Candidate for U.S. Treasury chief predicts record tax hikes

TheUnited States could face the largest $4 trillion tax hike in history, requiring urgent action from Congress, Scott Bessent, a candidate for U.S. Treasury chief, said Jan. 16.

"If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion increase," he said at a Senate hearing that was broadcast on the Associated Press' YouTube channel.

Bessent said the current federal government has serious spending problems, which has led to an average budget deficit of 7 percent of GDP over the past four years.

The secretary of state nominee called current spending of 24-25% of GDP unprecedented for peacetime. He characterized the state of U.S. fiscal policy as "out of control."

In addition, Bessent urged the U.S. should maintain the dollar's status as the world's reserve currency and use sanctions cautiously - as part of an approach to protecting national security.

Earlier, on January 14, The Wall Street Journal reported that Trump will sign executive orders aimed at supporting the oil and gas industry after his inauguration. In particular, he is expected to begin lifting restrictions on offshore drilling and create a council to lead and oversee the country's policy in the directions of oil, gas and electricity.

Prior to that, on January 12, future US Vice President James David Vance said that Trump would inherit an economic disaster after current US leader Joe Biden.