‘Meritless claims’
A Trump transition spokesman dismissed the allegations in an emailed statement.
“Scott Bessent has paid his taxes. After providing thousands of pages of records through an exhaustive process, neither Sen. Wyden nor his staff are able to provide any evidence that Scott violated the Internal Revenue Code,” the spokesman said.
“Instead, they have resorted to a subjective interpretation of the tax code, including taking positions that are contrary to the views of the broad majority of tax professionals, accountants and lawyers, in an effort to mislead the public,” the statement continued. “These meritless claims should be dismissed for the partisanship they represent.”
A spokesperson for Senate Finance Chairman Michael D. Crapo, R-Idaho, declined to comment on specific allegations in Democrats’ memo.
“Mr. Bessent has followed the law and provided thousands of pages of documentation as part of the committee’s rigorous vetting process,” Amanda Critchfield, communications director for Finance Republicans, said in a statement.
Publishing firm losses
Finance Democrats also claimed Bessent improperly fully claimed losses from All Seasons Press, a conservative-leaning publishing firm, in 2021 and 2023. Bessent told Democratic staff he was active in the business those two years, allowing him to claim the losses against his full income to lower his tax liability.
But Bessent on other occasions has claimed little involvement in the publishing company, according to the memo. If that were the case, Bessent could only claim losses from the publishing company against income it generated, not income earned from other sources.
Democratic staff also raised issues around a $500,000 bad debt deduction Bessent claimed on his 2023 tax return.
The deduction applies to business loans that go unpaid, but not personal loans. Senate Finance staff was unsatisfied with Bessent’s answer when they asked for proof the deduction was taken on a business loan. In his response to the committee, Bessent said he “originated a business loan in pursuit of a Media/Technology business that Taxpayer believed would have potential synergies with his existing media holdings.”
The memo also accused Bessent of using a pass-through entity to sidestep the $10,000 cap on state and local tax deductions, which was a fixture of Trump’s 2017 tax law. Trump now agrees with blue-state House Republicans who want to loosen the cap, arguing it’s too onerous on their constituents.
Senate Democrats are gearing up for a fight against Scott Bessent, President-elect Donald Trump’s pick for Treasury secretary.
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