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President-elect Donald Trump’s pick to become Treasury secretary, Scott Bessent fielded pointed questions Thursday during his confirmation hearing from Democrats and Republicans. tax policy, prices, China, Sanctions against Russia and the IRS tax reporting system.
Bessent told the Senate Finance Committee that the United States faces economic calamity if Congress does not renew provisions of the 2017 Trump Tax Cuts and Jobs Act. He also argued that the Federal Reserve should remain independent of the president’s influence and that U.S. sanctions on Russian oil should be more aggressive.
He was introduced by a fellow South Carolinian, Republican Sen. Lindsey Graham, who said the United States needs a Treasury secretary “who knows what he’s doing, who has the confidence of the president and who loves his country. Graham added, “Your ship arrived with this guy. »
But Democrats, including Sens. Ron Wyden of Oregon and Michael Bennet of Colorado, have expressed frustration that Trump’s promise to expand provisions of his 2017 tax cuts would benefit wealthier taxpayers and would add to the growing national debt that has topped $36 trillion.
Bennet accused Bessent of shedding “crocodile tears” over debt and spending, while the Tax Cuts and Jobs Act caused the debt to rise. “I think there’s so much you owe the American people after seeing the catastrophe” related to the tax cuts.
Bessent is a billionaire who, before becoming a Trump donor and advisor, donated to various Democratic causes in the early 2000s, including Al Gore’s presidential campaign. He also worked for George Soros, a major supporter of the Democrats.
Republican Sen. Ron Johnson of Wisconsin also asked Bessent a series of questions about reducing national spending to pre-pandemic levels.
In his testimony, Bessent pledged to maintain the IRS’s Direct File program — which allows taxpayers to file their returns directly to the IRS for free — at least for the 2025 tax season, which begins on the 27th. January. Republican lawmakers call the program wasteful. money because free deposit programs already exist, even if they are not popular.
He also called for tougher sanctions against Russia, criticizing the Biden administration for a sanctions regime that he said is not “robust” enough. “I think the previous administration was concerned about rising energy prices in the United States around election time,” Bessent said.
Bessent was one of several people Trump considered for the job. Trump took his time before choosing Bessent as his nominee, also considering billionaire investors John Paulson and Howard Lutnick, whom Trump chose as his nominee for Commerce secretary.
The Secretary of the Treasury is responsible for serving as the president’s fiscal policy advisor and managing the public debt. He would also be a member of the President’s National Economic Council.
If confirmed, Bessent would oversee numerous agencies within the Treasury Department, including the Internal Revenue Service. The IRS received a massive increase in funding thanks to Democrats’ Inflation Reduction Act, although that money has been under constant threat of being cut.
Trump expects him to help restore global trade order, enable multi-trillion dollar tax cuts, ensure inflation remains under control, manages a skyrocketing national debt while keeping financial markets confident.
“Productive investments that grow the economy must take priority over wasteful spending that spurs inflation,” Bessent testified.
Senators were expected to question the fund manager for hours about his views on cryptocurrency, Trump-era tax cuts and potential conflicts of interest.
Sen. Elizabeth Warren, D-Mass., a member of the Finance Committee, sent Bessent more than 100 written questions in advance, asking him about topics such as agency independence, housing, treasury personnel issues and financial stability monitoring.
Additionally, Democrats on the Senate Finance Committee are circulating a document alleging that Bessent avoided paying approximately $1 million in taxes related to his hedge fund. During the hearing, Bessent said he and his husband were up to date on their taxes and that he was in dispute over the controversial portion of his taxes. He also pledged to close his business if confirmed as Treasury secretary.
Bessent supported expanding provisions of the Tax Cuts and Jobs Act of 2017, which Trump signed into law during his first year in office. Estimates from various economic analyzes of the costs of various tax cuts range from nearly $6 trillion to $10 trillion over 10 years.
It calls for spending cuts and changes to existing taxes to offset the costs that extending tax cuts would add to the federal deficit.