Sen. Elizabeth Warren (D-Massachusetts) and Rep. Pramila Jayapal (D-Washington) are demanding information on “corrupt schemes” to pad accounting firms’ profits involving the Treasury Department, the Internal Revenue Service (IRS) and other government agencies.
The lawmakers have sent letters to five top accounting firms asking them to detail their revolving door relationships with the government. The request comes after a September New York Times report exposing how staff and executives at accounting firms like PwC take jobs within the Treasury Department and other agencies to help write tax codes that will benefit their former companies — and then return to those companies with raises or promotions.
The New York Times uncovered 35 examples of this practice during the last four presidential administrations, calling it a “remarkably effective behind-the-scenes system to promote [accounting firms’] interests in Washington.” Even veterans of the accounting industry admit that the revolving door is a major reason why the wealthy are able to benefit from and exploit the U.S. tax code.
“Accounting giants are abusing the public trust and taking advantage of the revolving door between public service and private profit,” Jayapal and Warren wrote in letters to Deloitte, PwC, EY, KPMG and RSM.
The lawmakers continued by citing Warren’s Anti-Corruption and Public Integrity Act. “Americans are sick and tired of these corrupt schemes,” they went on. “The…