpayer experience we massively improve customer service including through modernizing our call centers dramatically reducing call weit times from 28 minutes to around just 3 minutes and adding a new call back option that save taxpayers an estimated 1.4 million hours of waiting on hold we've also been able to expand operations at taxpayer assistance centers serving almost 500,000 more taxpayers last year than in the prior year we redesigned more than a hundred notices made them available online so it's easy for taxpayers to understand what actions they need to take and we enhance popular tools such as where's my refund enabling taxpayers to better anticipate their refunds and plan their budgets we also piloted the program we're focused on today direct file allows eligible taxpayers to file their taxes online for free directly with the IRS it saves taxpayers money upfront they do not have to pay to prepare or file their return and it saves the money on the back end by helping them get their refunds and claim the tax credits they deserve it makes the whole process easier and more efficient I'm proud that the direct file pilot this past filing season was a significant success to make sure the pilot went smoothly we focused on taxpayers in 12 States and with simple returns over just five weeks interest grew as we got the word out and taxpayers started using the product by the final week direct file was processing more than 5,000 accepted returns each day and by the end of the filing season more than 140,000 taxpayers across all 12 of the pilot States filed through direct file far exceeding the 100,00 ,000 goal we had set and these taxpayers saved $5.6 million in federal filing fees and received $90 million in refunds taxpayers also liked the product and they found it easy to use 90% of survey respondents rated their experience with direct file as excellent or above average they appreciated that it saved them time filing allowed them to quick ly fixed mistakes provided customers support and that there were no fees or upsells and using direct file increased public trust in the Internal Revenue Service this success fueled demand for direct file from taxpayers across the country we heard from over 200 organizations representing communities throughout the United States and we also heard from more than a 100 members of Congress so in June IRS commissioner worl and I announced we were making direct file a permanent offering and we invited all 50 states to participate starting as soon as next filing season today and thanks to Governor Shapiro Pennsylvania joins the growing list of states that have committed to join direct file with plans to bring direct file to more than 1 and a half million Pennsylvania residents starting next January taxpayers deserve to see how our tax system should work and thanks to the IRA we're finally able to make that happen I want to also thank Congressman Bole and congresswoman scanland for their support of the Investments we're making in the IRS and let me congratulate Governor Shapiro on this additional step forward I look forward to working with state and local leadership across the country to advance the Biden Harris administration's agenda to lower costs for American families thank [Applause] you well good morning everybody and let me Begin by saying it is such an honor and a thrill to have secretary Yellen here in Philadelphia in the City of Brotherly Love and sisterly affection one of the greatest fiscal minds and finest public servants of Our Generation the fact that she has chosen Philadelphia for this important announcement to highlight the great work at the US Department of Treasury means a great deal to us and I believe I can speak on behalf of my good friends and two very fine public servants in and of themselves Congressman Bole and congresswoman scanland we are thankful that you are here with us us today uh to highlight this awesome new tool from your department and I want to say a special thanks to your team for working with us on not just this but so many other things that have helped repair and rebuild the infrastructure across this Commonwealth and really give people a shot here in the Commonwealth of Pennsylvania I've said this many times I'll say it again um we believe the Commonwealth of Pennsylvania should be a place where everyone has the freedom to chart their own course and the opportunity to succeed and thanks to the Biden Harris Administration and the contributions of secretary Yellen uh we are well on our way to ensuring that in rural urban and Suburban communities across this great Commonwealth you've also heard me say many times that we live by three letters in our Administration GSD and out of respect for the fine secretary I'll simply say that stands for get stuff done we focus on getting stuff done every day for the good people of Pennsylvania making sure that government can be a positive force for good in their lives and making sure that there is no wrong door to entry when you need support and service from your government we're mindful that in getting support and service from your government it is on us to make sure we speed up government as well that we make it work at the speed of business that we make folks be able to access their government not just during 9 to 5 hours but when it works for them when it works in their family structure when it works Works in their daily and busy lives that is why one of the first executive orders that I signed as governor was to speed up our permitting process I share that with you because it's directly on point to how we want to make government more accessible to all pennsylvanians you know your lives are touched by some engagement or involvement with state government every day whether you realize it or not a small business owner that wants to open up a barber shop or a large corporation that dots our Center City Skyline they both have to apply for a business license in order to operate here in the Commonwealth of Pennsylvania the day I was sworn into office it took eight weeks to get that simple business license in the Commonwealth thanks to my executive order and my team's hard work today that same business license takes just two days