Chairman Smith, Ranking Member Neal, and members of the committee, Secretary Scott Bessent expressed gratitude for the opportunity to speak before the House Ways and Means Committee. He emphasized the Treasury Department's commitment to collaborating with Congress to enhance national finances, create jobs, and strengthen the economy. This cooperation will focus on President Trump's budget and tax priorities.
Bessent highlighted recent successes in tax administration, noting a particularly effective tax filing season that improved efficiencies and reduced costs at the IRS. Contrary to critics' predictions of a 10% shortfall in receipts due to modernization efforts, April receipts increased by 9.5%, and May receipts rose by 14.7% compared to the previous year. The President managed these outcomes while cutting $2 billion in wasteful spending at the IRS.
The One Big Beautiful Bill Act is a significant proposal aiming to make permanent the 2017 tax cuts. It seeks to provide certainty for individuals and businesses while boosting economic momentum. The bill targets benefits for working and middle-class families, as well as American manufacturing.
According to the Council of Economic Advisers, this legislation could increase take-home pay for an average family of four by $7,800 to $13,300 and raise wages for workers by $6,100 to $11,600. Additionally, it proposes no taxes on tips or overtime and offers tax cuts for seniors.
The bill also aims to stimulate investment in U.S. manufacturing through incentives like 100% expensing for new factories and streamlined permitting processes. Bessent expressed appreciation for the committee's role in advancing this legislation through the House.
On trade matters, Bessent noted progress made in rebalancing global economic relations alongside advancements in tax policy. The recent US-UK trade deal exemplifies potential export opportunities worth $5 billion for American industries.
Bessent also addressed China's role in stabilizing its economy through consumption rather than excess production. He stressed that China must be a reliable partner in trade negotiations for a balanced economic relationship with the United States.
President Trump's policies have reportedly added over 500,000 private-sector jobs since January while inflation rates have slowed significantly due to decreased cost increases in essential areas like shelter, food, and energy.
In conclusion, Bessent credited President Trump's leadership with laying foundations for what he termed a "Golden Age economy," urging congressional support to build on this foundation for greater prosperity.
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