This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2016/04/08/business/the-treasury-secretary-steps-reluctantly-into-the-limelight.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
The Treasury Secretary Steps, Reluctantly, Into the Limelight A Treasury Secretary at the Center of Obama’s Most Pressing Policies
(35 minutes later)
WASHINGTON — Jacob J. Lew, President Obama’s second-term Treasury secretary, has kept such a low profile in these relatively placid economic times, compared with his crisis-era predecessor, that it seemed he might end up best known for his pending decision to pick a woman for portraiture on the $10 bill.WASHINGTON — Jacob J. Lew, President Obama’s second-term Treasury secretary, has kept such a low profile in these relatively placid economic times, compared with his crisis-era predecessor, that it seemed he might end up best known for his pending decision to pick a woman for portraiture on the $10 bill.
No more.No more.
This week Mr. Lew announced new tax regulations that helped foil the biggest tax-dodging deal to date — Pfizer’s pharmaceutical merger with Allergan, based in low-tax Ireland — and will probably discourage more corporate “inversions” that send American corporate headquarters overseas. Last week he took to both television and a prestigious think tank to define the future of the United States’ sanctions policies, after the Treasury’s moves to unwind some sanctions on Iran, for accepting nuclear limitations, while imposing others on Tehran and North Korea. This week Mr. Lew announced new tax regulations that helped foil the biggest tax-dodging deal to date — Pfizer’s pharmaceutical merger with Allergan, based in low-tax Ireland — and will probably discourage more corporate “inversions” that send American corporate headquarters overseas. Last week he took to both television and a prestigious think tank to define the future of the United States’ sanctions policies, after the Treasury’s moves to unwind some sanctions on Iran, for accepting nuclear limitations, while imposing others on that country and North Korea.
Mr. Lew is leading Mr. Obama’s history-making re-engagement with Cuba as well as efforts to resolve Puerto Rico’s financial crisis. And on Monday, he will deliver another administration policy manifesto — “America and the Global Economy: The Case for U.S. Leadership” — at the Council on Foreign Relations in Washington, and in a 5,000-word essay in Foreign Affairs magazine.Mr. Lew is leading Mr. Obama’s history-making re-engagement with Cuba as well as efforts to resolve Puerto Rico’s financial crisis. And on Monday, he will deliver another administration policy manifesto — “America and the Global Economy: The Case for U.S. Leadership” — at the Council on Foreign Relations in Washington, and in a 5,000-word essay in Foreign Affairs magazine.
Those events, culminating with this week’s surprisingly muscular tax clampdown and his own public relations efforts, have raised Mr. Lew’s profile higher than any time since he became secretary three years ago. That has brought praise from Democrats, and harsh criticism from Republicans and some business groups, which say the Treasury is overreaching its authority and damaging the economy.Those events, culminating with this week’s surprisingly muscular tax clampdown and his own public relations efforts, have raised Mr. Lew’s profile higher than any time since he became secretary three years ago. That has brought praise from Democrats, and harsh criticism from Republicans and some business groups, which say the Treasury is overreaching its authority and damaging the economy.
Douglas Holtz-Eakin, a Republican economist, called the tax regulations “administrative attacks that raise the cost of capital” at a time “of chronic slow growth and poor productivity.”Douglas Holtz-Eakin, a Republican economist, called the tax regulations “administrative attacks that raise the cost of capital” at a time “of chronic slow growth and poor productivity.”
Mr. Lew succeeded Timothy F. Geithner, another self-effacing career public servant, but one who assumed national and international prominence in overseeing the Treasury during the most severe financial crisis since the Great Depression.Mr. Lew succeeded Timothy F. Geithner, another self-effacing career public servant, but one who assumed national and international prominence in overseeing the Treasury during the most severe financial crisis since the Great Depression.
Yet Mr. Lew, in an interview, bristled at the implication that until now his stewardship had been low-key.Yet Mr. Lew, in an interview, bristled at the implication that until now his stewardship had been low-key.