to get here in the Commonwealth of Pennsylvania permits touch the lives of all pennsylvanians we know we have a teacher shortage in our Public Schools all across this com something we've been working very hard to fix the day I took office it took 12 weeks to get a public school educator certified today it is down to just one week I share those two examples with you because they're examples of how we have tried to make government work more quickly and work more effectively and efficiently for the good people of Pennsylvania exactly what the secretary is here to announce today when it comes to taxpayers we have also put in place a system where if we don't meet the market marks that we set for our constituents if we don't meet the marks we set for our fellow pennsylvanians we will give you your money back for your permit your license or your application fee so if we tell you it's going to take a certain amount of time and we don't hit that Mark we'll give you your application feedback putting our money where our mouth is and as we do all this work to speed up government we want to make sure as I said there is no wrongdoer and there is ease of access when it comes to all pennsylvanians being able to do the work that they need to do that's why we built inhouse codep our very own Tech startup to work on making our forms more accessible to making our products more in line with how everyday pennsylvanians operate we actually have a saying at code PA their goal is to make forms that suck less and I realize that may not be the kindest or gentlest way to talk but the truth is anyone who's interacted with government before knows it can be a frustrating process one of the first products they worked on was allowing people to file their state taxes through uh our my paath system in a way that uh was much easier for people so they didn't have to use third- party softwares or didn't have to consult an accountant nothing against accountants of course well the work we've done through code PA and our portal uh through our Commonwealth now thankfully is in a position to complement the incredible work that the secretary has put forth thanks to the Investments that our Congress people along with Senator Casey and fedman have put in place and that is to allow people not just to file their taxes simply online for the Commonwealth of Pennsylvania but for the federal government as well this is a GameChanger this is going to allow people ease of access to their government showing that there is no wrong door saving them hundreds if not thousands of dollars on software and other services that maybe they really didn't need in the first place and it is going to allow them to be far more efficient in their lives not just being able to pay their taxes more efficiently but then reclaim that time so they can have more time with their kids more time at work more time just enjoying themselves here in the Commonwealth of Pennsylvania this free online system I am here to tell you will be in effect for all pennsylvanians for the next filing season we are committed to that work we are ready for that to go on online and we couldn't be more grateful to secretary Yellen and her team for their willingness to Pilot this and now to make it available to all 50 states and so I just want to close by again thanking the secretary thanking the Biden Harris Administration for their Investments here in the Commonwealth thank them for joining us and understanding that there should be no wrong door to entry for people to be able to access services from their government and understanding the important powerful role government can play in people's lives to streamline things to make things easier to make things quicker and to make things more efficient that's the way we do our work every day in here in the Commonwealth that's the way the Biden Administration the Harris Administration has operated and certainly the way the secretary has and I'm grateful Madam Secretary for you being here today and for your leadership thank you all very very [Applause] much well to Echo uh what what the governor said Madam Secretary welcome uh I am honored that you here uh in my congressional district uh literally just two blocks above one of my uh up the street from one of my constituent service offices to make this incredibly exciting announcement I also want to thank our governor uh for participating and taking the lead to make sure all pennsylvanians will be able to take full advantage of this new direct file program as my colleague congresswoman Mary gayken knows full well when we fought so hard for the inflation reduction act two years ago tucked into that truly Monumental transformative piece of legislation was IRS direct file a number of us from the Ways and Means Committee on which I serve had pushed for years and years to give the IRS more resources secretary Ellen cited the 28 minutes average weight time just a few years ago I can tell you from our constituent service office just a couple blocks away for years and years the number one constituent complaint was about the IRS so the improvements that have been made through the inflation reduction act and that you both are carrying out at the federal and state level respectively truly transformative in the lives of ordinary philadelphians and ordinary pennsylvanians and indeed of course ordinary Americans I also cite the fact that unfortunately there are those where Mary gay and I uh work uh who are attempting to take away these resources from the IRS when we talk about the additional resources that we devoted to the IRS it's to do things like this it's to put the service back Internal Revenue Service well if those efforts succeed and in the future perhaps near future money is Stripped Away from the IRS it's things like direct file that are a threat now I can tell you in addition to my service on the Ways and Means Committee I'm the ranking member I hope soon chairman uh of the budget committee one of the top priorities for our committee if I if I am to be chair and we are to be in the majority we'll be protecting programs like direct file making sure that all 50 states and all 333 million Americans are able to fully participate because