On January 27, the Senate voted to confirm the nomination of Scott Bessent as the 79th Secretary of the Treasury. The vote was 68 to 29. Sixteen Democrats joined with the Republicans to approve the nomination.
Bessent will initially focus on winning Congressional approval of President Trump’s tax agenda, including extension (or making permanent) the expiring individual and estate tax rules (including the section 199A deduction for qualifying noncorporate business income); and such new tax breaks as tax-free tip, Social Security, and overtime income. He will also be the Administration point person on the issue of raising or suspending the debt limit.
Prospects: Bessent, a hedge fund manager prior to becoming Treasury Secretary, is viewed as friendly to cryptocurrency issues as well as a stalwart champion of the Trump economic agenda. Bessent is expected to be supported by a formidable tax policy team. Nominations and/or appointments to that team include former Joint Committee on Tax (JCT) head Ken Kies (who in the private sector has represented numerous life insurance interests), former tax policy staffer for the Speaker of the House (Rep. Mike Johnson (R-LA)) Derek Theurer, and former JCT counsel Drew Lyon. Bessent is expected to be an effective and influential player in the debate over the emerging tax bill.