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taxation
'Wallowing in Corruption': Lobbyist Who Helped Ultra-Rich Dodge Taxes Now Heads Trump Tax Office
"By putting a professional tax dodging consultant in charge of their tax law, Republicans are continuing to make their intentions crystal clear—this law is a gift to billionaires and huge corporations."
Jul 15, 2025
A corporate lobbyist who for decades has helped major companies and rich Americans dodge taxes is now serving as the U.S. Treasury Department's top tax policy official, a position in which he will write rules implementing the newly passed Republican budget law.
That role is "enormously powerful," The New York Times' Jesse Drucker wrote in a Monday profile of Ken Kies, whom the GOP-controlled U.S. Senate confirmed as assistant treasury secretary for tax policy in a party-line vote last month. President Donald Trump selected Kies for the position in January.
The Republican budget measure, which President Donald Trump signed into law earlier this month, contains around $4.5 trillion in tax cuts that will flow disproportionately to the wealthiest Americans over the next decade, according to nonpartisan analysts.
"By putting a professional tax-dodging consultant in charge of their tax law, Republicans are continuing to make their intentions crystal clear—this law is a gift to billionaires and huge corporations like those Ken Kies has spent his career looking out for," Leor Tal, campaign director for the progressive advocacy group Unrig Our Economy, said in a statement Monday.
"As families struggle with rising prices from Trump's tariffs and face devastating cuts to Medicaid and SNAP," Tal added, "Republicans are doubling down on helping the richest of the rich, while working people pay the price."
In his role as a lobbyist whose client list has included Goldman Sachs, Pfizer, Microsoft, and other corporate behemoths, Kies has helped secure major tax giveaways for large companies and wealthy Americans—including in the 2017 Trump-GOP tax law that the new Republican budget package extends.
"In the George W. Bush administration, Mr. Kies successfully pushed for legislation to make such offshore tax dodges even easier to execute. During the Obama administration, he fended off another attempted crackdown on those strategies," Drucker wrote Monday. "In 2017, as part of a sweeping package of tax cuts signed by Mr. Trump, Mr. Kies lobbied for a new tax break that provides a 20% deduction to certain businesses, which overwhelmingly benefits the richest Americans."
Drucker noted that in his new position, Kies "will oversee about 100 attorneys and economists at the Treasury Department's Office of Tax Policy, a powerful corner of the federal government."
"The office issues regulations to help the government administer tax laws and provides guidance that can render the latest tax-dodging strategy a gold mine—or doom it," he added.
Kies previously served as managing director of the Federal Policy Group, a lobbying firm at which he "delivered significant legislative and regulatory results for his clients, which include major corporations, trade associations, and coalitions of companies with common objectives," according to a since-removed biography of Kies.
"Mr. Kies has led coalition efforts to enact legislation responding to the World Trade Organization's ruling against U.S. foreign sales corporation benefits, to avert enactment of broad 'corporate tax shelter' legislation that would have an adverse impact on legitimate business transactions, and to reverse Treasury regulations targeting 'hybrid' arrangements of U.S. multinational corporations, among other projects," the biography stated.
Highlighting the Times profile of Kies, Rep. Pramila Jayapal (D-Wash.) wrote Monday that the Trump administration is "wallowing in corruption."
"Five trillion dollars in tax cuts for the wealthiest, written and administered by the wealthiest," she wrote. "On the backs of stripping healthcare and food from working and poor people. Shame on you."
In addition to implementing the new Trump-GOP law, Kies could be positioned to help deliver another sizable tax break to the rich.
The Washington Post's Jeff Stein reported last week that on the heels of passage of the GOP budget law, right-wing organizations and Republican lawmakers are set to push the Trump administration to unilaterally "drastically reduce what investors pay on their capital gains."
"The plan rests on changing how the Treasury Department calculates those taxes," Stein wrote. "The highest-earning 1% of Americans would receive 86% of the benefits from indexing capital gains to inflation, while the bottom 80% of income earners would get just 1% of the benefits, Penn Wharton projected in 2018."
Rep. Brendan Boyle (D-Pa.), the top Democrat on the House Budget Committee, wrote in response to Stein's reporting that "after gutting health care for millions of Americans and passing massive tax breaks for billionaires, Republicans are now working on even MORE tax breaks for the ultra-rich."
"They aren't interested in fighting for working families—only their rich friends," Boyle added.
