Recent ethics filings indicate that Frank Bisignano, confirmed as head of the Social Security Administration (SSA), has been granted a major tax deferral on hundreds of millions in stock holdings.
What Happened: Bisignano, ex-CEO of Fiserv and among Wall Street's most highly paid executives, is divesting almost $484 million in company stock as per conflict-of-interest regulations.
Owing to a provision in federal tax law, he can indefinitely postpone payments in capital gains taxes on those sales by reinvesting the proceeds in other assets.
The deferral also entails an extra 150,000 shares worth $25 million held by his wife and in family trusts. The Office of Government Ethics granted approval for the move this week, according to The Lever.
Why It Matters: More than 70 million Americans depend on SSA programs for retirement and disability benefits, but the department is under pressure due to budget reductions and staff cuts. Bisignano, who called himself "fundamentally a DOGE person," has generated concern among Social Security advocates and Democratic lawmakers.
The tax break he received, which is part of a loophole installed in the 1990s, has earlier been granted to other high-level appointees like billionaire banker Howard Lutnick and former Treasury Secretary Henry Paulson.
Bisignano's tax break comes as the GOP's reconciliation bill falls short of President Donald Trump's promise to eliminate taxes on Social Security, with 25 million seniors still likely to be taxed on their benefits.
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