Should US Federal Minimum Wage Be Raised Above $7.25? Trump's Treasury Pick: 'No Sir'
The annual wages of a worker making federal minimum wage is $15,080
"Trump and his billionaire Cabinet have their priorities backwards. Instead of focusing on lower costs and higher wages, they're only trying to line their own pockets while breaking promises to working families," said one critic.
Scott Bessent, President-elect Donald Trump's nominee to be Treasury secretary, testifies during his Senate Finance Committee confirmation hearing in Washington, D.C. on Thursday, January 16, 2025.
(Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images)
Eloise Goldsmith
Jan 16, 2025
COMMON DREAMS
Scott Bessent, a hedge fund manager and U.S. President-elect Donald Trump's pick for treasury secretary, indicated during his confirmation hearing before the Senate Finance Committee Thursday that he has no issue with the federal minimum wage remaining at $7.25 an hour, the wage floor that's been in place since 2009.
The admission was prompted by Sen. Bernie Sanders (I-Vt.), who asked Bessent, "Will you work with those of us who want to raise the federal minimum wage to a living wage to take millions of Americans out of poverty?"
Bessent replied, "Senator, I believe that the minimum wage is more of a statewide and regional issue."
Sanders then pressed him, asking, "So you don't think we should change the federal minimum wage of $7.25 an hour?"
"No, sir," said Bessent, who owns assets worth at least $500 million, according to The Washington Post.
The annual wages of a worker making federal minimum wage is $15,080.
In response to these comments, Alex Floyd, the rapid response director at the Democratic National Committee, said in a statement: "Donald Trump and Scott Bessent will give tax handouts to billionaires but oppose raising wages for the poorest Americans. Trump and his billionaire Cabinet have their priorities backwards. Instead of focusing on lower costs and higher wages, they're only trying to line their own pockets while breaking promises to working families."
Bessent has laid out an economic plan known as "3-3-3," which involves reducing the federal budget deficit down to 3% of gross domestic product, getting real GDP growth to 3%, and producing an additional 3 million barrels of oil a day by 2028. The progressive policy institute the Center for American Progress reports that Bessent's 3-3-3 goal would likely require massive cuts of anti-poverty programs and middle-class tax increases to be achieved, taking into account other priorities Bessent has identified, such as his commitment to extend Trump's 2017 tax cuts that benefited high-income households.
In a statement published Thursday, the government watchdog Accountable.US denounced Bessent's defense of Trump's tax cuts—under which "the top 1% saw benefits nearly three times larger than families in the bottom 60%"—and of the president-elect's proposed tariffs, which economists warn could boost inflation.
"Scott Bessent's nomination isn't about helping American families," said the group. "It's about lining the pockets of the ultrawealthy and doubling down on policies that hurt the middle class."
Trump Treasury Pick's Economic Plan Would 'Require Massive Cuts to Anti-Poverty Programs': Analysis
Scott Bessent's "3-3-3" agenda "requires brutal cuts to health and nutrition and higher costs for families at the grocery store," said analysts at the Center for American Progress.
U.S. investor and hedge fund manager Scott Bessent delivers his opening statement during a Senate Finance Committee hearing on his nomination to be secretary of the treasury in Washington, D.C. on January 16, 2025.
(Photo: Andrew Caballero/Reynolds/AFP via Getty Images)
At The Washington Post, columnist Catherine Rampell wrote that "the magnitude of cuts required to make Bessent's arithmetic work is breathtaking."
"If you add up all the tax-cut promises Trump made during his campaign, the budget hole swells to almost $10 trillion," wrote Rampell. "To compensate, government programs would have to shrink by two-thirds. Alternatively, Trump could raise taxes on the middle class. Pick your poison."
On social media, government watchdog Accountable.US denounced Bessent's defense of Trump's tax cuts—under which "the top 1% saw benefits nearly three times larger than families in the bottom 60%"—and of the president-elect's proposed tariffs, which leading economists say would "reignite" inflation.
"Scott Bessent's nomination isn't about helping American families," said the group. "It's about lining the pockets of the ultra-wealthy and doubling down on policies that hurt the middle class."
