SENATE FINANCE COMMITTEE CONFIRMATIONS OF TREASURY & COMMERCE NOMINEES
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On April 10, the Senate Finance Committee held a confirmation hearing to examine the following nominations:
- William Kimmitt for Under Secretary of Commerce for International Trade
- Kenneth Kies for Assistant Secretary of the Treasury
On April 29, the Committee held an executive session to vote on the nominees under consideration, voting 14-13 along party lines to advance Kimmitt’s nomination for Under Secretary of Commerce for International Trade and Kies’ for Assistant Secretary of the Treasury to a full Senate vote.
Key Takeaways
The following is a summary of the main topics explored in the hearing, with further details in the Discussion section below.
- Chairman Crapo (R-ID) emphasized that U.S. farmers and manufacturers benefit from increased market access, highlighting the role of the International Trade Administration (ITA) in promoting exports and enforcing trade rules. He stressed the importance of preventing any proposed tax hike and called for permanently extending the Tax Cuts and Jobs Act (TCJA) to provide certainty to U.S. industries and consumers. Kies supported extending the TCJA, citing significant revenue increases, the benefits of the expanded standard deduction, and the TCJA’s role in promoting economic growth.
- Kimmitt defended the use of tariffs as necessary to combat unfair trade practices and non-reciprocal trade arrangements, referencing the administration’s ongoing efforts to mitigate the negative effects of non-tariff trade barriers on U.S. producers and manufacturers. He stressed the broader need to recalibrate trade relationships, with Kies calling for the need to level the playing field in trade relations and negotiations.
- Ranking Member Wyden (D-OR) criticized President Trump’s tariffs as raising consumer costs and causing inflation. Kimmitt emphasized that tariffs have strategic uses, noting that calling them taxes or means of revenue generation oversimplifies their purpose as a tool to protect U.S. industries and recalibrate structurally imbalanced trade relationships.
- Senator Lankford (R-OK) raised concerns about foreign dumping and enforcement discrepancies, with Kimmitt voicing support for legislative reforms like the Leveling the Playing Field Act and better resources for the ITA’s Enforcement and Compliance division.
Opening Statements & Testimony
Chairman Mike Crapo (R-ID)
Republicans are committed to preventing a $4 trillion-plus tax hike, and to delivering additional tax relief for those who have struggled to keep up due to historic inflation over the last four years. We are also committed to making permanent the proven tax policy from the TCJA. Permanency will provide the certainty that businesses need to make long-term investments that drive growth and will also provide the stability that families need.
Ranking Member Wyden (D-OR)
Trump is raising inflation and causing chaos in the markets, and he admits he is doing it on purpose. Workers are terrified at the prospect of a recession, and Trump’s cabinet is offering zero consolation. The Commerce Secretary says all is well because Trump’s plan is to bring sweatshop labor back to the U.S., while the Agriculture Secretary says families struggling to pay for food amid rising costs ought to return to subsistence farming. Meanwhile, Trump and Republicans are working overtime to ram through Congress a tax bill that amounts to a multi-trillion dollar bailout for billionaires and big corporations. According to the nonpartisan Joint Committee on Tax, the price tag for the Trump-Republican tax agenda is now up to $7 trillion, and the biggest winners by far will be big corporations and the wealthy. There is no discussion of the biggest economic challenges Americans are facing today and are focused on yet more handouts to billionaires and corporations, with everybody else is going to be on the hook to pay for them. These nominees will immediately get busy getting that harmful agenda drawn up and signed into law if confirmed.
William Kimmitt, Nominee for Under Secretary of Commerce for International Trade
President Trump has ushered in a new era in U.S. trade policy rooted in realism, strength, and the recognition that for too long, the U.S. accepted structurally imbalanced trade relationships. These imbalances resulted in U.S. factories closing by the thousands, vulnerabilities in our supply chains and national security, and American workers undercut by unfair competition. Our trading relationships must serve the interests of the U.S., not abstract principles and certainly not America’s adversaries. In this moment of trade recalibration, the Under Secretary of Commerce for International Trade is more vital than ever. ITA plays a crucial role in promoting American exports, enforcing our trade laws, ensuring a level playing field, and attracting foreign investment to the U.S. Our approach to trade must be pragmatic, rooted in American values, and guided by a strategic understanding of our national interest.
