During his confirmation hearing before the Senate Finance Committee, Scott Bessent, President-elect Donald Trump's nominee for Treasury Secretary, emphasized the critical importance of extending the 2017 Tax Cuts and Jobs Act. Bessent highlighted that failing to renew this extension could have severe consequences for the middle class.
Describing it as the most significant economic issue of the day, Bessent warned that the country could face an economic calamity if the tax cuts are not extended. He stressed that the burden of financial instability would disproportionately impact the middle and working class.
Bessent pointed out that allowing the tax cuts to expire would result in a substantial tax increase for the middle class, characterizing it as a 'gigantic' hike. The 2017 Tax Cuts and Jobs Act, signed by President Trump during his first term, included reforms that are set to sunset in 2025.
Advocacy groups like Americans for Prosperity have raised concerns about the potential impact on millions of Americans if the tax cuts are not renewed. They estimate that individuals could face tax increases of $1,500 or more next year if the extensions are not implemented.
