Treasury choice failed to disclose $100 million

WASHINGTON — Steven Mnuchin, President-elect Donald Trump’s pick to be Treasury secretary, failed to disclose nearly $100 million of his assets on Senate Finance Committee disclosure documents and forgot to mention his role as a director of an investment fund located in a tax haven, an omission that Democrats said made him unfit to serve in one of the government’s most important positions.

The revelation came hours before Mnuchin, a former Goldman Sachs banker, began testifying on Thursday before the Senate Finance Committee, which has historically been bipartisan in its demands for transparency from nominees. Mnuchin was ready to outline his vision for the economy and defend himself against claims that he headed a bank that ran a “foreclosure machine” during the financial crisis.

“The Treasury secretary ought to be somebody who works on behalf of all Americans, including those who are still waiting for the economic recovery to show up in their communities,” said Sen. Ron Wyden of Oregon, the ranking Democrat on the committee. “When I look at Mr. Mnuchin’s background, it’s a stretch to find evidence he’d be that kind of Treasury secretary.”

In a hearing marked by sharp exchanges, Mnuchin struggled to answer questions about his use of tax havens as a hedge fund manager and whether he thought such loopholes should be closed.

Sen. Debbie Stabenow, DMich., pointedly asked Mnuchin if he was using Cayman Islands corporations to avoid taxation. He responded that he was working on behalf of his clients, in accordance with the law.

“Let me just be clear again: I did not use a Cayman Islands entity in any way to avoid paying taxes for myself,” Mnuchin said. “I would love to work with the IRS to close these tax issues that make no sense.”

Republicans came to Mnuchin’s defense, suggesting that none of his omissions were willful, and they gave strong indications that they would vote for him.

Sen. Orrin G. Hatch, R-Utah, defended Mnuchin’s business record and described him as extremely qualified for the job.

J. Scott Applewhite / Associated Press Former Goldman Sachs banker Steven Mnuchin struggled to answer questions about his use of tax havens as a hedge fund manager and whether he thought such loopholes should be closed.