Scott Bessent Champions Trump's BBB & Economic Vision
Bessent dismissed criticisms from the Yale Budget Lab, which claimed the tax cuts would disproportionately favor the wealthy, noting their findings were skewed by former Biden administration.
Treasury Secretary Scott Bessent appeared on State of the Union with Dana Bash to discuss President Trump’s newly enacted economic legislation, dubbed the "big, beautiful bill," and the administration’s aggressive tariff strategy. Bessent passionately defended the bill’s benefits for the middle and working classes, while outlining a bold approach to global trade that prioritizes American prosperity.
Bessent dismissed criticisms from the Yale Budget Lab, which claimed the tax cuts would disproportionately favor the wealthy, noting their findings were skewed by former Biden administration affiliations. “I think we can discount everything they say,” he asserted, urging viewers to examine the organization’s composition. Instead, he emphasized the bill’s focus on middle-class relief, stating, “What we have here is a middle-class and working-class bill that we are going to see wages accelerate.” He highlighted that the legislation makes permanent tax cuts from Trump’s first term, which increased the tax share paid by the top 10% of earners from 37% to 45%. “So permanently the highest 10% will pay a higher percent of the taxes,” Bessent noted.
Addressing concerns about affordability, Bessent underscored the bill’s provisions, such as tax cuts on tips, as part of Trump’s agenda for “parallel prosperity.” He explained, “Wall Street has done great. Now it’s time for working Americans to do great.” On Medicaid, he clarified that funding would rise by 20% over the next decade, refuting claims of cuts. “Only in DC is a 20% hike over ten years a cut,” he quipped. Bessent also defended work requirements for able-bodied Medicaid recipients, arguing they align with public support and empower individuals. “I don’t think poor people are stupid. I think they have agency,” he said, rejecting Democratic criticisms as alarmist.
On tariffs, with a deadline looming for over 100 countries to negotiate trade deals, Bessent outlined a high-pressure strategy. He revealed that Trump would send letters to trading partners, warning that failure to reach agreements by August 1st would reinstate April 2nd tariff levels. “The playbook is to apply maximum pressure,” he stated, citing the EU’s swift response to Trump’s 50% tariff threat as evidence of its effectiveness. Bessent remained optimistic about securing deals, noting, “I would expect to see several big announcements over the next couple of days.”
Responding to small business owners’ concerns about tariff uncertainty, Bessent highlighted the bill’s tax certainty, including 100% expensing for new plant and equipment. “They now have great certainty on taxes,” he said, emphasizing that the administration is addressing the 18 key trading relationships that account for 95% of the U.S. trade deficit.
Bessent’s vision aligns with Trump’s goal of revitalizing American manufacturing and boosting working-class wages. “We are bringing back manufacturing jobs. We are bringing back working-class jobs,” he declared, pointing to early wage increases driven by border security measures. His confident defense of the administration’s policies positions the bill and tariff strategy as cornerstones of a prosperous future for American workers.