Full Breakdown
Senate Democrats Question HHS Nominee’s Tax Practices
By Drooid · · How we work
Core Allegations
A memorandum prepared by staff of Senate Finance Committee Democrats and circulated to committee members alleges that Chris Klomp, the nominee for deputy secretary of the Department of Health and Human Services, used legal structures that reduced the amount of Medicare and Social Security taxes he paid. The memo, obtained by Bloomberg Government, is based on a review of Klomp’s 2022-2024 tax returns and related financial disclosures.
Tax-Strategy Details
According to the memo, Klomp was active in a limited-liability company called Endurance Companies. The staff contend that his level of involvement allowed him to claim non-passive taxable losses while remaining below the threshold that would trigger self-employment tax liability. As a result, the memo says, Klomp paid less in the payroll taxes that fund Medicare and Social Security than he would have if his activity were classified as self-employment. The staff recommended that Klomp amend his returns to include the omitted self-employment tax, but note that they have received no indication that he or his tax advisors intend to do so.
Political Context
The memo follows a pattern of Democratic scrutiny of Trump-administration nominees. Similar allegations were previously raised against Centers for Medicare and Medicaid Services Administrator Mehmet Oz and Treasury Secretary Scott Bessent during their Finance Committee hearings. The current document suggests that the committee is extending its review to lower-profile nominees such as Klomp.
Official Responses
Both Klomp and Senate Finance Committee Republicans declined to comment when contacted for a response to the memo’s findings. No public statement from the nominee or his representatives has been released.
Potential Implications
If the allegations lead to further investigation, they could affect Klomp’s confirmation prospects and prompt broader inquiries into the tax practices of executive-branch nominees. The episode also highlights the Senate Finance Committee’s role in examining nominees’ financial compliance before confirmation votes.