Warren Slams Treasury Tax Policy Nominee on Tax Lobbyist History, Seeks Ethics Commitments Given Potential Conflicts of Interest
“Among your former Federal Policy Group clients are wealthy individuals — including President Donald Trump himself, who ‘has battled the IRS for years over audits of his taxes.’”
“The Office of Tax Policy must pursue tax policy that promotes the fiscal health of the nation, which may not always align with corporations’ desire to avoid paying taxes.”
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Finance Committee, wrote to Kenneth Kies, nominee for Assistant Secretary for Tax Policy at the Department of the Treasury, urging him to mitigate the glaring conflicts of interest created by his background as a tax lobbyist for large corporations and his extensive investments in corporations that lobby the Treasury on tax policy.
“Given your history of repeatedly passing through the revolving door to facilitate corporations’ attempts to evade taxes, the public will have reason to question your impartiality and commitment to serving the public’s interest if you are confirmed for this role,” wrote Senator Warren.
Kies has been a corporate tax lobbyist for almost three decades. Until recently, Kies worked as the Managing Director of the Federal Policy Group, where he lobbied on behalf of corporations that seek to influence tax law. In his role, Kies was paid by the same entities whose tax liability he will now have the power to influence.
For example, in 2018, he lobbied on behalf of Anheuser-Busch and General Electric during their extensive campaign for a “high-tax exception” to new taxes that aimed to crack down on corporations hiding their profits abroad. The “high-tax exception” created by the Treasury as a result of this campaign led to many of the largest companies in the world owing “little or nothing in new taxes on offshore profits.”
This year, Congress may pass another expansive tax-cut package, and Republicans are seeking to deliver trillions in tax cuts to giant corporations once again.
“I am concerned that, if confirmed, you would enter this role with significant conflicts of interest that could cloud your judgment or raise questions about the integrity of official decisions in which you are involved,” continued Senator Warren.
Senator Warren is requesting that Kies:
- Commit to divest his holdings in companies that currently lobby the Treasury’s tax officials or that engage with them in other ways that would create conflicts of interest.
- Recuse himself from all specific-party matters involving his former clients and employers and all particular matters that are likely to directly and predictably affect their financial interests for at least four years while in government.
- Commit not to seeking employment or board membership with a company he has regulated or otherwise interacted with while in government for at least four years after leaving office.
- Commit not to seek employment as a lobbyist, including through work as an informal “shadow lobbyist,” for at least four years after leaving office.
“By making these commitments, you would increase Americans’ trust in your ability to serve the public interest — rather than the special interests of mega-corporations seeking tax breaks — during your time at the Treasury,” concluded Senator Warren.
Senator Warren requested a response from Kies in writing before his nomination vote in the Senate Finance Committee.
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