Brad Schneider Brings The Receipts During Tirade Against Secretary Bessent Over Comments On Tariffs

Forbes Breaking News

During a House Ways and Means Committee hearing on Wednesday, Rep. Brad Schneider (D-IL) questioned Treasury Secretary Scott Bessent about his comments on tariffs.

Transcript

00:00Thank you, Mr. Chairman.

00:01Mr. Secretary, you come to this historic committee with both the honor and the responsibility

00:06to uphold the proud legacy of your predecessors, starting with Alexander Hamilton.

00:10As Mr. Neal earlier noted, it's a fair expectation that when you come here, you don't, quote,

00:16fudge the numbers.

00:17Mr. Secretary, I'm disappointed that so much of what you have said today has stretched

00:21the truth, ignored the facts, and avoided directly answering our questions.

00:26But that really shouldn't surprise anyone, as in your relatively short tenure, Secretary,

00:31you've established quite a record of dissembling, deflecting, and too many times just simply

00:36highlighting.

00:37I'm going to highlight just a few.

00:39On June 1st, on Face the Nation, you said, thus far, there have been no price increases

00:42because of the Trump tariffs.

00:45Simply not true.

00:46In fact, many companies have expressly stated that they've been forced to raise prices,

00:51and others expect to do so.

00:52All the companies have noticed this in their, as required by law, reports to their investors.

00:57I ask unanimous consent to submit to the record an article published by CNBC titled, Here Are

01:03the Retailers Raising Prices as Trump Tariffs Take Hold.

01:06Without a justification.

01:08Congressmen, I would point out that inflation today was 0.1 percent.

01:11This is my time.

01:12Mr. Secretary, this is my time.

01:13Costco has said it's increased prices because of tariffs for bananas, for pineapples, for flowers.

01:17Best Buy has raised prices, and those changes took effect in May.

01:21Mark Ninja has raised prices for coffee machines.

01:23Newell Brands.

01:24Graco has said it has raised prices on baby gear by 20 percent.

01:27I ask unanimous consent to submit the entire May issue of Musical Merchandise Review, the

01:33cover titled, How Tariffs Are Already Impacting and Will Continue to Threaten the Music Industry,

01:38just as an example.

01:39I also had a constituent visiting this morning who manufactures here in the United States with

01:44U.S. employees using U.S.-produced aluminum, selling to U.S. consumers.

01:49He shared with me that the price of aluminum, what's known as the Midwest Premium, rose 30

01:54cents a pound after President doubled the tariffs on aluminum.

01:58Reuters reported on June 9th that the Midwest Premium hit a record 62.5 cents per pound, and

02:04that since Mr. Trump was elected, the price has risen nearly 190 percent.

02:10Another example, on May 18th, you said gasoline prices have collapsed under President Trump.

02:14According to AAA, when President Trump took office in January, the average price per gallon

02:18was $3.23.

02:20Prices have gone up and down.

02:22The last month, the Bureau of Transportation Statistics said that prices were actually higher.

02:27This week, AAA has the average current price at $3.12.

02:32None of this reflects a collapse in prices.

02:34And on March 7th, you said, there's nothing, nothing I'm going to do to hurt collections at

02:38the IRS.

02:39Yet immediately after the end of this year's tax season, an internal IRS memo indicated you

02:44intend to cut 40 percent of the IRS workforce.

02:47You stated that the systems at the IRS are grossly outdated.

02:51Your predecessor, Charles Reddick, sat in that chair.

02:55He was appointed by President Trump, and he testified that we have a potentially $1 trillion

03:00annual tax gap.

03:01He said then, and I believe now, that better systems and more people working in compliance

03:07will help close that tax gap.

03:09And yet, yet you are trying to stop the investments in new technology and cutting 40 percent of

03:14the workforce.

03:15Mr. Secretary, I frankly wonder if we and the American people should believe anything

03:19you say.

03:20But let me shift topics.

03:21Is there a question, sir?

03:22Mr. Secretary, I am sure you saw the World Bank's forecast released yesterday that economic

03:26growth in the United States this year will drop by half as a result of the President's

03:31tariff policies.

03:33It also lowered its forecast for global economic growth because of Mr. Trump's tariffs.

03:39And warned that if they increase further, the slowdown will be even more severe.

03:43I ask unanimous consent to insert into the record an article from the Wall Street Journal entitled,

03:48World Bank Sees U.S. Growth Rate Halving as Tariffs Slow Global Economy.

03:52Without objection, if so ordered.

03:54So, let me now turn to investment in the U.S.

03:56Mr. Secretary, the U.S. is the world's first choice for foreign direct investment, or FDI.

04:01Yes or no, is it good that foreign companies and foreign investors want to invest in the

04:05U.S.?

04:06Always.

04:07FDI has grown every year since at least 2018.

04:10Mr. Secretary, is it good or bad to see that FDI grow in the U.S. economy?

04:15Good.

04:16More than 8 million American workers work for companies with foreign ownership.

04:19Mr. Secretary, isn't part of what President Trump and you are trying to do is provide

04:23incentives for foreign companies to bring jobs back to the U.S.?

04:27We're providing all companies bring jobs back to the U.S.

04:30Great.

04:31So, now let's discuss Section 899, which my Republican colleagues passed in this House.

04:36It's a new set of taxes applying punitive taxes on investors, on individuals, and on

04:40companies that are domiciled in countries that levy unfair foreign taxes.

04:44They include many of our allies, members of the European Union, the U.K., Australia, Canada,

04:49and others.

04:50Major investors and employers agree that if this revenge tax is implemented, employers will

04:55pull back on investment in their operations of the U.S.

04:58Indeed, the Joint Committee on Taxation's revenue estimate confirms this.

05:02Later in the budget window, the provision begins to lose revenue.

05:05Mr. Secretary, this runs counter to yours and the President's stated goal of driving

05:10investment in the U.S.

05:11We should be welcoming foreign direct investment, trying to give incentives for it to come here,

05:15not creating barriers.

05:16Congressman, we should not welcome foreign countries taking U.S.

05:20companies tax revenue for their own treasuries.

05:23But you are punishing the companies and the individuals who want to invest in the United

05:27States, lowering investment in the United States, hurting American jobs, hurting American

05:31innovation, hurting the future for American workers.

05:33That is a mischaracterization.

05:35Mr. President.

05:36Mr. President.

05:37Mr. President.

05:38Mr. President.

05:39Mr. President.

05:40Mr. President.

05:41Mr. President.

05:42Mr. President.

05:43Mr. President.

05:44Mr. President.

05:45Mr. President.

05:46Mr. President.

05:47Mr. President.

05:48Mr. President.

05:49Mr. President.

05:50Mr. President.

05:51Mr. President.

05:52Mr. President.

05:53Mr. President.

05:54Mr. President.

05:55Mr. President.

05:56Mr. President.

05:58Mr. President.

05:59Mr. President.

06:00Mr. President.

06:01Mr. President.

Category

Transcript

Recommended