Scott Bessent, Trump's pick to lead the Treasury, said extending the 2017 Tax Cuts and Jobs Act is the ‘single most important economic issue of the day.’ (Vincent Alban/Bloomberg via Getty Images)
"If we do not renew an extension, then we will be facing an economic calamity," Bessent said. "And, as always, with financial instability, that falls on the middle and working class."
Bessent cautioned that a "gigantic" middle-class tax increase would occur if the tax cuts expire.
Many of the reforms included in the 2017 Tax Cuts and Jobs Act are scheduled to end in 2025. Groups like Americans for Prosperity, a grassroots network founded by the billionaire Koch Brothers, claim that millions of Americans will face a hike of more than $1,500 in taxes in 2026 if the cuts are not renewed.
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The Senate is expected to confirm President Donald Trump's pick to lead the Treasury Department, Scott Bessent, on Jan. 27, 2025. (Kevin Lamarque/Reuters/File Photo)
"Today, I believe that President Trump has a generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans," Bessent said at his confirmation hearing.
Trump’s economic plan includes extending the 2017 tax cuts and imposing tariffs ranging from 10% to 20% on all imported goods. For countries like China, that number could go up to 60%.
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Bessent, who previously wrote an op-ed for Fox News Digital supporting the use of tariffs, backed the Trump administration's employment of tariffs in multiple exchanges with lawmakers during his confirmation hearing.
The Treasury Department is responsible for managing federal finances and oversees agencies that include the IRS.
Diana Stancy is a politics reporter with Fox News Digital covering the White House.
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