Warren, Wyden, Whitehouse Push Scott Bessent to Commit to Addressing His Questionable Tax Returns Prior to Committee Vote on His Confirmation
Reports indicate Bessent avoided nearly $2 million in taxes, including dodging Medicare taxes in direct conflict with Treasury Department policy.
“You cannot credibly serve as Treasury Secretary without the ability to assure the public that you are willing to follow and live by the same tax laws as every other American.”
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), member of the Senate Finance Committee, Senator Ron Wyden (D-Ore.), Chair of the Senate Finance Committee, and Senator Sheldon Whitehouse (D-R.I.) wrote to Treasury Secretary Nominee Scott Bessent, pushing him to take additional steps to address reports of questionable deductions and claims on his tax returns.
Senate Finance Committee staff reviews of Bessent’s tax returns in advance of his nomination hearing revealed that he used loopholes and write offs—in direct conflict with Treasury Department policy and U.S. Tax Court rulings—to avoid paying nearly $2 million in taxes. When given the opportunity to amend his tax returns, Bessent refused.
“You cannot effectively serve as Treasury Secretary with the cloud of tax avoidance hanging over your head,” wrote the senators. “To address these concerns, we write to ask that—if you are confirmed—you act to bolster public confidence in your leadership of the Treasury Department.”
The senators are urging him to take four actions to address his tax problems and provide public confidence in his leadership:
- Release his tax returns to provide public confidence that he is following tax laws;
- Voluntarily submit to an IRS audit of his last five years of tax returns, and any returns filed while he is Treasury Secretary;
- Recuse himself from any Treasury Department discussions related to the questions raised by his tax returns; and
- Commit to supporting ongoing enforcement efforts against wealthy tax cheats.
Bessent’s tax returns raised numerous concerns. He reportedly avoided paying nearly $1 million in Medicare taxes on his hedge fund earnings over the course of three years by reporting on his tax returns that he was a “limited partner” in the hedge fund he founded and was “actively involved” in. He also claimed nearly $2 million in losses from his publishing firm, potentially reducing his tax liability by over $800,000, without substantiating his losses for the Senate Finance Committee. Additionally, there are questions about a $500,000 bad business debt deduction—which may have saved him another $185,000 at the top income tax rate. He also utilized a pass-through business to evade the state and local tax deduction cap of $10,000.
“Your tax avoidance represents a serious problem: the Treasury Secretary is one of the President’s top economic and tax advisers, and the Department is responsible for revenue collection—primarily through the tax code,” the senators concluded. “You cannot credibly serve as Treasury Secretary without the ability to assure the public that you are willing to follow and live by the same tax laws as every other American.”
The senators are requesting that Bessent commit in writing to take the four actions prior to any Senate Finance Committee vote on his nomination.
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