WASHINGTON — Scott Bessent, the nominee for U.S. Treasury Secretary, encountered a barrage of inquiries from both Democratic and Republican members of the Senate Finance Committee during his confirmation hearing on Thursday. Topics discussed included tax policy, tariffs, relations with China, sanctions against Russia, and the future of the IRS tax filing system which some Republicans wish to abolish.
In response to challenging questions, Bessent defended President Donald Trump’s economic strategies and outlined his concerns about the potential economic crises that could arise if Congress fails to renew key elements of Trump’s Tax Cuts and Jobs Act. He insisted on the necessity of the Federal Reserve’s independence from presidential pressures and advocated for more stringent sanctions on Russian oil imports.
Bessent was introduced by fellow South Carolinian, Republican Senator Lindsey Graham, who emphasized the need for a treasury secretary with competence, trustworthiness, and patriotism, asserting that Bessent meets these criteria.
However, Democrats on the committee, including Senators Ron Wyden and Michael Bennet, expressed dissatisfaction over Trump’s pledge to extend tax cuts that they claim predominantly favor high-income earners while exacerbating the national debt, which has now surpassed $36 trillion. Bennet criticized Bessent for expressing concern about the debt while neglecting the significant implications of the tax cuts on national finances.
A billionaire, Bessent’s past includes notable contributions to Democratic initiatives, including support for Al Gore’s presidential campaign, prior to his alignment with Trump. Additionally, he was formerly associated with George Soros, a prominent Democratic benefactor.
During the hearing, Senator Ron Johnson of Wisconsin sought Bessent’s perspective on reducing national spending to pre-COVID-19 levels. Bessent committed to preserving the IRS’s Direct File program, which enables taxpayers to submit their returns directly at no cost, at least until the 2025 tax season. Republican senators challenged the program, arguing that existing free filing options are underused and redundant.
On the subject of international relations, Bessent emphasized the necessity for bolstered sanctions against Russia, stating that the current measures from the Biden administration lack the intensity required. He suggested that the previous administration may have hesitated to raise U.S. energy prices during electoral cycles.
Bessent was among the several candidates considered by Trump for the treasury position, following a careful deliberation process that also included other billionaires such as John Paulson and Howard Lutnick.
The treasury secretary plays a critical role in advising the president on fiscal policy and managing the public debt, in addition to sitting on the National Economic Council. If confirmed, Bessent will oversee substantial entities within the Treasury Department, including the IRS, which recently received significant funding through the Inflation Reduction Act, although there is ongoing discourse regarding potential budget cuts.
Trump anticipates Bessent’s assistance in reshaping the global trade landscape, facilitating extensive tax reductions, controlling inflation, and managing the increasing national debt while maintaining market confidence. Bessent stated, “Prioritizing productive investment to spur economic growth must take precedence over excessive spending that fuels inflation.”
Senators engaged Bessent for over three hours, scrutinizing his opinions on tax cuts from the Trump era, tariffs, relations with China, and possible conflicts of interest. Senator Elizabeth Warren from Massachusetts notably submitted over 100 written questions beforehand, covering diverse topics like agency autonomy and financial stability.
Democrats on the Senate Finance Committee reminded attendees of allegations that Bessent had evaded around $1 million in taxes linked to his hedge fund. During the hearing, he asserted that he is current on his tax obligations and is contesting the disputed portion. He further pledged to close his hedge fund if his nomination is confirmed.
Bessent supports the extension of the 2017 Tax Cuts and Jobs Act provisions signed by Trump, with estimates of tax cut costs ranging from approximately $6 trillion to $10 trillion over a decade. He advocates for spending reductions and tax adjustments to counterbalance the additional federal deficit resulting from prolonging these tax cuts.