Meanwhile, critics of Bessent on Thursday pointed to new reporting from Politico that Senate Democrats have accused the Treasury nominee of dodging $910,182 in Medicare taxesfor income he made through his hedge fund from 2021-23. A memo circulated by Democrats stated that Bessent argued that as a "limited partner" in his fund, he was not liable for taxes on certain income.
Sen. Ron Wyden (D-Ore.) addressed the memo at Bessent's hearing, saying: "Like a number of Wall Street fund managers, Mr. Bessent makes use of a tricky legal maneuver to opt out of paying into Medicare."
"The billionaire hedge fund manager Trump handpicked to oversee a massive tax giveaway for the ultra-wealthy doesn't pay his own taxes," said Lindsay Owens, executive director of Groundwork Collaborative. "It's almost too on the nose. The president-elect is stacking his cabinet with one goal in mind: more tax breaks for his billionaire boys club and major corporations."
Scott Bessent's "3-3-3" agenda "requires brutal cuts to health and nutrition and higher costs for families at the grocery store," said analysts at the Center for American Progress.
U.S. investor and hedge fund manager Scott Bessent delivers his opening statement during a Senate Finance Committee hearing on his nomination to be secretary of the treasury in Washington, D.C. on January 16, 2025.
(Photo: Andrew Caballero/Reynolds/AFP via Getty Images)
Julia Conley
Jan 16, 2025
COMMON DREAMS
At his confirmation hearing on Thursday, hedge fund manager and U.S. treasury secretary nominee Scott Bessent told the Senate Finance Committee that at the helm of the Treasury Department he would usher in an "economic golden age."
But a report by two policy analysts details how Bessent's signature "3-3-3" plan would only be achievable by gutting programs for some of the nation's most vulnerable households—extending the "golden age" only to wealthy people and corporations for whom the Trump administration plans to slash taxes.
At the Center for American Progress, senior director of economic policy Brendan Duke and senior director of federal budget policy Bobby Kogan completed "the accounting to determine what it would take to achieve" Bessent's 3-3-3 agenda, particularly his plan to cut the federal budget deficit down to 3% of the gross domestic product (GDP). The plan also calls for real GDP growth to reach 3% and the production of 3 million barrels of oil by 2028.
While reducing the budget deficit and simultaneously protecting programs American families rely on is a "laudable goal," wrote Duke and Kogan, Bessent has "explicitly stated that extending the expiring 2017 tax cuts is a priority, and he would likely rule out tax increases on the wealthy to pay for them"—suggesting that the Treasury nominee's 3-3-3 agenda would require new taxes on imported goods and "massive cuts to anti-poverty programs."
The Congressional Budget Office has projected that the budget deficit will represent 5.8% of the nation's GDP in 2028.
"The president-elect is stacking his cabinet with one goal in mind: more tax breaks for his billionaire boys club and major corporations."
With Bessent proposing an extension of the 2017 tax cuts—which are projected to grow the budget deficit by about $4 trillion over a decade—the elimination of Inflation Reduction Act energy investments, and a pause on nondefense discretionary spending increases, said Duke and Kogan, Bessent's plan would "actually increase the projected 2028 budget deficit from 5.8 to 6.0% of GDP, or $1 trillion above the 3% target.
Without any cuts to Medicare and Social Security—which Trump has said he would exempt from cuts—or defense spending, says the analysis, Bessent's deficit target would require both:A 20% tax on all imported goods and a 60% tax increase on imports from China, costing the average family between $2,200-$3,900, and
Cutting the federal budget by nearly $500 billion in 2028 alone, which couldn't be done without a 31% cut to spending including Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and veterans' compensation and pensions—on top of Bessent's 6% cut to nondefense discretionary spending.
"The combination of policies that would deliver the deficit reduction proposed in Bessent's 3-3-3 economic plan would raise taxes on low- and middle-income families and gut healthcare, nutrition assistance, and veterans' programs while still cutting taxes for the wealthy," wrote Duke and Kogan. "Such a plan would hike families' costs both because broad-based tariffs would increase prices and because Americans would have to pay more for healthcare and food due to cuts to federal programs that help lower the cost of living."
