Preventing the expiration of tax cuts enacted in Donald Trump’s first term is the single most important issue facing lawmakers, Scott Bessent told a Senate panel on Thursday.
Bessent, Trump’s pick to head the U.S. Treasury Department, testified on Thursday before the Senate Finance Committee for several hours, tackling questions about tariffs, Russia sanctions, energy policy, the debt ceiling, and taxes.
Failing to extend the tax cuts, some of which are currently scheduled to expire at the end of this year, would be an “economic calamity,” Bessent said. “Americans are barreling toward an economic crisis at year-end.”
The sunsetting of personal income tax cuts as well as some deductions created by the Tax Cuts and Jobs Act would amount to a $4 trillion tax increase, most of which would fall on families and small businesses earning less than $400,000.
“This is the single most important issue of the day,” Bessent said.
He went on to describe the tax issue as a “pass-fail” exam for Congress.
Pushed by Democrat lawmakers about whether he would support tax increases for those earning more than $400,000, Bessent said he would not because it would capture a lot of small businesses and “job creators.”
Bessent said that the expectations that the Trump tax cuts would be extended has boosted optimism among consumers and small small businesses.
“Everyone wins with permanency, certainty,” he said.
