Scott Bessent, the U.S. Treasury secretary nominee, faced tough scrutiny on Thursday from both sides of the aisle during his confirmation hearing. Senators grilled Bessent on topics ranging from tax policies and tariffs to China, Russia sanctions, and the future of the IRS’s Direct File system.
Defending President-elect Donald Trump’s economic agenda, Bessent warned of potential economic disaster if Congress fails to extend provisions of the 2017 Tax Cuts and Jobs Act. He also stressed the importance of maintaining the Federal Reserve’s independence and called for more robust U.S. sanctions targeting Russian oil.
Sen. Lindsey Graham, a Republican from South Carolina, introduced Bessent to the Senate Finance Committee, praising his credentials and commitment to the country. “Your ship came in with this guy,” Graham remarked.
However, Democratic senators, including Ron Wyden of Oregon and Michael Bennet of Colorado, criticized the nominee for backing Trump’s tax cuts, which they argue disproportionately benefit the wealthy while exacerbating the national debt, now exceeding $36 trillion. Bennet accused Bessent of shedding “crocodile tears” over the debt while supporting policies that significantly contributed to it.
Before becoming a close Trump adviser, Bessent, a billionaire hedge fund manager, had donated to Democratic causes, including Al Gore’s presidential campaign, and worked under George Soros, a notable Democratic donor.
Republican Sen. Ron Johnson of Wisconsin questioned Bessent on reducing federal spending to pre-pandemic levels, a challenge compounded by the growing national debt.
In his testimony, Bessent committed to preserving the IRS Direct File program through at least the 2025 tax season, despite opposition from some Republican lawmakers who view the program as redundant. He also called the Biden administration’s Russia sanctions insufficient, advocating for a more aggressive approach to counter Russian energy influence.
Bessent was one of several candidates Trump considered for the role of Treasury secretary, alongside billionaire John Paulson and Howard Lutnick, who was nominated for commerce secretary. If confirmed, Bessent will oversee key Treasury agencies, including the IRS, which received significant funding under the Inflation Reduction Act—funds that remain under threat of being rescinded.
As Treasury secretary, Bessent would serve as Trump’s chief fiscal advisor and play a pivotal role in managing public debt, inflation, and financial market stability. He outlined a vision prioritizing productive investments to spur economic growth while curbing wasteful spending that fuels inflation.
Democratic senators, including Elizabeth Warren of Massachusetts, pressed Bessent on various issues, submitting over 100 questions in advance. Topics included agency independence, housing policies, and financial stability oversight. Additionally, some Senate Democrats circulated allegations that Bessent evaded roughly $1 million in taxes through his hedge fund. Bessent denied wrongdoing, stating he is current on his taxes and actively litigating disputed amounts.
Bessent pledged to close his hedge fund if confirmed, underscoring his commitment to transparency. He also supported extending provisions of the Tax Cuts and Jobs Act, despite projections estimating its cost at $6 trillion to $10 trillion over a decade. To offset the impact on the federal deficit, Bessent called for spending cuts and adjustments to existing tax policies.
The hearing lasted over three hours, with senators scrutinizing Bessent’s positions on tariffs, China, tax reform, and potential conflicts of interest. Despite the intense questioning, Bessent reaffirmed his belief in balancing fiscal responsibility with measures to stimulate economic growth and maintain market confidence.
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