Kenneth Kies, Nominee for an Assistant Secretary of the Treasury
During my tenure as Chief of Staff of the Joint Committee from 1995 until 1998, I oversaw development of major tax legislation, including the Taxpayer Relief Act of 1997, the Small Business Job Protection Act of 1996, and the Health Insurance Portability and Accountability Act of 1996. I helped design and negotiate the IRS Restructuring Act of 1998 with Congressman Portman (R-OH), Senator Cardin (D-MD), and Secretary of the Treasury Rubin. In 1997, I initiated a year-long project that resulted in the publication of the Joint Committee on Taxation Tax Modeling Project in December 1997, the most significant project of its kind and the beginning of the effort to bring this estimating capability to the Joint Committee that exists to this day. While I left the Joint Committee in January 1998, I continued to serve at the request of Speaker Newt Gingrich and Chairman Archer to negotiate a permanent long-term solution to the solvency of Social Security with the Clinton Administration. That effort culminated in my participation in the December 1998 White House Conference on Social Security, recounted in a book on the history of the Social Security system entitled “The People’s Pension.” This effort to permanently restore the solvency of the Social Security system, after making significant progress, floundered due to political developments. From 1981 until 1987, I served as Chief Republican Tax Counsel to the Ways and Means Committee and was actively involved in the development of all tax legislation, including the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986. Through these career opportunities, I have worked on virtually every aspect of the tax code.
Discussion
Chairman Crapo (R-ID): How would you support the Global Markets division of the ITA in promoting U.S. exports, particularly amid rising foreign retaliation against American companies and farmers? Kimmitt: Global Markets plays a vital export promotion role, and a key part of that is providing market access to our farmers and ranchers. The division operates U.S. Export Assistance Centers throughout the country, including the World Export Centers, to work with farmers and ranchers in identifying market opportunities and securing market access. I will absolutely give a comprehensive look to those programs and determine how they can deliver the greatest efficiency and benefit to our farmers and ranchers to promote their exports.
Chairman Crapo (R-ID): Why is it important to permanently extend the TCJA, and what economic benefits are there? Kies: The standard deduction, in particular, was increased dramatically in the TCJA, and the revenue impact of that one change was $720 billion over 10 years, illustrating how significant it is. When you look at the overall impact, TCJA is proving to be a very effective and successful growth piece of legislation and making permanent the benefits associated with those provisions is critical. In 2017, total federal revenues were $3.316 trillion, and in 2024, they reached $4.918 trillion, an increase of 48.3 percent. Corporate income tax revenues also rose from $297 billion in 2017 to $529 billion in 2024. The CBO’s 2017 projection for 2024 corporate tax revenue was $405 billion, but it was higher, at $529.9 billion.
Chairman Crapo (R-ID): How do you view the role of scoring in tax policy, and what is your perspective on the current policy baseline procedure used in fiscal analysis? Kies: The current policy baseline is consistent with the 1974 Budget Act, which is how CBO has scored spending decisions. That said, the current policy baseline is a tool for members of Congress to evaluate the merits of legislation as well as a current law baseline, all pieces of information that help inform important decisions. What the current policy baseline highlights is if Congress allows current policy to expire, it has the consequence of being the equivalent of a tax increase. It is a tool to evaluate and make decisions, but ultimately Congress must decide what is the right for tax policy going forward.
Senator Cassidy (R-LA): As U.S. fiscal policy projects a debt-to-GDP ratio reaching 106 percent by 2027, with $36 trillion in existing debt and significant future increases on autopilot, do you believe this trajectory is sustainable, and what are your thoughts on addressing it? Kimmitt: The level of debt we have is extremely troubling and raises significant questions about sustainability on a long-term basis, particularly when you look at entitlement programs, which are facing significant challenges in the near future. The Medicare and Social Security trust funds are going insolvent, at which point, those benefits will be cut by roughly twenty to twenty-five percent. This situation is unsustainable, and we need to act sooner rather than later. I do not think anyone can look ahead and not recognize that significant challenges must be addressed; Kies: The President has noted that low environmental regulations in other markets are a non-tariff barrier. In the role for which I have been nominated, I certainly see this as a trade issue. Leveling the playing field so that countries not meeting the high standards of the U.S. do not gain an unfair advantage is important, with related environmental benefits as well.
