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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.
Bessent told the Senate Finance Committee that the U.S. faces economic calamity if Congress doesn’t renew provisions of Trump’s 2017 Tax Cuts and Jobs Act. He also argued the Federal Reserve should remain independent from the president’s influence and U.S. sanctions on Russian oil should be more aggressive.
He was introduced by a fellow South Carolinian, Republican Sen. Lindsey Graham, who said the U.S. needs a treasury secretary “who knows what he’s doing, has the trust of the president and loves his country.” Graham added, “Your ship came in with this guy.”
But Democrats, including Sens. Ron Wyden of Oregon and Michael Bennet of Colorado, expressed frustration that Trump’s promise to extend provisions of his 2017 tax cuts would benefit the wealthiest taxpayers and add to the growing national debt that has surpassed $36 trillion.
Bennet accused Bessent of shedding “crocodile tears” over the debt and spending, while the Tax Cuts and Jobs Act drove up the debt. “There’s so many things I think you owe the American people after we have seen the catastrophe” from the tax cuts.
Bessent is a billionaire who, before becoming a Trump donor and adviser, donated to various Democratic causes in the early 2000s, including Al Gore’s presidential run. He also worked for George Soros, a major supporter of Democrats.
GOP Sen. Ron Johnson of Wisconsin also asked Bessent a series of questions about reducing national spending to pre-pandemic levels.
In his testimony, Bessent committed to maintaining the IRS’ Direct File program — which allows taxpayers to file their returns directly to the IRS for free — at least for the 2025 tax season, which begins Jan. 27. Republican lawmakers call the program a waste of money because free filing programs already exist, although they are not popular.
He also called for stronger sanctions on Russia, criticizing the Biden administration for a sanctions regime he said isn’t “muscular” enough. “I believe the previous administration was worried about raising 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 settling on Bessent as his nominee, also mulling over billionaire investor John Paulson and Howard Lutnick, whom Trump tapped as his nominee for commerce secretary.
The treasury secretary is responsible for serving as the president’s fiscal policy adviser and managing the public debt. He would also be a member of the president’s National Economic Council.
If confirmed, Bessent would oversee massive agencies within the Treasury Department, including the Internal Revenue Service. The IRS received a massive boost in funding from Democrats’ Inflation Reduction Act, though that money has been in constant threat of being cut.
Trump expects him to help reset the global trade order, enable trillions of dollars in tax cuts, ensure inflation stays in check, manage a ballooning national debt and still keep the financial markets confident.
“Productive investment that grows the economy must be prioritized over wasteful spending that drives inflation,” Bessent testified.
Senators were expected to question the money manager for hours on his views on cryptocurrency, the Trump-era tax cuts and potential conflicts of interest.
Sen. Elizabeth Warren, D-Mass., a member of the finance committee, sent Bessent more than 100 written questions in advance, interrogating him on such topics as agency independence, housing, treasury workforce issues and financial stability oversight.
In addition, Democrats on the Senate Finance Committee are circulating a document that alleges Bessent has avoided paying roughly $1 million in taxes related to his hedge fund. During the hearing, Bessent said he and his husband are up to date on their taxes, and he is in litigation over the portion of his taxes in controversy. He also committed to shuttering his firm if confirmed to be treasury secretary.
Bessent has backed extending provisions of the 2017 Tax Cuts and Jobs Act, which Trump signed into law in his first year in office. 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.
