Washington: US Treasury Secretary Scott Bessent on Thursday vigorously defended President Donald Trump’s economic agenda during a contentious House Ways and Means Committee hearing, rejecting Democratic criticism over inflation, tariffs and the administration’s handling of the economy.
Appearing before the committee to discuss the administration’s 2027 budget, Bessent argued that Trump’s tax, trade and deregulation policies were delivering benefits to working Americans, while Democrats repeatedly challenged his claims and pointed to rising costs faced by households.
“Today his policies are driving lower taxes, bigger paychecks, and broader prosperity,” Bessent said in his opening testimony.
The hearing quickly exposed sharp partisan divisions over the state of the US economy.
Committee Chairman Jason Smith praised what Republicans call the “working families tax cuts”, saying tax refunds totalled nearly USD 325 billion this filing season and that more than 62 million Americans claimed at least one of Trump’s signature tax relief measures.
Bessent said approximately “USD 325 billion” in tax relief was delivered this filing season and that the average refund increased by more than 11 per cent.
According to the Treasury Secretary, “approximately 62 million filers” claimed at least one of the administration’s priorities, including no tax on tips, no tax on overtime, deductions for auto loan interest and relief for seniors.
He told lawmakers that “just over 70 percent” of those receiving tax cuts earned less than USD 100,000 annually.
Democrats, however, painted a very different picture.
Ranking Member Richard E. Neal argued that Americans were facing rising costs and weakening economic conditions despite administration promises.
“Workers and families are being forced to stretch their dollars further every day,” Neal said.
Several Democratic lawmakers linked higher prices to tariffs and the conflict involving Iran, citing increases in fuel, grocery and household costs.
Representative Judy Chu said gas prices had risen sharply and argued that lower-income households were bearing the burden of inflation.
Bessent rejected those characterisations.
“We have had real wage increases every month since President Trump took office, except for the month of April,” he said.
He also maintained that inflation pressures linked to energy markets would ease.
“We are experiencing a short-term elevation of prices due to the Iran conflict that will come down,” Bessent told lawmakers.
The Treasury Secretary repeatedly highlighted what he described as improvements in economic fundamentals, including manufacturing investment, job creation and private-sector growth.
“The economy is very strong,” he said. “We are creating jobs. And importantly, Congressman, these are jobs for Americans.”
Democratic lawmakers pressed Bessent on the matter, while the Treasury Secretary repeatedly declined to comment, citing ongoing litigation and Justice Department guidance.
At one point, exchanges became heated, with members talking over one another and accusing political opponents of distorting economic facts.
Beyond domestic issues, Bessent addressed international tax matters, saying the administration was pushing back against digital services taxes imposed by foreign governments.
“We are pushing back on these digital service taxes,” he said. “They cannot take advantage of our companies.”
The hearing came as the Trump administration continues to promote its economic agenda ahead of budget negotiations and amid ongoing debate in Washington over inflation, trade policy, federal spending and economic growth.
(IANS)
