Congress
Trump’s inside-the-box pick to run tax at Treasury
President-elect Donald Trump’s pick for his point man on tax at the Treasury Department is an experienced insider whose nomination signals business will have a strong ally in the administration as it pushes through major tax legislation.
Ken Kies, a leading tax lobbyist who has advocated for big corporations like Microsoft and Hess, is widely seen as extremely knowledgeable about both the tax code and the ways of Washington, though he has also developed a reputation among some for sharp elbows and a prickly, suffer-no-fools personality.
If confirmed to be assistant secretary for tax policy, Kies would have a big voice in the fight over Republicans’ expiring tax cuts, not to mention a panoply of regulatory issues — from the fate of Democrats’ “Direct File” initiative at the IRS to the shape of their corporate minimum tax.
He would also make up one half of an odd couple with Billy Long, the folksy former Missouri congressman Trump named to head the IRS despite having little experience with tax policy.
The Kies pick is a clear sign the Treasury will be much friendlier to businesses than during the Biden years, when the department was led by a number of academics who pushed for higher taxes on businesses and high earners.
Democrats will surely decry Kies’ career helping businesses reduce their tax bills when his nomination comes before the Senate Finance Committee. Kies has lobbied for a long list of businesses, including, recently, the cruise line industry, real estate investment trusts and insurance companies, among others.
A fixture in Washington’s tax world since the 1980s, Kies’ experience may give him especially broad influence given that Trump’s pick to run Treasury, Scott Bessent, is not steeped in the intricacies of the code, and neither are many congressional Republicans, many of whom weren’t even in office when the GOP put its 2017 tax cuts into place.
Kies declined to comment.
Before starting his own lobbying shop that he later sold, Kies headed up the Joint Committee on Taxation — Congress’ nonpartisan tax accountants — in the late 1990s. Before that, he was Republicans’ chief counsel for the House Ways and Means Committee, including when lawmakers passed a seminal overhaul of the code in 1986.
Congress
Mullin markup still on
A committee vote on Sen. Markwayne Mullin’s confirmation as Homeland Security secretary remains on track for Thursday despite a fiery sparring session Wednesday between the Oklahoma Republican and Sen. Rand Paul of Kentucky, the chair of the panel that must approve his nomination.
A spokesperson for Paul said after the tense exchange — during which Mullin refused to apologize for comments saying he “understood” why Paul was violently assaulted in 2017 — that the committee vote “is on for tomorrow.”
As chair of the Homeland Security and Governmental Affairs Committee, Paul has wide latitude to schedule action on Mullin’s nomination.
Congress
Elizabeth Warren backs Mallory McMorrow in Michigan Senate primary
Massachusetts Sen. Elizabeth Warren is wading into Michigan’s closely contested Democratic Senate primary, backing state Sen. Mallory McMorrow over two rivals.
It’s a somewhat counterintuitive endorsement for the progressive U.S. senator who has made her backing of Medicare for All a core part of her political identity. McMorrow opposes Medicare for All, while Abdul El-Sayed, one of McMorrow’s opponents, supports it.
But the endorsement is a coup for McMorrow as she seeks to win over the progressive wing of the party in her bid to succeed retiring Democratic Sen. Gary Peters. McMorrow has now secured endorsements from four senators — with Warren joining Chris Murphy of Connecticut, Martin Heinrich of New Mexico and Peter Welch of Vermont — more than opponents El-Sayed and Rep. Haley Stevens.
Warren said in a statement her relationship with McMorrow goes back nearly a decade.
“I remember first calling Michigan State Senator McMorrow after she flipped a Republican-held seat in 2018, and I was immediately inspired by her ideas, her plans, and her fight to make a real difference,” she said. “Mallory is both a fighter and a winner, and I’m proud to endorse her because she’s the proven leader Michigan needs in the United States Senate.”
Congress
Capitol agenda: Tulsi Gabbard takes the hot seat
Tulsi Gabbard heads into Senate Intelligence on Wednesday facing one of the most fraught moments of her tenure as director of national intelligence.
The longtime anti-interventionist is set to be the main character at Wednesday morning’s worldwide threats hearing when she appears with other administration officials, after former top aide Joe Kent resigned as director of the National Counterterrorism Center over the Iran war.
Kent’s resignation has raised the question of how much longer Gabbard will serve in the administration. She’s largely been silent since the U.S. and Israel began striking Iran in late February, and she’s been kept out of military planning on Iran since the U.S. struck nuclear sites in the country last summer.
“Both Kent and Gabbard have had less and less influence,” one House Republican granted anonymity to speak openly said. “They’ve been sidelined.” Gabbard will appear before House Intelligence Thursday.
Gabbard’s testimony last March that downplayed Iran’s nuclear weapons program — prompting a “she’s wrong” from President Donald Trump — is poised to be revisited by senators at Wednesday morning’s hearing, as are her anti-war positions.
“The president made the right move based upon the information that we’ve all seen in classified sessions,” said South Dakota Sen. Mike Rounds, an intel committee Republican. He signaled that Gabbard could be asked about her previous assessment at the hearing.
Around the same time in Dirksen this morning, Sen. Markwayne Mullin (R-Okla.) will be in the hot seat as he testifies on his nomination to replace Kristi Noem as Homeland Security secretary.
Senate Homeland Security is expected to quickly approve the nomination Thursday, though it’s TBD to what extent Mullin will get bipartisan support beyond Sen. John Fetterman (D-Pa.).
“We actually have a pretty good working relationship, and have worked on projects together, but we do have a lot of questions,” said Arizona Sen. Ruben Gallego, a committee Democrat who has yet to say how he’ll vote. “Largely it’s like, who really is in charge of DHS? … Is it going to be Stephen Miller’s in charge?”
What else we’re watching:
— House gets a FISA briefing: Trump officials will host a classified briefing for House members at 3:30 p.m. on the administration’s push for a clean reauthorization of Section 702 of the Foreign Intelligence Surveillance Act, or FISA, due to expire April 20, as conservatives threaten to tank the effort.
Speaker Mike Johnson said he believes his members who are currently opposed to a clean, 18-month extension will ultimately vote for the party-line rule. But two House Republicans are already publicly vowing to oppose the procedural rule to tee up a clean FISA reauthorization, which leaders are aiming to put on the floor next week.
— DOJ officials brief House Oversight: Attorney General Pam Bondi and her deputy Todd Blanche will be on Capitol Hill on Wednesday to brief House Oversight Committee members on the Justice Department’s ongoing Jeffrey Epstein investigation.
It comes the day after the chair, Rep. James Comer (R-Ky.), subpoenaed Bondi to testify under oath as part of the committee’s own Epstein probe. But a GOP spokesperson for the committee said that Wednesday’s briefing, which was scheduled at DOJ’s request, won’t be a substitute for Bondi’s future testimony.
John Sakellariadis, Meredith Lee Hill, Mia McCarthy and Hailey Fuchs contributed to this report.
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