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Scott Bessent, President-elect Donald Trump’s nominee for Treasury Secretary, defended extending the 2017 Tax Cuts and Jobs Act during his Senate confirmation hearing on Thursday, framing it as critical to U.S. economic stability.
A billionaire hedge fund manager from South Carolina, Bessent warned of dire consequences if the tax cuts expire, including a “gigantic” tax increase on the middle class.
“This is the single most important economic issue of the day,” Bessent told the Senate Finance Committee. He emphasized that failing to renew the cuts would lead to economic instability that would disproportionately harm the middle and working class.
Signed by Trump during his first term, the 2017 tax cuts are set to expire in 2025, potentially increasing taxes for millions of Americans by over $1,500 annually, according to groups like Americans for Prosperity (AFP).
While AFP is launching a $20 million campaign to support extending the cuts, critics, including Sen. Elizabeth Warren (D-Mass.) and the Center for American Progress, argue the tax plan primarily benefited the wealthy while offering little to ordinary workers.
Bessent countered these claims, saying Trump’s policies would usher in a “golden age” of economic prosperity.
“President Trump has a generational opportunity to unleash a new economic golden age, creating more jobs, wealth, and prosperity for all Americans,” Bessent said in his opening remarks.
He also outlined his broader economic priorities, including securing supply chains, deploying strategic sanctions, and maintaining the U.S. dollar as the world’s reserve currency.
Bessent backed Trump’s proposal to impose tariffs ranging from 10% to 20% on imported goods, with tariffs on Chinese imports potentially reaching 60%. He rejected concerns from lawmakers like Sen. Ron Wyden (D-Ore.), who argued such tariffs would harm American consumers.
Bessent faced scrutiny from lawmakers on several topics, including the federal minimum wage, which has remained at $7.25 since 2009. Sen. Bernie Sanders (I-Vt.) pressed Bessent on whether he would support raising the wage.
“I believe the minimum wage is more of a state and regional issue,” Bessent replied, confirming he would not support increasing the federal minimum.
When asked about his stance on Russia, Bessent pledged to impose tougher sanctions to help end the war in Ukraine. “If any officials in the Russian Federation are watching this hearing, they should know that if I’m confirmed, I will fully support stronger sanctions,” he said.
Sen. Lindsey Graham (R-S.C.) introduced Bessent, urging bipartisan support for his nomination despite policy disagreements.
“This man has been successful in everything he’s tried to do,” Graham said. “He believes in President Trump’s economic agenda and wants to help make it successful.”
As Treasury Secretary, Bessent would oversee federal finances, including the IRS, and play a key role in shaping U.S. economic policy during Trump’s presidency.
