WASHINGTON — President-elect Donald Trump’s nominee for Treasury secretary is poised for Senate confirmation following a comprehensive hearing on tax policy and tariffs’ impact on Americans. Scott Bessent, a hedge fund manager and Trump’s pick since November, largely aligned with the president-elect’s policies during the Finance Committee hearing, while also discussing his background and personal beliefs. Republican senators showed more support than their Democratic counterparts, although Bessent faced fewer concerns than some other nominees.
Chairman Mike Crapo, R-Idaho, praised Bessent’s qualifications, saying, “When it comes to your qualifications to be the next secretary of the Treasury, there is no room for debate.” Oregon Democratic Sen. Ron Wyden, however, expressed disappointment, stating, “Many people, myself included, hoped that the president-elect would pick a steady hand for Treasury secretary.”
Republican Sen. Lindsey Graham, who introduced Bessent at the beginning of the hearing, described him as highly qualified. “I’m here today to tell you, if you use qualifications as your test, this is the easiest vote you’ll ever take,” Graham said.
2017 tax cut law
During the hearing, Bessent addressed the 2017 Tax Cuts and Jobs Act, emphasizing its extension as crucial. “If we do not renew and extend, then we will be facing an economic calamity,” he warned, adding that financial instability would impact the middle and working class. Bessent advocated for extending the tax cuts across all income levels, even for those earning over $1 billion, to prevent negative effects on small businesses and job creators.
‘A spending problem’
Bessent attributed the national deficit to excessive spending rather than insufficient revenue. He stated, “We do not have a revenue problem in the United States of America; we have a spending problem.” In fiscal year 2023, federal spending reached $6.1 trillion, with $4.4 trillion in revenue, according to Congressional Budget Office data. Bessent suggested adjusting federal domestic discretionary spending to balance the budget, even though comprehensive cuts might have serious economic effects.
IRS direct tax filing
If confirmed, Bessent would have influence over the IRS’s Direct File program, which allows free tax filing. He committed to maintaining the program for the current tax season and expressed intent to review its effectiveness.
Tariffs eyed
Bessent outlined potential tariff strategies, including addressing unfair trade practices and using tariffs as a revenue source. He suggested using tariffs for negotiation, particularly mentioning Mexico’s fentanyl issue. While Bessent argued tariffs wouldn’t raise consumer prices, some Democrats and economists disagreed. Washington Sen. Maria Cantwell expressed concern over potential retaliatory tariffs.
Minimum wage
Responding to Vermont Sen. Bernie Sanders, Bessent indicated he would advise against raising the federal minimum wage above $7.25, viewing it as a regional issue.
Russian sanctions
Bessent supported increasing sanctions on Russia to end the Ukraine conflict, criticizing current measures as inadequate. He pledged to back President Trump’s efforts to escalate sanctions, particularly on Russian oil companies, to pressure negotiations.
Last updated 3:02 p.m., Jan. 16, 2025
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