Category: insider corruption

Categories
crime and punishment insider corruption

IRS Case Closed! The End! Letsmoveon!

Democratic Congressman Elijah Cummings says it’s time to stop investigating the latest IRS shenanigans. According to him, closed-​door interviews with IRS staffers prove that no White House or other Washington officials were involved in targeting the applications for tax-​exempt status of conservative groups for special obstructionist attention.

Whew! Crisis over.

But the congressman is ignoring a few things.

For example, history. Everything we are now learning (visit TaxProf Blog for the latest news roundups) indicates that this latest shocking scandal only confirms what we already knew about the Internal Revenue Service. The outfit does not play nice. It is not animated by unwavering concern for truth, justice, and even-​handed enforcement of its welter of wretched regulations.

More immediately, the congressman is ignoring the fact that the IRS’s ideological targeting is not resolvable into the actions of one or two frazzled clerks in Cincinnati. (Even if some reporters have valiantly striven to show, in the words of the San Francisco Chronicle, “How One Overworked IRS Worker Ignited the Tea-​Party Targeting Scandal.”)

We know that many DC-​based officials linked to the targeting of conservative groups quit, were transferred, or were put on administrative leave right after the scandal broke. We know that IRS employees in Cincinnati have testified that the DC office especially requested Tea Party files. We know that DC lawyers both reviewed the intrusive questionnaires sent to Tea Party groups and drafted many of the questions. Etc. All irrelevant?

Come on, Cummings.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption national politics & policies

Sebelius Crosses the Rubicon

Senator Lamar Alexander compares the latest Obama administration scandal to Iran-​Contra … he says it’s “even bigger.”

One hates to continually harp on the president and his scandals, but he and his big government keep producing them. So here we go again!

Obamacare was supposed to save money. It hasn’t. And it should be no shock to learn that the plan has already overshot its budget. Its implementation budget. And Congress balked at throwing more money at the “Affordable Care Act,” perhaps on the grounds that  we can’t afford it.

So Health and Human Services Secretary Kathleen Sebelius passed around the hat to the major players in the managed medical insurance industry — the folks previously demonized by Democrats as the greedy bloodsuckers who singlehandedly caused industry price inflation — to push the plan through on a “shoestring budget.”

Trouble is, it’s not obvious that this is legal. Sen. Orrin G. Hatch called Sebelius’s private fundraising effort “absurd,” and promised to inquire about conflicts of interest.

It’s easy to see why the Republicans in the House and Senate are suspicious. Such a move rubs up against the grain of what a republic is. But I’m sure Democrats are shrugging. It is just another business-​government partnership, after all.

Well, it’s not “just another.” It might end up being the biggest ever. And you have to draw the line somewhere. Ancient Romans drew the line to protect their republic at the Rubicon — which Caesar crossed, ushering in empire.

It’s not just armies that cross important boundaries.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption

The Enemies List(s)

It’s no surprise to long-​time observers of the Obama administration, the Internal Revenue Service, or government in general that the IRS has targeted non-​lefty groups for reasons the agency laughably contends are non-ideological.

The current brouhaha is only part of the story. Here’s another part. Frank VanderSloot is a businessman who donated to the Romney campaign. In April of last year, an Obama campaign website chastised several Romney supporters for such high crimes as being “high-​dollar donors” with “less-​than-​reputable records,” interested in “pursuing a specific agenda.” Just the kind of persons that government agencies might like to especially investigate, perhaps?

In any case, within two weeks of the publication of this enemies list, a recent employee of Senate Democrats began rooting around in VanderSloot’s divorce records. Next, the IRS launched audits of his tax returns for 2008 and 2009. He’d never before been audited. Next, the Department of Labor decided to audit the three workers he employed on a cattle ranch under the terms of a visa program for temporary workers.

Coincidence(s)? VanderSloot himself suspects that the audits were retaliation for his political leanings. Wall Street Journal columnist Kimberly Strassel noted at the time that to what extent the harassment had been centrally planned was both undiscoverable and somewhat beside the point. “If this isn’t a chilling glimpse of a society Americans reject, it is hard to know what is. It’s why presidents are held to different rules, and should not keep lists.”