Josh said it exactly right it's in the end of the day what we are about is attempting to make government more accessible and more reachable for everyday Americans so I'm honored again that you've you've chosen Philadelphia I hope you and your large staff spend a lot of money while you're here uh I have some recommendations uh depending on how long you're staying uh and with that uh let me introduce my colleague a very good friend of mine congresswoman Mary gay scanland thank you everyone it is so great to be here with secretary Yellen and Governor Shapiro to announce that pennsylvanians will have access to the irs's free direct file tax filing tool this coming tax season filing your taxes should be quick easy and free it is in most other countries there's no reason to pay hundreds of dollars for a tax preparation company to file a simple return so when you go to file your taxes next year you're going to be able to use the irs's direct filing tool it'll give a free simplified form to file taxes and speed up any refunds or credits that our taxpayers are owed direct file can take the headaches and the cost out of filing taxes in states where this program has been piloted this past year it was wildly successful with 90% of the people who used it rating their experience as excellent or above average that's 140,000 taxpayers who've already had the opportunity to use that direct file system claiming over $90 million in refunds and saving about 5.6 million in filing fees and all of this is possible because of the legislation that Congress passed and the Biden Harris Administration put into effect giving the IRS the funding and the authorities to provide taxpayers with direct file it was a provision in the inflation reduction act it included a big funding boost so the IRS could do a couple things one was to improve customer service reducing delays in returning refunds and also to make sure that Millionaires and billionaires who have avoided paying taxes would pay their Fair share so two big things going on here with secretary yellen's help making sure Millionaires and billionaires pay their fair share and Mak making sure that everyday Americans everyday pennsylvanians can file their taxes quickly and easily and get their refunds quickly and easily so I was proud to vote for the inflation reduction act I'm happy to see Pennsylvania benefiting from this legislation very grateful to Governor Shapiro for making sure that the Pennsylvania tax system is going to be part of it and we look forward to seeing the roll out thank [Applause] you we'd be glad to take some questions first question is uh Lauren make from NBC behind behind the yes thank you so much welcome to Philadelphia um Madam Secretary there are elements of the tax bill that was passed during the Trump Administration that are set to expire what are you preparing for at the treasury Department and what should Americans taxpayers be prepared for well President Biden um has set out a set of principles that will guide his um or his successors um negotiations over uh the expiring Provisions which are mainly in the individual uh tax code and one principle is he wants to make sure that every household making less than $400,000 will not see um an increase in their tax bills he wants to protect hardworking Americans and would like to see uh the child tax credit enhanced but he feels very strongly in tax fairness and that wealthy individuals should pay their Fair share and um he would not be willing to um see extended the provisions that benefit th those very high income households um in addition to that he's proposed uh changes uh to on the corporate side to um raise the corporate income tax somewhat not not back to its pre-tcja level but to make it somewhat higher to close International tax loopholes and to put in place um other reforms that would ensure that corporations and Wealthy individuals pay their their fair share Alan raport New York Times thanks very much um one on the Pennsylvania economy for uh both Governor Shapiro and secretary Yellen um uh related to us steel President Biden said earlier this year that he wants us deel to remain American-owned and operated um do you agree with that um and would you like to see the Biden Administration or future Harris Administration block the nepon steel acquisition and for secretary Yellen where where does that review stand well let me say for my part since um I chair the cifas process that in principle would review such a transaction I regret I'm not able to get into the specific specifics of any transaction we will look at it from a national security uh as we would look at any transaction from a national security perspective and try to make a reason judgment but I'm not able to talk about the specifics I'm incredibly proud of the role that the Commonwealth has played in strengthening um our society bringing democracy around the world uh and fueling growth and really the the construction of the modern-day American labor movement thanks to our strong manufacturing base here in the Commonwealth of Pennsylvania one of the key components of that strong manufa manufacturing base pardon me uh of course is steel and so much of that work has been done by us steel over so many generations I have made very very clear that the success of us Steel is due to the incredible women and men of the US Steel Workers Union who have done this backbreaking work over many generations oftentimes same families through multiple Generations doing that work and so I review any potential deal through the prism of how does it impact Pennsylvania workers number one and what does it mean for the future of the Commonwealth of Pennsylvania to be able to continue its primary post as a manufacturing leader here in this country and on both of those questions I have serious concerns about the deal that has been put forth I don't want any of my comments to in any way be seen as undermining the important process that is now going on at the federal level but speaking from a state perspective as Governor um if the US Steel Workers aren't happy with this deal which they are not I'm not happy with this deal if I don't see a future where us steel manufacturing continues here in