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Scott Bessent, President-elect Donald Trump’s pick for Treasury secretary, asked pointed questions Thursday during his confirmation hearing from Democrats and Republicans. tax policy, tariff, china, russia sanctions IRS Tax Filing System.
Bessent told the Senate Finance Committee that the United States faces economic disaster if Congress does not renew provisions of Trump’s 2017 Tax Cuts and Jobs Act. He also argued that the Federal Reserve should remain independent from presidential influence and that US sanctions against Russian oil should be more aggressive.
Introduced by Lindsey Graham, a Republican senator from South Carolina, he said the country needs a Treasury secretary who “knows what he’s doing, has the president’s trust, and loves his country.” “Your ship came in with this guy,” Graham added.
But Democratic lawmakers, including Sens. Ron Wyden of Oregon and Michael Bennet of Colorado, have argued that Trump’s promise to extend provisions of the 2017 tax cuts would benefit the wealthiest taxpayers and contribute to a growing national debt that exceeds $36 trillion. They expressed dissatisfaction that it would aggravate the situation.
Bennet accused Bessent of shedding “crocodile tears” over debt and spending, while the Tax Cuts and Jobs Act increased debt. “I think you owe the American people too much after the disaster we’ve seen from tax cuts.”
Bessent is a billionaire who donated to various Democratic causes in the early 2000s, including Al Gore’s presidential bid, before becoming a Trump donor and adviser. He also worked for George Soros, a major supporter of the Democratic Party.
Republican Sen. Ron Johnson of Wisconsin also asked Bessent a series of questions about reducing state spending to pre-pandemic levels.
In his testimony, Bessent pledged to maintain the IRS’ Direct File program, which allows taxpayers to file their returns directly with the IRS for free, at least through the 2025 tax season, which begins Jan. 27. Republican lawmakers call the program a waste. This is expensive because free reporting programs already exist, even if they are not popular.
He also criticized the Biden administration’s sanctions regime as not going far enough and called for stronger sanctions against Russia. “I think the previous administration was concerned about rising U.S. energy prices during an election season,” Bessent said.
Bessent was one of several people Trump considered for the position. Trump took his time before confirming Bessent as his nominee, and also mulled over John Paulson and Howard Lutnick, the billionaire investors Trump nominated for Commerce Secretary.
The Secretary of the Treasury serves as the President’s fiscal policy advisor and is responsible for managing public debt. He will also be a member of the President’s National Economic Council.
If approved, Bessent will oversee large agencies within the Treasury Department, including the Internal Revenue Service. The IRS received a massive funding boost through the Democrats’ Inflation Reduction Act, but is at risk of ongoing funding cuts.
Trump wants to reset the global trade order, enable trillions of dollars in tax cuts, and inflation Keeping our country in check, managing our soaring national debt, and still maintaining confidence in our financial markets.
Bessent testified, “Productive investments that grow the economy should be prioritized over wasteful spending that causes inflation.”
Senators were expected to question the money manager for hours about his views on cryptocurrencies, Trump-era tax cuts and potential conflicts of interest.
Democratic Sen. Elizabeth Warren of Massachusetts, a member of the Treasury Committee, proactively sent Bessent more than 100 written questions interrogating topics including agency independence, housing, Treasury staffing issues and financial stability oversight.
Additionally, Democrats on the Senate Finance Committee are circulating documents alleging that Bessent evaded about $1 million in taxes related to his hedge fund. At the hearing, Bessent said she and her husband are up to date on taxes and are litigating controversial tax issues. He also promised to shut down the company if confirmed as finance minister.
Bessent supported extending provisions of the 2017 Tax Cuts and Jobs Act, which President Trump signed into law during his first year in office. Estimates from various economic analyzes of the cost of various tax cuts range from nearly $6 trillion to $10 trillion over 10 years.
He calls for cutting spending and shifting existing taxes to offset the cost of extending the tax cut, which would increase the federal deficit.