At least, not lists of political enemies.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall insider corruption term limits

The Natural State of Politicians

Republicans took over both chambers of the Arkansas Legislature, last November, and now have control for the first time since Reconstruction — that’s the century before the century before this century.

Not long after their installation ceremony, the Republican majority — apparently eager to make new reforms — introduced Senate Bill 821, creating a new state program to regulate people circulating initiative petitions. Arkansas activists, the Advance Arkansas Institute and Citizens in Charge were effective in getting legislators to dramatically pare back and remove several harmful and unconstitutional provisions of SB 821, but the legislation designed “to make the referendum process prohibitively difficult in Arkansas,” still passed.

Even more underhanded was passage of House Joint Resolution 1009, “The Arkansas Elected Officials Ethics, Transparency and Financial Reform Act of 2014.” It’s a doozy:

  • With claims of preventing legislators from giving themselves a pay raise, the measure actually removes the current constitutional requirement that voters approve any pay increase and creates a commission of citizens (appointed by legislators and other politicians) to give those same politicians a pay raise.
  • While claiming to enact a gift ban and other ethics reforms, the measure actually provides, Arkansas Times’ Max Brantley wrote, “constitutional protection extended to special interest banquets and travel junkets for legislators.”
  • Completely unannounced by the title, the measure also changes the state’s term limits by allowing legislators to hang around for 16 years in the House or the Senate.

Still, I look on the bright side. The people of Arkansas, having meet their new boss, will petition and vote and sue to protect their rights.

Plus, yesterday, the legislature adjourned. It’s safe again in Arkansas.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom insider corruption national politics & policies

No 75 percent Tax Hike

Glenn Reynolds, the Instapundit blogger, is often sensible, always indispensable.

But his idea for slowing “the revolving door between government and business” would encourage government to do more of the bad things freedom lovers loathe.

Glenn says: “Political appointees in the executive branch should pay an extra income tax when they leave for high-​paying jobs.” He wants a surtax of 50 to 75 percent, for five years, on all income greater than what the victims of the surtax had earned as government officials.

Even if lobbying were the biggest cause of outsized government — dubious — expanding government’s ability to impose strangling taxation ain’t the answer.

The tax would, first of all, be unjust in itself, among other things treating persons unequally under the law. It would massively penalize select taxpayers simply for having worked at a certain level in a certain branch of government. Penalize them not only for unapproved-​but-​legal conduct (lobbying), but for unapproved-​but-​legal conduct in which they might engage.

The tax would also be a horrific precedent. For one thing, why apply it only to executive appointees and not also lawmakers, judges, the president?

Indeed, such a tax would foster the notion that it’s okay to confiscatorily target the income of members of any group, not just former government officials, in hopes of preventing other disapproved-​but-​legal conduct. After all, lawmakers wouldn’t be calling up Instapundit to get approval of the next proposed application of his idea.

Back to the drawing board, Glenn.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption

Jesse Jackson, Jr., Fraudster

Guilty. That’s what Jesse Jackson, Jr., former congressman, pleaded in court yesterday.

Fraud. That’s the name of his crime, though it was a particular kind of fraud, the taking of campaign contributions for personal use.

Partnered. The Rev. Jesse Jackson’s famous son was not alone, nor did he merely “fall into” crime out of lax record-​keeping. His wife was also involved in the pattern of embezzlement and tax fraud, and the level of their misappropriations was not trifling.

Sandra Jackson admitted to not reporting $600,000 of income, and the couple confessed to using re-​election campaign funds to

  • buy a gold-​plated Rolex for more than $40,000;
  • purchase $5,000 worth of fur capes and parkas;
  • over $9,000 worth of children’s furniture.

This is corruption, the most obvious kind to which a democratic republic is susceptible.

It is only made more frequent and more expensive in our modern times by the enormous power a congressman can hold over Washington’s tossing about of billions and trillions of dollars.

Who even notices the millions?

Jesse Jackson, Jr., isn’t alone in wanting a piece of the Washington action. Nor is he alone in thinking about himself first, and … well, not having time to think about anything second.

I’ve even seen this happen to minor-​party candidates. It’s too easy to see a political campaign as about the candidate and not the principles — about personal advancement, not representation.

We’ll never have perfect people in public office, but we can do a whole lot better. And it’s good to see the guilty caught and prosecuted.

This is Common Sense. I’m Paul Jacob.