Leaking power steering fluid from pump

it's a compression fitting , the seal isn't made in the threads the flare on the end of the line gets squashed against the other knob end , get the tape off there and clean the actual mating surfaces up , even some know it alls do that , they just don't get it

So clean it real good and hook it back up and should be good?

Anything you put back together on a car should be clean I think , may be the line is cracked or other problem I don't know but tape doesn't belong on that type of fitting

Never use teflon tape on the power steering system. No only is this unnecessary it can damage the pump or rack if a piece of teflon gets into where it is not supposed to be.