Treasury Secretary Tax Settlement

Treasury Secretary Scott Bessent Resolves Tax Dispute Over Hedge Fund Strategy

Treasury Secretary Scott Bessent has settled a dispute over a tax strategy he used as a hedge fund manager to avoid paying thousands in taxes. The move involved using a tax maneuver common on Wall Street that allowed him to avoid the 3.8 percent tax that funds Medicare. The I.R.S. has argued that individuals like Bessents owe the Medicare tax on all of their income earned at their funds, not just a small portion of it. Senate Democrats showed that Besset was able to avoid $910,000 in taxes over three years by using this maneuver. Bessant disputed this amount but set aside a fund of money to potentially pay the taxes he would have owed.

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