Donald Trump’s nominee for treasury secretary Scott Bessent turned the tables on Senator Bernie Sanders when pressed over Joe Biden’s warning there’s an oligarchy taking shape in the U.S.
Bessent was appearing before the Senate Finance Committee on Thursday as he seeks to become the top economic official in the incoming Trump administration.
During the wide-ranging hearing, Bessent warned of U.S. is ‘barreling toward an economic crisis’ and largest tax increase in history at the end of the year and answered questions on a series of issues before coming face-to-face with the progressive senator.
Sanders wanted to know whether Bessent agreed with Biden’s warning that money and power is becoming more concentrated among a small few.
‘Today, an oligarchy is taking shape in America of extreme wealth, power, and influence that really threatens our entire democracy, our basic rights and freedom, and a fair shot for everyone to get ahead,’ Biden said in his farewell speech Wednesday night.
‘I agree with him,’ Sanders said during the hearing. ‘Do you?’
But the hedge fund manager and Trump’s treasury secretary nominee quickly deflected.
Bessent pointed out that the tech billionaires Sanders mentioned in his question, including Elon Musk, Jeff Bezos and Mark Zuckerberg, all made their billions themselves.
However, Sanders would not let it slide. The 83-year-old pushed back that he was not asking about how the men made their money.
‘What Biden said last night is “we’re moving toward an oligarchy.” I’m asking you that question,’ the senator fired back.
‘Do you think – forget how they made their money – do you think that when so few people have so much wealth and so much economic and political power, that that is an oligarchy form of society?’ Sanders questioned.
That’s when Bessent flipped the script – noting that Biden recently awarded some billionaires the nation’s highest highest civilian honor.
‘Well I would note that the President Biden gave the Presidential Medal of Freedom to two people who I think would qualify for his oligarchs,’ Bessent said.
Among those awarded were George Soros and David Rubenstein, both of whom are billionaires, though their net worths pale in comparison to some like Musk.
But despite Bessent turning the tables, Sanders was not done trying to get a straight answer out of him.
The lawmaker, who often rails against the super rich, said his question was ‘not a condemnation of any one individual’ but whether Bessent thinks a few people having concentrated wealth and power is an ‘oligarchic form of society.’
‘Senator, I think it depends on the ability to move up and down the income,’ Bessent said before Sanders cut him off.
‘No, that’s not really the answer,’ Sanders shot back before moving on to another question.
Sanders went on to ask Bessent about raising the federal minimum wage, which Bessent answered much more directly.
Biden, Sanders and Democrats have been trying to raise the minimum wage since the president took office in 2021 but have come up short.
The last time the federal minimum wage was increased was in 2009. It currently stands at $7.25 an hour.
Treasury Secretary Janet Yellen has defended Biden’s calls for the federal minimum wage to be increased, but Bessent said during the hearing he does not support raising it.
‘I believe that the minimum wage is more of a statewide and regional issue,’ Bessent told the Vermont senator.
Trump said in December he would ‘consider’ raising the minimum wage but would not to speak with governors after he dodged answering the question directly on the campaign trail, and Republicans in Congress have largely rejected the move.
When it comes to economic policy, the incoming Trump administration and GOP lawmakers are more focused on the looming expiration of provisions in the 2017 tax law.
If lawmakers do not act, components of the signature law from Trump’s first term will expire at the end of the year resulting in a massive tax hike.
During his confirmation hearing, Bessent issued a start warning over not extending the law.
‘If we do not renew and extend, then we will be facing an economic calamity, and as always with financial instability, that falls on the middle and working class people,’ Bessent told lawmakers.
But with such a slim majority in Congress, Republicans have little room for error in passing legislation as Democrats have slammed the 2017 law as one that largely benefitted the wealthy.
Remarks by senators on both sides of the aisle during the hearing were a preview of the likely messaging on the issue in the months to come.
Republicans warned of more than $4 trillion in tax increases if the law is not extended; Democrats framed it as trillions in tax cuts for the wealthy.
‘The distribution of it was deeply, deeply, deeply unfair,’ Senator Michael Bennet (D-Colo.) said in the hearing of the 2017 law.
‘What are you doing with the money Mr. Bessent?’ Bennet asked. He accused Republicans of giving it to the richest people.
Bennet argued the 2017 tax law cost $2 trillion while the children of working people borne the cost and will cost $4.6 trillion this go-round.
‘Can’t we think of a better idea in the halls here than cutting taxes for the wealthiest people and expecting that it will trickle down to everybody else when we have the profound needs that you have talked about?’ Bennet implored Bessent passionately.
‘I would respectfully disagree with much of your categorization in terms of the benefits accruing to the richest Americans,’ Bessent responded.
While Democrats and Republicans are gearing up for a major fight over taxes on the hill, there were areas where Trump and Bessent might align with progressives moving forward.
Sanders told Bessent he backs Trump saying he wants to cap credit card interest rates. The nominee said if confirmed, he would follow the president-elect on that.
Senator Elizabeth Warren (D-Mass.) also told Bessent she supports Trump’s call to eliminate the debt ceiling.
He responded that if Trump wants to eliminate the debt ceiling as president, he will work with her on it.