Two Democratic lawmakers are seeking information from the nation’s largest accounting firms about the revolving door between the firm’s tax departments and top positions in the Treasury Department.
Senator Elizabeth Warren of Massachusetts and Representative Pramila Jayapal of Washington elaborated on how multinational accounting firms effectively draft tax rules from within the government that benefit their clients.
The Times found at least 35 instances in which employees of large accounting firms went to the Treasury’s tax policy office or other government positions and then returned to the same firm. In about half of these cases, executives were promoted to partners upon rejoining their old employers, which often meant doubling of their pay.
In letters sent Tuesday to five accounting firms – PwC, EY, Deloitte, RSM and KPMG – two lawmakers insisted the companies were “abusing public trust and taking advantage of the revolving door between public service and private profit”. have been.”
He cited an example revealed in The Times article by a Deloitte tax attorney who sought to ease proposed Treasury Department regulations aimed at eliminating the tax shelters maintained by his firm and his own, including Bristol Myers Squibb. Used by other accounting firms for clients. A few weeks later, he joined the Treasury and his office issued new regulations incorporating the changes he sought at Deloitte. He soon returned to his old firm and was immediately promoted to partner.
The letter asked in detail this informal embedding of accounting firm executives in the government, including how many lawyers from the firms worked in the government and then returned; Names of clients before and after their time in government; Details of compensation to firms before and after their government service; And whether the firm’s employees are allowed to retain clients if they work on matters affecting them while in government.
MPs quoted a bill that he has introduced twice It would tighten several government ethics provisions, including requiring more comprehensive disclosure on lobbying and tightening restrictions on post-government employment.
“Our law will close the revolving door between you and the big accounting firms like the federal government, ensuring that our government officials work for the people, not the wealthiest corporations and their clients,” he wrote.