Senator Lankford (R-OK): How can we reduce bureaucracy, lower costs, and speed up the process for small and mid-sized American companies seeking to enforce antidumping laws, given the significant financial and procedural barriers they face in proving foreign dumping activities? Kimmitt: I agree. The Enforcement and Compliance division at ITA, which plays a vital role in countering dumping and administering countervailing duties. The unit must have the resources it needs to process these matters quickly to bring meaningful relief to U.S. industries. Legislation is being contemplated, such as the Leveling the Playing Field Act, which touches on this, and I would welcome engagement with on bringing more efficiencies to that process to provide quicker relief.
Senator Lankford (R-OK): How do we fix it when foreign entities deliberately mislabel products to avoid duties, crush American companies through repeated undercutting, and the only penalty is back paying duties while American workers and jobs are still lost? Kimmitt: I would work with CBP to address that issue on the front end, bring stronger enforcement to prevent that from happening, and look at the circumvention authorities and all legal authorities that could bring the relief needed, particularly to a damaged U.S. industry. I would work with the Committee to think of creative legislative solutions to that problem.
Senator Barrasso (R-WY): How are you going to prevent Treasury from targeting businesses with burdensome regulations that go far beyond congressional intent? Kimmitt: I support a tariff strategy that aligns with lower taxes, lower regulation, and unleashing American energy to bring relief to citizens. I look forward to working with Treasury colleagues to bring that to fruition; Kies: Individual taxpayers are the backbone of our federal revenue base, with individuals and payroll taxes representing $4.1 trillion, or 84 percent of all federal revenues. We must treat individual taxpayers fairly, provide them with sound guidance, and follow the Supreme Court’s recent decision that directs all federal agencies to put out the best interpretation, not just a reasonable interpretation, of the statute. Treasury, assuming IRS or tax provisions require regulation, will follow that religiously.
Senator Cantwell (D-WA): Do you think doubling U.S. exports over a four- or five-year period is a good goal, and what would you do to help make that strategy effective? Kimmitt: Absolutely, I would be committed to increasing exports to the maximum extent possible if confirmed. The Global Markets unit at ITA plays an extremely crucial role in this export promotion through the U.S. field offices all over the country, helping small and medium-sized businesses promote exports abroad, and the Foreign Commercial Service in various markets throughout the world. I am committed to promoting U.S. exports abroad and bring market access to all industries.
Senator Cantwell (D-WA): Do you think that alliance building would be a priority? What region do you think the U.S. should focus on most right now, and do you believe China is having too much influence in South America? Kimmitt: I agree that we should be working with a group of countries that are aligned in efforts to resist the Chinese infiltration in the tech space. Every region of the world is important, and South America is certainly important. Looking at Southeast Asia in particular, where companies move out of China but then move to local regional partners with China as a backdoor into the U.S., is also something that demands prompt attention.
Senator Welch (D-VT): Is there more at stake in our policy toward Vietnam than just tariffs and revenue, particularly in terms of maintaining the positive trajectory of the relationship? Is a lot of that trade deficit from textiles? Kimmitt: Vietnam is a good example of the situation we face, where they export around $135 billion to the U.S., and we export about $13 billion to them, resulting in a trade deficit of over $100 billion. Vietnam runs a trade deficit with China of around $80 billion. We have a non-reciprocal arrangement with Vietnam, and while tariffs are one part of that, the non-reciprocal aspect also includes other non-trade barriers.
Senator Blackburn (R-TN): What will you do to address China’s unfair trade practices, especially transshipment through Vietnam, and their adverse impact on U.S. businesses competing against cheap Chinese goods? Kimmitt: Whether it is examining circumvention petitions or utilizing the Industry and Analysis unit, it will be important in this moment of trade recalibration to focus on how trade flows are evolving. Vietnam has a persistent trade deficit with China and a persistent trade surplus with the U.S., currently over $100 billion. As we engage with Vietnam on the root causes of our non-reciprocal trade arrangement, recognizing the diversion of Chinese products through Vietnam will absolutely be part of that discussion.
Senator Tillis (R-NC): Do you believe the FDII provision is worth maintaining as part of the TCJA? Kies: Absolutely. The FDII provision, along with the lowering of the top corporate rate to 21 percent, were specifically designed to encourage U.S. companies to stay here and to bring their IP here. I am not aware that we have had a single inversion transaction since 2017, and the FDII provision was a key part of that.
Kimmitt’s responses to questions for the record are available here, and Kies’ here.