Finance Democrats Demand Scott Bessent Pay Back Unpaid Payroll Taxes

Finance Democrats Demand Scott Bessent Pay Back Unpaid Payroll Taxes

During His Confirmation Hearing, Bessent Agreed to Pay Payroll Tax Evaded During His Time as a Hedge Fund Manager

Latest Second Circuit Court Ruling is Another Confirmation That Limited Partner Loophole is an Illegal Tax Dodge

Text of the Letter (PDF)

Washington, D.C. - Senate Finance Committee (Committee) Ranking Member Ron Wyden, D-Ore., led six Finance Committee Democrats in a demand that Treasury Secretary Scott Bessent pay $910,000 in payroll taxes that he owes from his days as a hedge fund manager.

In the letter, the senators argue that after a recent court ruling, Secretary Bessent should pay what he owes to the federal government.

"Secretary Bessent is the highest ranking tax official in America and he is failing to lead by example by exploiting tax loopholes to avoid payroll taxes that every working American pays out of each paycheck," said Wyden. "In Trump's America, you have to pay your fair share of taxes, but the ultra-rich like Scott Bessent get to pay what they want, when they want."

During his confirmation hearing, Secretary Bessent argued that his refusal to pay his debts to the IRS hinged on a position regarding the scope of the limited partner exception. A ruling that was overturned last week by the Court of Appeals for the Second Circuit, which oversees New York and Connecticut, where his hedge fund, Key Square Group, was located. Instead of outright paying his debts, Bessent cited "ongoing litigation," and decided to take a "wait and see" approach by putting the money he owes in a reserve fund.

"Many Americans are financially struggling in Trump's economy. Until he pays what he owes, Secretary Bessent is placing himself above the law," said Wyden.

Other senators that signed the letter include: Senators Sheldon Whitehouse, D-R.I., Maggie Hassan, D-N.H., Catherine Cortez Masto, D-Nev., Elizabeth Warren, D-Mass., Tina Smith, D-Minn. and Ben Ray Luján, D-N.M.

The text of the letter is here.

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