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5 Facts That Show the Enormity of US Inequality
Well-off Americans have quietly conspired for over 40 years to transfer the riches to themselves, leading to a state of inequality that leaves the entire bottom half of our country with only about 2.5% of total national wealth.
Jul 12, 2025
The Trump administration wants us to believe that lower-income Americans, especially Medicaid recipients, are the biggest drain on the country's wealth. That couldn't be further from the truth.
Well-positioned Americans have quietly conspired for over 40 years to transfer the riches to themselves, leading to a state of inequality that leaves the entire bottom half of our country with only about 2.5% of total national wealth.
Whatever wealth exists among America's poor should not be taken away because of some ignorant prejudice of the rich. Following are some of the insidious effects of greed and blame-passing.
1. The Richest 1% Have Transferred a Third of America's Wealth From the Bottom 90% to Themselves
A Time report, referring to a Rand study, estimated that "the cumulative tab for our four-decade-long experiment in radical inequality... crossed the $50 trillion mark by early 2020."
To put $50 trillion in perspective, total U.S. wealth at the end of 2023 was about $150 trillion.
Elon Musk is leading the prospective trillionaires with over $400 billion at the end of June, 2025.
Yet with all this wealth rising to the top, American billionaires, according to economist Gabriel Zucman, have an effective tax rate of 8%.
2. Taxes Owed on Decades of Stock Market Gains Will Be Wiped Out When the Rich Kids Inherit the Wealth
In a blatant example of a system exploited by the wealthy, the tax code includes a so-called stepped-up provision which allows the super-rich to leave much of their multi-trillion-dollar stock market fortunes to their children with all the accumulated gains magically erased, and thus, in many instances, without a single dollar in taxes coming due.
It is estimated that by the middle of this century anywhere from $84 to $124 trillion in assets will be transferred to heirs, much of which will qualify for the tax-free stepped-up provision. So much for our meritocracy.
3. The Richest 1% Have Enough Money to Buy Almost ALL the Houses in America
A Redfin report explains: "The combined value of nearly 100 million U.S. homes reached $49.7 trillion at the end of 2024, while the combined net worth of America's wealthiest 1% has grown to a record $49.2 trillion."
4. The World's Richest 1% (40% of Whom are Americans) Emit as Much Pollution as Two-Thirds of Humanity
Oxfam summarizes: "The richest 1% of the world's population produced as much carbon pollution in 2019 than the 5 billion people who made up the poorest two-thirds of humanity."
5. The Poor Are Being Systematically Diminished
After 40 years of growing inequality, the "Big Beautiful Bill" is about to make it even worse.
Almost 12 million Americans are expected to lose healthcare coverage with the trillion-dollar Medicaid cuts. Major health research cuts are planned for the National Institutes of Health and the Centers for Disease Control and Prevention.
Most damaging could be the impact on the kids. Even though nearly 1 out of 5 households with children in America experiences food insecurity, the administration is cutting the Supplemental Nutrition Assistance Program (SNAP) by a quarter-trillion dollars over the next decade. A Propublica report states: "The staff of a program that helps millions of poor families keep the electricity on, in part so that babies don't die from extreme heat or cold, have all been fired. The federal office that oversees the enforcement of child support payments has been hollowed out. Head Start preschools, which teach toddlers their ABCs and feed them healthy meals, will likely be forced to shut down en masse.."
And at a time when young students are struggling to deal with the pressures of a social networking society, the administration is cutting over a $1 billion in youth mental health funding.
The poor seem to have nowhere to turn. A Vera report explains: "Almost every state has at least one law that bans activities people experiencing homelessness engage in simply to survive. Laws that prohibit panhandling, loitering, living in vehicles, or sharing food and water in public spaces all discriminate against people experiencing homelessness, as authorities eject them from public spaces, confiscate and destroy their property, and transport them to mass shelters and jails."
The Republican Response
U.S. Vice President JD Vance shrugged off the "minutiae of the Medicaid policy." President Donald Trump agreed that Republicans were "not doing any cutting of anything meaningful."
But just in case the cuts turn out to be meaningful for Americans, Sen. Mitch McConnell (R-Ky.) assures us that they'll "get over it."
In Trump's world of wealth and status, tolerance for poor Americans has turned into an ugly sense of disdain.
