Trump's Nominee For Army Secretary Vincent Viola Adds Another Billionaire To Flush Administration President-elect Trump has selected billionaire businessman Vincent Viola to be Army secretary. Like other wealthy nominees, Viola could qualify for a tax break if he is forced to sell investments.
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The Richest Administration In History Just Got Richer

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The Richest Administration In History Just Got Richer

The Richest Administration In History Just Got Richer

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RACHEL MARTIN, HOST:

You can add another billionaire to the top ranks of the Trump administration. The president-elect plans to nominate a former airborne Ranger turned Wall Street executive as the next secretary of the Army. Vincent Viola would be at least the fourth Trump nominee with a net worth in the billions. Government service would come with a sharp pay cut for many of these folks. But they could get a nice tax break in exchange. NPR's Scott Horsley is here to explain. Good morning, Scott.

SCOTT HORSLEY, BYLINE: Good morning, Rachel.

MARTIN: Before we get to that tax break, what can you tell us about Trump's pick for Army secretary, Vincent Viola?

HORSLEY: Well, he's the son of a truck driver. He grew up in Brooklyn. He attended West Point and served with 101st Airborne Division. He made his fortune on Wall Street starting out as a trader on the New York Mercantile Exchange, and he eventually became chairman of that exchange. He was working there when the World Trade Center was attacked on 9/11, and he later founded and bankrolled a counterterrorism center at West Point. He's on the Forbes 400 list of the wealthiest Americans, and he's also the owner of the Florida Panthers hockey team.

MARTIN: It's hard not to notice that, for a president-elect who's pledged to be a champion of working people, he's nominating a whole lot of people on the opposite end of the economic spectrum.

HORSLEY: Yes, he has. Trump has chosen at least three other billionaires for top jobs. If you think about it, Rex Tillerson, the ExxonMobil CEO who's been tapped as secretary of state, is one of the highest paid executives in America, but he would rank only in the middle of the pack for Trump's cabinet and wealth, well behind, say, investor and turnaround artist Wilbur Ross, Trump's nominee for commerce secretary. The president-elect defended these wealthy picks at a rally in Florida over the weekend.

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DONALD TRUMP: You know, the media was saying, the people that are negotiating your trade deals are very rich. I said, but isn't that what we want?

HORSLEY: Trump's pick for education secretary is married to an Amway heir. She's worth more than $5 billion. And you also have nominees for treasury and labor secretary whose net worth is measured in the tens of millions.

MARTIN: This wealth can be complicated, though, right? Some of these nominees may have to sell off investments to avoid potential conflicts of interest.

HORSLEY: That's right. Federal ethics officials will look at the nominees and how their money is invested. And if those pose a conflict of interest with their official duties, there - they might be required to sell. If you think, for example, about the nominee for labor secretary, Andrew Puzder, he might be forced to sell stock in the fast food company that he's been running because, as labor secretary, he would be responsible for policing that company's wage and hour policies.

MARTIN: What does that mean for them? How big of a problem could it be for these nominees if they're forced to sell off investments really fast?

HORSLEY: Well, there is a sweetener in the law. If a nominee has to sell to comply with federal ethics rules, he or she would be allowed to postpone any capital gains tax on that sale. Steven Rosenthal, who's with the Tax Policy Center, says that's kind of a balancing act that's designed to meet a couple of goals.

STEVEN ROSENTHAL: One is to make government service more attractive to Americans who otherwise would face a tax burden. Secondly, to give Americans confidence that their civil servants would be acting in the country's interest and not their own financial interests.

MARTIN: OK, does that mean Donald Trump himself would be eligible for that tax break?

HORSLEY: It's not entirely clear. The president is not strictly subject to most conflict of interest laws, so he's not explicitly required to sell his stake in the Trump organization, and therefore he might not qualify for the tax break. A lot of ethics watchdogs, however, have been encouraging Trump to sell, saying he's going to face a world of conflict headaches if he doesn't. So far, though, Trump has shown no inclination to sell off. He's - he's pledging to distance himself from the management of his company but not his ownership stake.

MARTIN: NPR's Scott Horsley. Scott, thanks so much.

HORSLEY: Good to be with you, Rachel.

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