Trump treasury pick Scott Bessent calls for stronger Russia sanctions, Fed independence at confirmation panel

CBS News

President-elect Donald Trump’s pick to be treasury secretary, Scott Bessent fielded sharp questions Thursday at his confirmation hearing from Democrats and Republicans on tax policy, tariffs, China, Russia sanctions and the IRS tax filing system.
“There’s so many things I think you owe the American people after we have seen the catastrophe” from the tax cuts.
He also committed to shuttering his firm if confirmed to be treasury secretary.
Estimates from various economic analyses of the costs of the various tax cuts range from nearly $6 trillion to $10 trillion over 10 years.
He calls for spending cuts and shifts in existing taxes to offset the costs that extending the tax cuts would add to the federal deficit.

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At his confirmation hearing on Thursday, Scott Bessent, the nominee for Treasury Secretary under President-elect Donald Trump, was subjected to a barrage of questions from both Democrats and Republicans regarding tax policy, tariffs, sanctions against China and Russia, and the IRS tax filing system.

Senate Finance Committee member Bessent stated that the U.S. A. faces financial ruin if Congress doesn’t extend parts of Trump’s Tax Cuts and Jobs Act from 2017. Additionally, he maintained that the Fed should continue to operate independently of the president’s power and Congress. S. . More severe sanctions should be applied to Russian oil.

Republican Senator, a fellow South Carolinian, introduced him. As stated by Lindsey Graham, the U. S. requires a treasury secretary “who is knowledgeable, has the president’s trust, and is patriotic.”. Graham went on, “This guy came in with your ship. “.”.

But senators and other Democrats. Oregon’s Ron Wyden and Colorado’s Michael Bennet were frustrated that Trump’s pledge to extend parts of his 2017 tax cuts would favor the wealthiest taxpayers while contributing to the nation’s mounting debt, which has now topped $36 trillion.

While the Tax Cuts and Jobs Act increased the debt, Bennet accused Bessent of crying “crocodile tears” over the spending and debt. “After the catastrophe we witnessed with the tax cuts, there are a lot of things I believe you owe the American people.”.

Bessent is a billionaire who contributed to a number of Democratic causes in the early 2000s, including Al Gore’s campaign for president, before turning into a Trump adviser and donor. Additionally, he was employed by George Soros, a prominent Democrat supporter.

Republican Sen. Additionally, Bessent was questioned by Wisconsin Representative Ron Johnson regarding bringing national spending back to pre-pandemic levels.

During the 2025 tax season, which starts in January, Bessent pledged in his testimony to keep the IRS’ Direct File program in place, which enables taxpayers to submit their returns to the IRS directly for free. 27. Republican lawmakers claim that the program is a waste of money because there are already free filing programs in place, albeit they are not very well-liked.

He also criticized the Biden administration for having a sanctions regime that isn’t “muscular” enough and demanded better sanctions against Russia. “I think the previous government was concerned about increasing U. S. . election-season energy prices,” Bessent stated.

Trump considered a number of candidates, including Bessent. Before choosing Bessent as his nominee, Trump deliberated over Howard Lutnick, who he appointed as his commerce secretary, and billionaire investor John Paulson.

The treasury secretary’s duties include managing the national debt and advising the president on fiscal policy. Additionally, he would serve on the National Economic Council of the president.

Bessent, if confirmed, would be in charge of the Internal Revenue Service and other large Treasury Department agencies. Democrats’ Inflation Reduction Act gave the IRS a huge boost in funding, but that funding has always been at risk of being reduced.

Trump anticipates that he will help manage a soaring national debt, enable trillions of dollars in tax cuts, reset the global trade order, and maintain financial market confidence while ensuring inflation remains under control.

Bessent testified, “Effective investment that boosts the economy must be given precedence over wasteful spending that fuels inflation.”.

For hours, senators were supposed to grill the money manager about his opinions on cryptocurrency, the tax cuts under Trump, and possible conflicts of interest.

Sen. The D-Mass is Elizabeth Warren. More than 100 written questions were sent to Bessent beforehand by a member of the finance committee, asking him questions about agency independence, housing, treasury workforce issues, and financial stability oversight.

And a document being circulated by Senate Finance Committee Democrats claims Bessent has evaded paying about $1 million in taxes on his hedge fund. Bessent stated during the hearing that he and his spouse have paid their taxes on time and that he is under litigation for the disputed portion of his taxes. In addition, he promised to close his business if he was elected Treasury Secretary.

The 2017 Tax Cuts and Jobs Act, which Trump signed into law during his first year in office, has provisions that Bessent has supported extending. The costs of the various tax cuts are estimated by a number of economic analyses to be between $6 trillion and $10 trillion over a ten-year period.

In order to counteract the costs that extending the tax cuts would add to the federal deficit, he advocates for shifts in current taxes and spending cuts.

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