Treasury Secretary Scott Bessent warned on Fox News Tuesday that inaction from Congress on economic reform could lead to what he called the “ultimate calamity.”
Speaking with Fox News host Bret Baier, Bessent said that while he identifies as a deficit hawk, a balanced strategy must include both disciplined spending cuts and policies that promote long-term economic expansion. Bessent warned against overly aggressive spending cuts, warning that such moves could stall economic momentum.
“There are two parts here. And when I look in the mirror in the morning, I see a deficit hawk. So I’m very sympathetic to some of the senators who want to do more now. But, again, we did not get here in one year. We can’t solve this in a year. We are going to land this plane well for the economy, for the American people,” Bessent said.
The greater danger, Bessent said, would be congressional gridlock that triggers automatic tax hikes.
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“That is going to be done through a combination of restraining and cutting spending and growing the economy, because two big a cut and the economy would slow down. So nobody wants that. And then, of course, the ultimate calamity, Bret, would be for nothing to happen and for us to have the biggest tax increase in U.S. history, which would kill growth and balloon the deficit even beyond the Biden years,” Bessent added.
Bessent warned earlier in May that Republicans must act quickly to pass the president’s tax and spending bill, as Congress faces a mid-July deadline to raise the debt ceiling and avoid defaulting on $37 trillion in obligations. While both chambers are tying the debt limit hike to the package, Senate Republicans are pushing to revise House provisions on state and local tax caps, green energy tax breaks, and expiring tax cuts.
(Featured Image Media Credit: Screenshot/Fox News)
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