Trade Nominee Ron Kirk Agrees to Pay Back Taxes
MARCH 2, 2009, 5:04 P.M. ET
By TOM BARKLEY
WASHINGTON -- U.S. Trade Representative nominee Ron Kirk has agreed to pay nearly $10,000 in back taxes owed due to errors in tax returns he filed from 2005 to 2007, the Senate Finance Committee disclosed Monday.
Mr. Kirk, a former Mayor of Dallas, amended tax returns after errors were discovered during the committee's vetting process. Tax issues derailed the nomination of former Senate Majority Leader Tom Daschle as Health Secretary. Treasury Secretary Timothy Geithner and Labor Secretary Hilda Solis also faced questions about tax issues prior to their confirmations -- in Ms. Solis' case the issues were with her husband's business.
But Finance Committee Chairman Sen. Max Baucus (D., Mont.) said Monday he believes Mr. Kirk is the "right person" to bring about a more balanced trade agenda. Mr. Kirk's confirmation hearing is scheduled for next Monday.
The business community has been supportive of Mr. Kirk, who is considered a free-trade advocate.
Separately, the U.S. Trade Representative's office said Monday that President Barack Obama would seek to rework the North American Free Trade Agreement and consider changes to pending free trade agreements with Colombia and South Korea.
In the report, the administration reaffirmed Mr. Obama's campaign pledges to push Canada and Mexico to agree to stronger worker and environmental protections in NAFTA "without having an adverse effect on trade."
The USTR said the U.S. would approach the touchy issue, which during the campaign drew sharp rebukes from U.S. business groups as well as the Canadian and Mexican governments, "in a collaborative spirit."
The USTR report signaled a shift from the Bush administration's primary focus on expanding free trade agreements, giving greater emphasis to protecting workers rights and the environment. But the report lacked detail on proposed policy changes.
"If we work together, free and fair trade with a proper regard for social and environmental goals and appropriate political accountability will be a powerful contributor to the national and global well being," the report said.
Since taking office, Mr. Obama has brought up his intentions to revisit the 1994 NAFTA pact with both of his counterparts. He said during a trip to Canada last month that it is important to avoid stoking protectionist sentiment.
Canadian Prime Minister Stephen Harper expressed concern about "unraveling" the complex pact in a joint appearance. Mr. Obama stressed the need to incorporate the environmental and labor provisions into the core part of the agreement without being "disruptive."
Mr. Obama has also had to conduct damage control with Canada and other major trade partners over a "Buy American" provision in the recently passed stimulus package that requires stimulus-related infrastructure projects to use U.S.-made products. Under pressure from the administration, a clause was added to ensure that the legislation complies with U.S. trade obligations.
The report said the stimulus package showed a commitment to comply with international trade rules.
Meanwhile, the USTR said the administration plans "extensive outreach and discourse with the public" to determine whether three trade pacts negotiated by the Bush Administration with Colombia, Korea and Panama are in the best interests of the U.S. and its trading partners. The USTR said it hopes Congress can move on the Panama deal "relatively quickly." But the USTR report calls for setting up "benchmarks" for progress on the other two.
During the campaign, Obama echoed his party's concerns about violence against union leaders in Colombia in opposing that trade pact, as well as in calling for greater access for U.S. automakers in the South Korea agreement.
Regarding the long-stalled Doha round of global trade talks, the report said the new administration remains committed to a successful completion, but called for additional concessions by other countries.
"It will be necessary to correct the imbalance in the current negotiations in which the value of what the United States would be expected to give is well-known and easily calculable, whereas the broad flexibilities available to others leaves unclear the value of new opportunities for our workers, farmers, ranchers, and businesses," it said.
Write to Tom Barkley at tom.barkley@dowjones.com
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Obama's plan to collect back taxes continues to work. He continues to offer appointments to the scummiest democrats and tax cheats. |
