The confrontation between Musk and Bessent erupted over who would lead the Internal Revenue Service. Tensions flared on April 16 when Trump appointed Musk's pick, Gary Shapley, a Hunter Biden tax case whistleblower, as acting IRS commissioner—a position Bessent had wanted for his deputy, Michael Faulkender.12 The dispute escalated when Bessent complained to Trump that he wasn't consulted about Shapley's appointment, which had been pushed by Musk's Department of Government Efficiency team.23

The power struggle ended with Bessent prevailing just days after Shapley's appointment. Shapley was ousted after only 48-72 hours in the position, becoming the fourth IRS chief in 2025 and making Faulkender the fifth person to lead the agency since January.456 During their confrontation, Bessent reportedly criticized Musk's DOGE for failing to deliver promised government cuts, while Musk allegedly called Bessent a "Soros agent" who ran "a failed hedge fund."7 White House spokeswoman Karoline Leavitt downplayed the incident as "a normal part of any healthy policy process."18

The confrontation between Musk and Bessent centered on the selection of the next IRS commissioner, with Musk backing Gary Shapley while Bessent advocated for Michael Faulkender1. Shapley had only been appointed days earlier as the fourth acting IRS commissioner of the year before being replaced by Faulkender, whom Treasury Secretary Bessent confirmed in a statement2. The rapid succession of appointments highlights the administration's struggle to maintain consistent leadership at the tax agency.

This selection dispute mirrors the theoretical concept of Shapley values in decision-making systems, which provide a principled approach to valuing contributions in cooperative scenarios34. Just as Shapley values quantify the importance of features or players in a system, the selection of leadership positions involves evaluating candidates' potential contributions to organizational performance. The irony of Shapley being at the center of both the theoretical framework and the real-world political dispute underscores how selection processes—whether for data features or government officials—inevitably involve competing priorities and stakeholder interests.

The confrontation between Musk and Bessent began in the Oval Office within earshot of President Trump and escalated into the hallway, where the shouting match intensified with profanity-laced exchanges12. At the heart of their dispute was control over the IRS commissioner appointment – Musk had successfully pushed for Gary Shapley, while Bessent wanted his deputy Michael Faulkender for the position13.

During the heated exchange, Bessent criticized Musk for overpromising and underdelivering on budget cuts with his Department of Government Efficiency (DOGE), while Musk retaliated by calling Bessent a "Soros agent" and accusing him of running "a failed hedge fund"13. The conflict represents deeper tensions between the two that reportedly date back to the transition period when Musk unsuccessfully advocated for Howard Lutnick to be appointed Treasury Secretary instead of Bessent3. Following the confrontation, Bessent successfully convinced Trump to replace Shapley with Faulkender as acting IRS commissioner4.