the Commonwealth of Pennsylvania and is expanded from what is happening right now I'm not happy so I've got really serious concerns obviously the federal government will make the ultimate decision here but what's been put forth on the table is not something uh that would enjoy my approval and I'm going to continue to stand directly side by side and locked arms with us Steel Workers the very people who have built this Commonwealth in this country they deserve real respect and what is contained in this deal at this point is not respectful to them and to their members um Aliyah schider uh pH Inquirer could you talk about the eligibility um for Pennsylvania to use direct file all pennsylvanians will be eligible it will be ready and online for the next ta tax filing season we have members of the Department of Revenue staff who are here who can walk you through the specifics of how to access it online but we're ready to rock and roll thanks to the work of code PA the collaboration with the Department of Treasury treasury we're ready to go and um the Comm wealth will be better off thanks to secretary yellen's Vision in this space Rich Rubin Wall Street Journal uh for the governor the one piece of that expiring tax law next year is the $10,000 cap on State and local tax deductions what's been the impact of that cap here in Pennsylvania and what should Congress do with it when it's set to expire well the members of Congress can speak to what they plan to do on it um and obviously the the president has been very vocal on these issues I can tell you that um we fight to make sure we reduce costs especially for middle class families here in the Commonwealth as Governor I've cut taxes multiple times we delivered the largest targeted tax cut for seniors in nearly 20 years we delivered the largest child care tax cut for families with children in valid care ever in the history of our Commonwealth we've cut business taxes twice in Pennsylvania and I've sought to cut other taxes uh which we haven't been able to get through shockingly I'm you know I'm the only governor in the entire country with a divided legislature shockingly I'm for more tax cuts than some of the Republicans who lead the Senate um you can go ask them why but I want to see us put more money back in the pockets of pennsylvanians we've successfully done that here at the state level obviously members of Congress will have a lot to Grapple with uh when they come back and into session next year under what I hope will be Democratic majorities in the house and the Harris Administration working to put more money back in the pockets of all pennsylvanians particularly middle class pennsylvanians uh Dave Lauder Reuters EXC thank you I have a question uh tax question for both the secretary and for the governor um uh secretary Gan uh would you anticipate uh in in the uh very detailed uh tax plan that that President Biden has has proposed in in his budgets uh would you anticipate that there would be any changes likely uh taken on by by vice president Harris uh should she be elected in that plan and then for for governor Shapiro uh you've cut business taxes uh considerably in this state uh can you square that with the plan that um the president has laid out which would you know considerably raise corporate taxes um is that kind of at at Cost purposes thank you so on the first part I would just say that um vice president Harris has um indicated her support for um avoiding tax increases for Middle inome families so I believe that's a principle that uh she would adhere to to um and beyond that um well she's played an important role in um in determining our economic policy and general approach to uh tax fairness over the last three and a half years I wouldn't want to speak about uh details with respect to how she might approach the upcoming negotiation I think those who know me know I I am competitive as hell and I want Pennsylvania to win every single time and for us to win uh when it comes to Economic Development when it comes to job creation uh I knew when I got sworn in as Governor about a year and a half ago that we needed to do much better I spoke about one aspect of doing better earlier in my remarks and that is speeding up business getting permits and licenses done more quickly and I just signed into law even further advancing our efforts on perming reform to speed up that process I knew we needed an economic development strategy that focused on some of the core sectors of our economy where I saw opportunities for significant growth I knew that we needed to put real resources into Economic Development and one example of that is a new fund I was able to get done on a bipartisan basis to put a half a billion dollars into site development all across Pennsylvania understand that we have made these Investments at a time where as I said before I'm the only governor in the whole country with a divided legislature we've been able to bring Democrats and Republicans together to get meaningful things done when it comes to Economic Development we also understood that we needed to have a more advantageous tax environment for our businesses and it was one component of an overall strategy in order to grow jobs and create more Economic Opportunity in Pennsylvania that's why I've been so aggressively working to cut business taxes and make sure that we have an environment here that works for business owners where they not only want to expand operations if they're already here but where I can entice businesses from other states to come and locate here in Pennsylvania and I think having that multi-prong strategy which does include tax cuts for businesses has helped us become far more competitive than we were a year and a half ago um the proof is in the pudding in terms of the more than2 billion dollars in private Capital that we've seen invested as a result of our direct engagement and the jobs that we've been able to create on my watch with new businesses coming here so it all fits together tax cuts speeding up businesses having a strategy and having real resources to invest in the effort to create jobs and Economic Opportunity and last question Victoria drino from Bloomberg thank you um just beyond tax