“If you look at any of the periods of the last three-plus years that I’ve been secretary, there have been issues that have been high-profile issues at every point. There is a coincidence that there are a number of things happening at the same time now,” he said.“If you look at any of the periods of the last three-plus years that I’ve been secretary, there have been issues that have been high-profile issues at every point. There is a coincidence that there are a number of things happening at the same time now,” he said.
“I can’t tell you why some things get people’s attention more than others, but there hasn’t been a slow period in the time I’ve been here,” Mr. Lew added. “If anything, it’s been surprising to me how intense it is and how nonstop the inbox is.”“I can’t tell you why some things get people’s attention more than others, but there hasn’t been a slow period in the time I’ve been here,” Mr. Lew added. “If anything, it’s been surprising to me how intense it is and how nonstop the inbox is.”
His outbox has included two previous rounds of anti-inversion regulations to stem corporate tax avoidance, in each of the last two years. Also: Showdowns with congressional Republicans over the periodic need to raise the nation’s debt limit; negotiating, unsuccessfully, with Republicans to overhaul the corporate tax code to close loopholes and lower tax rates; and enforcing economic sanctions — against countries, terrorist groups, individuals and companies — that have become a major tool of foreign policy in recent years. His outbox has included two previous rounds of anti-inversion regulations to stem corporate tax avoidance, in each of the last two years. Also: showdowns with congressional Republicans over the periodic need to raise the nation’s debt limit; negotiating, unsuccessfully, with Republicans to overhaul the corporate tax code to close loopholes and lower tax rates; and enforcing economic sanctions — against countries, terrorist groups, individuals and companies — that have become a major tool of foreign policy in recent years.
Mostly below the radar, Mr. Lew has kept busy managing economic diplomacy with China as well as the European Union, Argentina, Ukraine and Greece. He has put into effect banking regulations mandated by the postcrisis Dodd-Frank law, over the objections of Republicans and industry lobbyists. Last year he secured a long-sought, diplomatically dicey overhaul of the International Monetary Fund to reduce the influence of Europe and Persian Gulf states so that emerging nations like China could have prominence in the organization befitting their economic heft.Mostly below the radar, Mr. Lew has kept busy managing economic diplomacy with China as well as the European Union, Argentina, Ukraine and Greece. He has put into effect banking regulations mandated by the postcrisis Dodd-Frank law, over the objections of Republicans and industry lobbyists. Last year he secured a long-sought, diplomatically dicey overhaul of the International Monetary Fund to reduce the influence of Europe and Persian Gulf states so that emerging nations like China could have prominence in the organization befitting their economic heft.
Even so, the widespread image of Mr. Lew has been that of a low-profile steward for a low-profile time, at least relative to the eventful first years of the Obama administration during a global recession and with the nation’s financial, housing and auto sectors near collapse.Even so, the widespread image of Mr. Lew has been that of a low-profile steward for a low-profile time, at least relative to the eventful first years of the Obama administration during a global recession and with the nation’s financial, housing and auto sectors near collapse.
Both of Mr. Obama’s choices to head the Treasury — Mr. Lew, known as Jack, and Mr. Geithner — had résumés long on jobs in government, not in finance, industry or elective office like many past secretaries. Both could chafe at the demands of political celebrity and a secretary’s role as the public face of economic policy for the world’s richest power.Both of Mr. Obama’s choices to head the Treasury — Mr. Lew, known as Jack, and Mr. Geithner — had résumés long on jobs in government, not in finance, industry or elective office like many past secretaries. Both could chafe at the demands of political celebrity and a secretary’s role as the public face of economic policy for the world’s richest power.
“It certainly is nothing I ever asked for,” Mr. Lew said of his job, and broke into laughter. But Mr. Obama, who favors a tight inner circle, promoted him, Mr. Lew said, “for reasons that had to do with my own personal record and his relationship with me.”“It certainly is nothing I ever asked for,” Mr. Lew said of his job, and broke into laughter. But Mr. Obama, who favors a tight inner circle, promoted him, Mr. Lew said, “for reasons that had to do with my own personal record and his relationship with me.”