With families across the U.S. facing "brutal cuts to health and nutrition" and higher prices at the grocery store under Bessent's plan, said Duke, the wealthiest households would still get "a net tax cut."
Jan 16, 2025
COMMON DREAMS
At his confirmation hearing on Thursday, hedge fund manager and U.S. treasury secretary nominee Scott Bessent told the Senate Finance Committee that at the helm of the Treasury Department he would usher in an "economic golden age."
But a report by two policy analysts details how Bessent's signature "3-3-3" plan would only be achievable by gutting programs for some of the nation's most vulnerable households—extending the "golden age" only to wealthy people and corporations for whom the Trump administration plans to slash taxes.
At the Center for American Progress, senior director of economic policy Brendan Duke and senior director of federal budget policy Bobby Kogan completed "the accounting to determine what it would take to achieve" Bessent's 3-3-3 agenda, particularly his plan to cut the federal budget deficit down to 3% of the gross domestic product (GDP). The plan also calls for real GDP growth to reach 3% and the production of 3 million barrels of oil by 2028.
While reducing the budget deficit and simultaneously protecting programs American families rely on is a "laudable goal," wrote Duke and Kogan, Bessent has "explicitly stated that extending the expiring 2017 tax cuts is a priority, and he would likely rule out tax increases on the wealthy to pay for them"—suggesting that the Treasury nominee's 3-3-3 agenda would require new taxes on imported goods and "massive cuts to anti-poverty programs."
The Congressional Budget Office has projected that the budget deficit will represent 5.8% of the nation's GDP in 2028.
"The president-elect is stacking his cabinet with one goal in mind: more tax breaks for his billionaire boys club and major corporations."
With Bessent proposing an extension of the 2017 tax cuts—which are projected to grow the budget deficit by about $4 trillion over a decade—the elimination of Inflation Reduction Act energy investments, and a pause on nondefense discretionary spending increases, said Duke and Kogan, Bessent's plan would "actually increase the projected 2028 budget deficit from 5.8 to 6.0% of GDP, or $1 trillion above the 3% target.
Without any cuts to Medicare and Social Security—which Trump has said he would exempt from cuts—or defense spending, says the analysis, Bessent's deficit target would require both:A 20% tax on all imported goods and a 60% tax increase on imports from China, costing the average family between $2,200-$3,900, and
Cutting the federal budget by nearly $500 billion in 2028 alone, which couldn't be done without a 31% cut to spending including Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and veterans' compensation and pensions—on top of Bessent's 6% cut to nondefense discretionary spending.
"The combination of policies that would deliver the deficit reduction proposed in Bessent's 3-3-3 economic plan would raise taxes on low- and middle-income families and gut healthcare, nutrition assistance, and veterans' programs while still cutting taxes for the wealthy," wrote Duke and Kogan. "Such a plan would hike families' costs both because broad-based tariffs would increase prices and because Americans would have to pay more for healthcare and food due to cuts to federal programs that help lower the cost of living."
With families across the U.S. facing "brutal cuts to health and nutrition" and higher prices at the grocery store under Bessent's plan, said Duke, the wealthiest households would still get "a net tax cut."
At The Washington Post, columnist Catherine Rampell wrote that "the magnitude of cuts required to make Bessent's arithmetic work is breathtaking."
"If you add up all the tax-cut promises Trump made during his campaign, the budget hole swells to almost $10 trillion," wrote Rampell. "To compensate, government programs would have to shrink by two-thirds. Alternatively, Trump could raise taxes on the middle class. Pick your poison."
On social media, government watchdog Accountable.US denounced Bessent's defense of Trump's tax cuts—under which "the top 1% saw benefits nearly three times larger than families in the bottom 60%"—and of the president-elect's proposed tariffs, which leading economists say would "reignite" inflation.
"Scott Bessent's nomination isn't about helping American families," said the group. "It's about lining the pockets of the ultra-wealthy and doubling down on policies that hurt the middle class."
