During a recent segment covered by The Majority Report with Sam Seder, Fox News host Bill Hemmer grilled Treasury Secretary Scott Bessent during his show ‘America’s Newsroom.’
Bessent is a key figure defending the GOP’s latest budget proposal.
The host cut straight to the point: “This bill adds trillions to our debt. How is that acceptable to this administration?”
The exchange highlighted a growing contradiction within the Republican Party.
The budget in question proposes deep cuts to programs like Medicaid, SNAP, and Medicare.
It also slashes billions from tax credits designed to support clean energy initiatives.
At the same time, it increases the federal deficit, a fact that directly conflicts with the GOP’s traditional stance on fiscal responsibility.
Bessent Defends Deficit by Pointing to Economic Growth
“We think that we can both grow the economy and control the debt,” Bessent responded.
He argued that the key figure to watch is the debt-to-GDP ratio, claiming that if the economy grows faster than the debt, the U.S. can “grow our way out of this.”
Critics Cite Failed Kansas Experiment
But Sam Seder wasn’t buying it. He argued that the theory of growing out of debt fails when tax revenues are simultaneously reduced.
Seder pointed to Kansas as a cautionary tale, where Gov. Sam Brownback’s administration slashed taxes in line with the Laffer Curve, a theory pushed by economist Arthur Laffer that claims tax cuts boost revenue by stimulating growth.
“They tried it in Kansas. They got rid of a lot of individual taxes, they allowed people to become corporations, and they lowered taxes with the idea that this is going to create an economic boom,” Seder said.
Within just a few years, Kansas lawmakers had to raise taxes again as revenues cratered and public services suffered.
“They destroyed their economy in Kansas,” Seder pointed out.
Universal Accounts: Help for All or Just the Wealthy?
The segment also critiqued a provision in the GOP bill that would give children born between 2025 and 2029 a $1,000 investment account.
The funds could only be used for a house down payment, starting a business, or limited educational expenses.
While it sounds like a helpful policy on the surface, Seder argued it’s another vehicle for the wealthy to benefit.
“The idea that someone who saves a thousand dollars and maybe coming from the low end of the income distribution, in other words like the vast majority of Americans, is going to have enough to add to a down payment at one point for their money is going to, is rather slim,” he said.
Wealthier families can contribute an additional $5,000, allowing those accounts to grow tax-free in the stock market.
“It’s just another tax-free savings account for you. It really is a scam.”
Wealth Redistribution in Disguise
Seder added that the structure is similar to a 529 or 401(k), which, while technically available to everyone, disproportionately benefits those with disposable income.
“This is a massive redistribution of wealth upwards.”
The takeaway? Every budget redistributes wealth. The real question is which way it flows, and for Seder, there’s no doubt it’s headed upward.