Treasury Sec. Bessent Admits Economy is Weakening, Scrambles to Mislead Americans About the GOP’s Tax Plans

As warning signs flash across the Trump economy, Treasury Secretary Scott Bessent appeared on CNBC’s Squawk Box today to mislead Americans about Trump’s unpopular economic agenda and the GOP’s billionaire tax breaks.

But even Bessent couldn’t fully deny the cascade of worrying economic data, admitting that the economy could be “starting to roll a little bit.”

With poll after poll showing Americans are souring on Trump’s economy, it’s no surprise Bessent and the president are scrambling to spread their own false narratives.

Bessent’s Lies on the GOP’s Tax Plan:

CLAIM: “If we make the current tax regime permanent, then we will grow.”

FACT: The 2017 Trump tax law did not create an economic boom and spurred little – if any – growth in GDP. The pass-through income deduction, which expires at the end of the year, didn’t produce any increases in wages, jobs, or business investment. Instead, it gave 82 ultra-wealthy households $1 billion in total savings in the first year alone. In addition, making expiring individual TCJA provisions permanent without paying for them will cause the economy to shrink over the long term, according to a non-partisan December 2024 analysis.

CLAIM: “I don’t know if [Medicaid] has to be a cut.”

FACT: Under the House’s budget resolution, it is impossible for Republicans to pass nearly $5 trillion in billionaire tax breaks without touching Medicaid or Medicare. Even if Republicans completely defunded all other programs within the jurisdiction of the House Energy and Commerce Committee, that would only save $135 billion – a far cry from the $880 billion minimum they’re required to cut. In other words, in order to pass their disastrous tax plan, Republicans will have to kick millions of Americans off of their health care.

Bessent’s Lies on Trump’s Economy:

CLAIM: “Everything else the administration is doing, we’re not getting much credit…mortgage [rates] are down.”

FACT: Mortgage rates are falling because of current economic weakness and anticipated further decline (or deterioration) caused by the Trump Administration’s misguided and chaotic approach to the economy. Rates are still well above the level they were before the Federal Reserve hiked interest rates in early 2022, and the Administration is doing nothing to make housing cheaper for American families.

CLAIM: “There’s nothing, nothing I’m going to do to hurt the collections [at the IRS].”

FACT: The Trump Administration has fired 7,000 IRS employees so far, and reports indicate they are steamrolling ahead with plans to cut the agency’s 90,000 person workforce in half. These reductions will give wealthy tax cheats a free pass and lead to delays for everyday taxpayers. Further, during Trump’s first term, the White House budget office supported cutting billions in IRS funding, and GOP lawmakers have continued to claw back IRS enforcement funding in recent months.

CLAIM: “We will grow if we deregulate as we’re planning to do.”

FACT: Deregulation does not lead to economic growth and harms families as it strips vital worker safety, consumer, and environmental protections. Federal regulations provide a net benefit of $100 billion a year – with the average benefit of major regulations being about 7 times the cost.

Email press@groundworkcollaborative.org to speak with a Groundwork expert about the tax debate and the Trump Administration’s handling of the economy.