Palmetto State News

U.S. Senator Tim Scott (R-S.C.), a member of the Senate Finance Committee, engaged in a confirmation hearing with Scott Bessent, President-elect Trump's nominee for U.S. Treasury Secretary. During the session, they covered topics such as the stability of the banking industry, Opportunity Zones, and the 2017 Tax Cuts and Jobs Act (TCJA).

Senator Scott raised concerns about the American banking system's stability, referencing recent bank failures like Silicon Valley Bank. He emphasized his role as chairman of the Banking Committee and asked Mr. Bessent for his assessment of the current safety and soundness of U.S. banks. "One of the things I think about as the right thing… is having some stability in our financial system," said Senator Scott.

On Opportunity Zones, Senator Scott highlighted their bipartisan origins and significant impact on distressed communities. He noted that $84 billion has been invested in these zones, resulting in benefits like affordable housing development with minimal gentrification. He expressed hope that future administrations would continue to support Opportunity Zones: “I hope that the administration will spend some time encouraging and supporting the next iteration of Opportunity Zones.”

Discussing the TCJA, Senator Scott pointed out changes in tax burdens post-legislation. He stated that while wealthier Americans saw an increase in their tax burden percentage-wise, poorer Americans experienced a decrease. He illustrated this with an example: "A single mother – like the one who raised me – in 2017 made on average $40,000 a year. Her tax burden… her tax rate went down by 71 percent."