Meanwhile, critics of Bessent on Thursday pointed to new reporting from Politico that Senate Democrats have accused the Treasury nominee of dodging $910,182 in Medicare taxesfor income he made through his hedge fund from 2021-23. A memo circulated by Democrats stated that Bessent argued that as a "limited partner" in his fund, he was not liable for taxes on certain income.
Sen. Ron Wyden (D-Ore.) addressed the memo at Bessent's hearing, saying: "Like a number of Wall Street fund managers, Mr. Bessent makes use of a tricky legal maneuver to opt out of paying into Medicare."
"The billionaire hedge fund manager Trump handpicked to oversee a massive tax giveaway for the ultra-wealthy doesn't pay his own taxes," said Lindsay Owens, executive director of Groundwork Collaborative. "It's almost too on the nose. The president-elect is stacking his cabinet with one goal in mind: more tax breaks for his billionaire boys club and major corporations."
Little-Noticed Hearing Lays Bare GOP Push for 'Massive New Giveaway to the Ultra-Wealthy'
"American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
House Ways and Means Committee Chair Rep. Jason Smith (R-Mo.) speaks at a hearing on September 11, 2024.
(Photo: Bill Clark/CQ-Roll Call, Inc. via Getty Images)
Jake Johnson
Jan 15, 2025
"American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
House Ways and Means Committee Chair Rep. Jason Smith (R-Mo.) speaks at a hearing on September 11, 2024.
(Photo: Bill Clark/CQ-Roll Call, Inc. via Getty Images)
Jake Johnson
Jan 15, 2025
COMMON DREAMS
Republicans on the House's chief tax-writing committee made clear during a hearing Tuesday that their top priority is making permanent the massive giveaway to the rich that Donald Trump and the GOP pushed through in 2017.
Rep. Jason Smith (R-Mo.), chairman of the House Ways and Means Committee, said during his opening remarks at Tuesday's hearing that "we must make the Trump tax cuts permanent as soon as possible."
While most of the corporate tax breaks in the 2017 law were made permanent from the start, provisions impacting individuals—including the cut to the top marginal tax rate—are set to expire at the end of this year without congressional action. Trump and Republicans have also called for a further reduction of the statutory corporate tax rate.
"As of today, we have only 142 legislative days before taxes will go up for every single American if Congress fails to act," Smith declared Tuesday.
Smith characterized the 2017 tax cuts as a boon for ordinary Americans, but the law's benefits were heavily skewed to the wealthiest.
The same would be true of an extension of the individual tax cuts, which is expected to be part of a sprawling party-line reconciliation bill. The Institute on Taxation and Economic Policy noted in a recent analysis that "Trump's plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans."
"No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Rep. Richard Neal (D-Mass.), the top Democrat on the committee, said at Tuesday's hearing that "when Republicans inevitably tell you that the GOP tax scam gave everyone in America a tax break, remember this one contextualized fact: Extending the law gives people making over $1 million a year a $78,717 average tax cut—288 times higher than the $273 those earning under $50,000 would receive."
"Those millionaires won't feel the effects of cuts to Medicare or Medicaid, or higher premium costs, but America's working families sure will," Neal added, referring to the GOP's plan to slash key aid programs to help offset the enormous cost of extending the 2017 tax breaks.
Tuesday's committee hearing was overshadowed by the closely watched Senate questioning of Trump's nominee to lead the Pentagon, but it confirmed that Republicans intend to waste no time delivering another round of tax cuts to rich Americans who saw their wealth explode under the 2017 law.
"Last time Trump and the GOP held a trifecta, they moved fast to create new tax breaks rewarding wealthy corporations for moving jobs overseas and harming hard-working families across the country," David Kass, executive director of the progressive advocacy group Americans for Tax Fairness, said in a statement Tuesday. "Now, they're working to pass new tax breaks that will allow these same powerful corporations to evade paying their fair share and eliminate American jobs."
