Scott Bessent Says Failing To Pass Trump’s Tax Bill Could Set Off A Financial Crisis Not Seen Since 2008

Treasury Secretary Scott Bessent warned that failure to pass President Donald Trump’s tax bill could result in a financial crisis that has not been seen since the one in 2008.

In a testimony before the House of Representatives Ways and Means Committee, Bessent touched upon the importance of passing Trump’s proposed tax bill.

Responding to a question about the possibility of Trump’s ‘Big, Beautiful Bill’ not passing the vote in the Senate, Bessent said it could result in “a financial crisis the likes of which we have not seen” since 2008.

When asked about the bill resulting in a potential deficit increase of $2.4 trillion over the next decade, Bessent said the Trump administration’s proposal would result in “smart spending,” without going into further details.

The Treasury Secretary also sought to downplay questions about criticism of the bill from Tesla Inc. CEO and former lead of the Department of Government Efficiency, Elon Musk.

When asked if Musk is right or wrong about the bill, Bessent said, “You’ll have to ask Mr. Musk.”

Bessent did not elaborate on the impact of the Trump tax bill on the U.S. debt limit, but said, “it remains to be seen.”

President Trump warned in a post on Truth Social last week that if his tax bill fails to pass, it will result in a 68% tax increase. He said this while calling out Musk for “turning against” him.

Meanwhile, U.S. equity markets edged up due to positive news on the trade deal front as well as favorable inflation print.

The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.18% at the time of writing.

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Also See: Elon Musk Says He Regrets Posts Calling Out Trump: ‘They Went Too Far’

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