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Trump's GOP Megabill Slams Door on Progress of the 20th Century
It’s not enough that Trump slashes taxes on the rich. He partially pays for those cuts in ways that punish poor and working-class people. Now we must fight like hell to regain what we've lost—and go further.
Jul 11, 2025
As Republican Senators moved their megabill through the Senate, I was celebrating the life of my father-in-law who died at 91 earlier this spring. Born during the Great Depression, he lived a long, prosperous, healthy life because of work and luck, but also because of doors opened by policies enacted between 1900 and 1980. This country’s biggest historical challenge has been delivering this progress to all Americans, but Republicans have cut it back for everyone, retreating from many 20th century achievements in ways that will slam doors, rather than opening them, for the next generation.
Lawmakers established the individual income tax in 1913, the corporate income tax in 1909, and the estate tax in 1916. The new tax law weakens all three. These taxes, combined with the payroll tax created in the 1935 New Deal, enabled poverty to plunge, education levels to soar, and lifespans to nearly double over the course of the 20th century. The roads and railroads, schools and colleges, and pipes and power sources that our tax dollars funded catalyzed industrial, educational, and health advancements that transformed our world.
The income tax, corporate tax, and estate tax raise revenue for our collective needs and do so progressively, falling most heavily on those most able to pay. These are the funding sources Republicans chose to attack in their megabill. That’s why the law’s huge giveaways go so resoundingly to the uber-rich. All told, the richest 1 percent – a group with incomes exceeding $916,900 per year – will get a trillion dollars in tax cuts over the next decade. Find the average annual gift to the wealthiest 1 percent in your state here.
More than 70 percent of this law’s tax cuts go to the richest fifth of people, while middle-income Americans get just 10 percent and the poorest fifth get less than 1 percent. And for 80 percent of Americans, Trump’s tariffs will offset most or all of the tax cuts by raising prices on things we all buy.
Make no mistake, President Trump and his Congress have guaranteed that fewer Americans will have health insurance, more children will go hungry, and states will have less federal funding to deliver good schools, affordable college, and quality roads and bridges.
It’s not enough that Trump slashes taxes on the rich. He partially pays for those cuts in ways that punish poor and working-class people. The new law makes the biggest reductions to health care in American history – stripping insurance coverage from 17 million Americans by kicking them off of Medicaid and taking away their Affordable Care Act subsidies. On top of booting people off health care, this will force near immediate closure of more than 300 rural hospitals.
The second major funding source literally takes food from hungry families by slashing the Supplemental Nutrition Assistance Program (SNAP) (once known as food stamps), a program that provided a meager but essential $2.84 per person per meal last year. These are the biggest attacks on food aid in history, abandoning a core federal commitment to provide at least minimal nutrition to the elderly, disabled people, and the very poorest children.
The final major spending cuts end incentives that were sparking jobs and investments in the green energy economy. This threatens 4,500 clean energy projects, imperils hundreds of thousands of jobs, and is projected to add billions of dollars to Americans’ annual energy costs. The subsidies were reducing the carbon emissions that contribute to climate change. Gutting them is a baffling choice as hurricane season bears down on coastal regions. They also were strengthening domestic energy production, making the U.S. less dependent on oil suppliers in the middle east and elsewhere.
Despite spending cuts, the bill will add trillions over the next decade to the national debt. This will shift costs onto the next generation, making it more expensive to borrow to buy a home, finance college, or even purchase the basics.
My father-in-law lived a great life in part because of taxes. His generation – particularly white men in his generation – benefitted from growing investments in public schools, affordable college, a GI bill that made housing and higher education even more manageable, a skyrocketing economy, and plentiful jobs often with unions, wage growth, and sometimes, as in his case, great health insurance and a full pension.
None of the benefits of the boomer generation were distributed equally and Black Americans were particularly left out. And starting with Ronald Reagan’s assault on unions, job quality deteriorated, with health coverage and pensions eroding particularly for workers without a college degree. But make no mistake, President Trump and his Congress have guaranteed that fewer Americans will have health insurance, more children will go hungry, and states will have less federal funding to deliver good schools, affordable college, and quality roads and bridges.
A hard-working, devoted, optimistic man, my father-in-law had unyielding confidence that America would keep its promise to the next generation. This week Republicans reneged on that promise. We can collectively reclaim it, so every baby born today has the chance at upward mobility and achievement that many in previous generations did. America’s future just got dimmer. We have an obligation to restore its brightness.
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