Scott Bessent told a Senate committee Thursday that preventing tax cuts enacted during President Donald Trump's first term from expiring is a top priority for lawmakers.
Bessent, who was nominated by President Trump to head the U.S. Treasury, testified for several hours Thursday before the Senate Finance Committee, addressing questions about tariffs, Russia sanctions, energy policy, the debt ceiling and taxes.
Bessent said some of the tax breaks are currently set to expire at the end of this year, but failing to extend them would be an “economic disaster.” “Americans are bracing for an economic crisis at the end of the year.”
Repealing some of the deductions created by the Personal Income Tax Cuts and Jobs Act would amount to $4 trillion in increased taxes, with the bulk of it falling on households and small businesses earning less than $400,000. Become.
“This is the most important issue of today,” Bessent said.
He went on to say that tax issues are a “pass or fail” test for Congress.
Pressed by Democratic lawmakers on whether he would support raising taxes on people making more than $400,000 a year, Bessent said he would not because it would take in many small businesses and “job creators.”
Bessent said expectations that President Trump's tax cuts will be extended are increasing optimism among consumers and small businesses.
“Everyone wins permanently and securely,” he said.