"The disastrous effects of the Trump tax scam are not theoretical—they're reality," Kass added. "It didn't raise wages for everyday people or protect our jobs and it certainly didn't pay for itself. Instead, it doubled billionaire wealth and added over $1.5 trillion to the deficit. No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Trump and the GOP's aggressive push for a new round of tax cuts received a boost from the deep-pocketed Koch network, which is pumping tens of millions of dollars into a nationwide campaign to build support for a proposal that would predominately reward a small sliver of the U.S. population.
"If asked to choose between healthcare and food for low-income kids or tax cuts for giant corporations, Chairman Jason Smith and the Republicans on the Ways and Means Committee are proving that ten times out of ten, they'll choose the corporate giants," said Tony Carrk, executive director of the watchdog group Accountable.US. "American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
Republicans on the House's chief tax-writing committee made clear during a hearing Tuesday that their top priority is making permanent the massive giveaway to the rich that Donald Trump and the GOP pushed through in 2017.
Rep. Jason Smith (R-Mo.), chairman of the House Ways and Means Committee, said during his opening remarks at Tuesday's hearing that "we must make the Trump tax cuts permanent as soon as possible."
While most of the corporate tax breaks in the 2017 law were made permanent from the start, provisions impacting individuals—including the cut to the top marginal tax rate—are set to expire at the end of this year without congressional action. Trump and Republicans have also called for a further reduction of the statutory corporate tax rate.
"As of today, we have only 142 legislative days before taxes will go up for every single American if Congress fails to act," Smith declared Tuesday.
Smith characterized the 2017 tax cuts as a boon for ordinary Americans, but the law's benefits were heavily skewed to the wealthiest.
The same would be true of an extension of the individual tax cuts, which is expected to be part of a sprawling party-line reconciliation bill. The Institute on Taxation and Economic Policy noted in a recent analysis that "Trump's plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans."
"No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Rep. Richard Neal (D-Mass.), the top Democrat on the committee, said at Tuesday's hearing that "when Republicans inevitably tell you that the GOP tax scam gave everyone in America a tax break, remember this one contextualized fact: Extending the law gives people making over $1 million a year a $78,717 average tax cut—288 times higher than the $273 those earning under $50,000 would receive."
"Those millionaires won't feel the effects of cuts to Medicare or Medicaid, or higher premium costs, but America's working families sure will," Neal added, referring to the GOP's plan to slash key aid programs to help offset the enormous cost of extending the 2017 tax breaks.
Tuesday's committee hearing was overshadowed by the closely watched Senate questioning of Trump's nominee to lead the Pentagon, but it confirmed that Republicans intend to waste no time delivering another round of tax cuts to rich Americans who saw their wealth explode under the 2017 law.
"Last time Trump and the GOP held a trifecta, they moved fast to create new tax breaks rewarding wealthy corporations for moving jobs overseas and harming hard-working families across the country," David Kass, executive director of the progressive advocacy group Americans for Tax Fairness, said in a statement Tuesday. "Now, they're working to pass new tax breaks that will allow these same powerful corporations to evade paying their fair share and eliminate American jobs."
"The disastrous effects of the Trump tax scam are not theoretical—they're reality," Kass added. "It didn't raise wages for everyday people or protect our jobs and it certainly didn't pay for itself. Instead, it doubled billionaire wealth and added over $1.5 trillion to the deficit. No amount of misinformation can hide the truth: This massive new giveaway to the ultra-wealthy and giant corporations comes at the expense of working and middle-class Americans."
Trump and the GOP's aggressive push for a new round of tax cuts received a boost from the deep-pocketed Koch network, which is pumping tens of millions of dollars into a nationwide campaign to build support for a proposal that would predominately reward a small sliver of the U.S. population.
"If asked to choose between healthcare and food for low-income kids or tax cuts for giant corporations, Chairman Jason Smith and the Republicans on the Ways and Means Committee are proving that ten times out of ten, they'll choose the corporate giants," said Tony Carrk, executive director of the watchdog group Accountable.US. "American families are set up to lose because President-elect Trump and his congressional allies are eager to raise our costs in order to help their wealthy donor friends."
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