policy I had a question on economic policy for both of you uh secretary Yen for the past three and a half years you've worked in the Biden Harris Administration I was just wondering based on that experience what you would expect the economic priorities of a Harris Administration to look like and in in terms of what you think whether there's any unfinished business or some kind of area where you would like to see progress kind of from the get-go and Governor Shapiro if I could ask for your view more broadly on the Biden Harris economic record and if you think vice president Harris should fully Embrace Biden nomics or if there's any shift you think is warranted in any area thank you well what I can say is that I've worked uh closely on a number of different um policy initiatives with vice president Harris over the last three and a half years um we've worked to increase the flow of resources of lending uh possibilities in lowincome neighborhoods on bolstering um small small businesses in their opportunities um I know that she's focused on um middle inome families and making sure that they Thrive um she's been supportive of um things like paid leave um that uh were elements of the Biden ad Biden Harris Administration program at the outset that haven't been passed into law the child uh tax credit trying to make sure that child care is more affordable but uh I wouldn't want to uh try to specify uh more than that about what her priorities will be but um these are certainly things she's focused on and been committed to over the last three and a half years the Biden Harris uh policies and work has had a profoundly positive impact on the economy of Pennsylvania and the people of Pennsylvania and I want to share some specifics but I would be remiss if I didn't thank Congressman Bole and congresswoman scandin because none of those Investments would be possible but for their affirmative votes and hard work behind the scenes to not only get those bills passed but to make sure that Pennsylvania gets more than its fair share in the process let's examine the record we've got 276,000 homes and businesses without high-speed internet in Pennsylvania some in urban areas like this but primarily in rural communities across Pennsylvania thanks to the Biden Harris Administration we will now over the course of the next 5 years connect every one of those 276,000 homes and businesses to high-speed internet that means greater access to learning for kids greater opportunities for small business startups greater access to health care especially in rural communities where it's hard to access Specialists for particular care that's a GameChanger there's a small town in Western Pennsylvania called esin it's out in alag County where Pittsburgh is um it's predominantly minority Community a small burrow and for years when moms would turn on the tap and give their kid a glass of water there was lead in those drinking water lines that they had to deal with that they either had to serve to their kids or they had to have special filtration systems in order to be able to make sure it was safe thanks to the Biden Harris Administration those water lines are literally being ripped up out of the ground and replaced with water lines where moms and dads don't have to worry about their kids health and safety anymore we've got serious infrastructure projects that are going to help improve lives all across Pennsylvania from the capping project in Chinatown which I believe is in your District Congressman to I was standing with secretary Buddha jedge just last week the i83 Southbridge in Harrisburg where 200,000 cars and trucks go over every single day not to mention one of the most serious infrastructure disaster ERS in our nation's history when I95 collapsed just about a year ago it was the Biden Harris Administration who were my partners in that effort to get that road reopened in just 12 days the investments in these infrastructure projects are having a positive impact on people's lives every single day whether it's reducing commute times whether it's helping businesses be able to get their product to and from Market more quickly whether it's people being able to live a healthier safer life this is really impactful and this is stuff that's happening right now now think about the future thanks to a Biden Harris Administration what it means for the Commonwealth in Pennsylvania our Commonwealth is home to two Regional hydrogen hubs we are the only state in the entire nation to have earned two Regional hydrogen hubs from the Biden Harris Administration thanks to secretary grolm and others we are poised to be the clean energy capital not just of the United States but of the world and put a whole lot of people to work from our universities to our great Building Trades people are going to be working in this space to create an even better clean energy economy I I've said this to the president privately and I'm not one to get into our private conversations I don't think the president would mind me sharing this with him or with all of you he has been in public service for over 50 years including a whole lot of years where he served as our third US senator from Pennsylvania I bet you didn't know we had three Senators for a while here the impact of his service is going to be felt lot longer than the 50 years that he served when you think about people's kids and grandkids today who are going to be working on these projects that President Biden and vice president Harris put in place that is going to strengthen our economy for generations to come it's going to help put food on the table for middle class families for generations to come and it's going to make Pennsylvania and this country far more competitive for generations to come thanks to President Biden's service we're indebted to he and vice president Harris for the Investments they've made here they matter they make a difference and we're going to continue to do everything in our power to take the support of the federal government as we are doing here today on this particular uh tax filing issue and so much more and utilize that to benefit the good people this Commonwealth in this country thank you all very very much [Applause]