“Tim and Jack are both old-school staffers at heart: They’re willing to accept credit when it’s given, but they won’t seek it out,” said Mark Patterson, who was chief of staff at the Treasury for Mr. Geithner and then briefly for Mr. Lew.“Tim and Jack are both old-school staffers at heart: They’re willing to accept credit when it’s given, but they won’t seek it out,” said Mark Patterson, who was chief of staff at the Treasury for Mr. Geithner and then briefly for Mr. Lew.
Within the administration and among those who deal with the Treasury, Mr. Lew is seen as a cautious technocrat, with a grasp of issues and which levers to pull that reflects his experience over decades — as top adviser in the Reagan era to the House speaker, Thomas P. O’Neill; budget director to both President Bill Clinton and Mr. Obama; deputy to then-Secretary of State Hillary Clinton; and Mr. Obama’s White House chief of staff.Within the administration and among those who deal with the Treasury, Mr. Lew is seen as a cautious technocrat, with a grasp of issues and which levers to pull that reflects his experience over decades — as top adviser in the Reagan era to the House speaker, Thomas P. O’Neill; budget director to both President Bill Clinton and Mr. Obama; deputy to then-Secretary of State Hillary Clinton; and Mr. Obama’s White House chief of staff.
That grasp of policy facts and Mr. Lew’s intensity of argument have at times annoyed members of Congress in both parties. Senator Ron Wyden of Oregon, the senior Democrat on the Senate Finance Committee, is not one of them — although, he said, “We’ve had some spirited discussions about the budget sometimes.”That grasp of policy facts and Mr. Lew’s intensity of argument have at times annoyed members of Congress in both parties. Senator Ron Wyden of Oregon, the senior Democrat on the Senate Finance Committee, is not one of them — although, he said, “We’ve had some spirited discussions about the budget sometimes.”
“It’s easy to see how the president feels very comfortable with Secretary Lew,” Mr. Wyden said. “He’s very knowledgeable on the substance, but he’s been around politics enough so that he gets the intersection of politics and policy.”“It’s easy to see how the president feels very comfortable with Secretary Lew,” Mr. Wyden said. “He’s very knowledgeable on the substance, but he’s been around politics enough so that he gets the intersection of politics and policy.”
The secretary and the senator, who have known each other since Mr. Wyden served in the House and Mr. Lew advised Speaker O’Neill, talk weekly about pending matters. So Mr. Wyden was among the few in Washington or corporate America who were not surprised by the regulations introduced this week against “serial inverters” like Allergan and foreign parent companies’ “earnings stripping” their new American subsidiaries to reduce their American taxes. “I like the approach,” Mr. Wyden said.The secretary and the senator, who have known each other since Mr. Wyden served in the House and Mr. Lew advised Speaker O’Neill, talk weekly about pending matters. So Mr. Wyden was among the few in Washington or corporate America who were not surprised by the regulations introduced this week against “serial inverters” like Allergan and foreign parent companies’ “earnings stripping” their new American subsidiaries to reduce their American taxes. “I like the approach,” Mr. Wyden said.
Tony Fratto, who was an adviser to all three Treasury secretaries of President George W. Bush, does not. He called the new regulations “a horrible precedent” stretching the Treasury’s authority “to the breaking point.” But he had praise generally for Mr. Lew’s tenure as Treasury secretary.Tony Fratto, who was an adviser to all three Treasury secretaries of President George W. Bush, does not. He called the new regulations “a horrible precedent” stretching the Treasury’s authority “to the breaking point.” But he had praise generally for Mr. Lew’s tenure as Treasury secretary.
“It’s one of the two or three biggest jobs in the cabinet — you are going to be in the limelight. He is not a guy who seeks the limelight,” Mr. Fratto said. What Mr. Lew does well, he added, is the quiet, behind-the-scenes work of reaching out to hear from all sides on issues: “Having worked for three Treasury secretaries, and knowing Geithner a little, I think Jack is probably the best of them.”“It’s one of the two or three biggest jobs in the cabinet — you are going to be in the limelight. He is not a guy who seeks the limelight,” Mr. Fratto said. What Mr. Lew does well, he added, is the quiet, behind-the-scenes work of reaching out to hear from all sides on issues: “Having worked for three Treasury secretaries, and knowing Geithner a little, I think Jack is probably the best of them.”