Tag: IRS

Categories
government transparency tax policy

The Block Stops Here

We were initially told that the IRS had apologized to Tea Party and patriot groups for blocking them from non-​profit tax status.

But there has been no apology.

Instead, last Friday, Lois Lerner, the head of the tax-​exempt division of the Internal Revenue Service, confided to a group of tax attorneys at an American Bar Association conference in Washington. She admitted that the IRS had indeed been guilty of unfairly delaying and blocking Tea Party and conservative groups from establishing tax-​exempt organizations, as these dissident groups had been complaining about for years.

Who was to blame? Only mere “low-​level employees” — no senior management, heaven forfend.

Then it was disclosed that senior IRS muckety-​mucks actually knew in 2011 — well before the IRS commissioner assured Congress that the agency wasn’t doing precisely what it was doing. Now, latest disclosures put the beginning of the political bias policy all the way back to 2010.

Of course, the IRS vehemently denies that politics played any role.

And what about Barack “buck-​stops-​here” Obama?

“I first learned about it from the same news reports that I think most people learned about this,” the president said in response to a question, adding, “I think it was on Friday.”

In denial, the president spun, “If, in fact, IRS personnel engaged in the kind of practices that had been reported on and were intentionally targeting conservative groups” and “if you’ve got the IRS operating in anything less than a neutral and non-​partisan way, then … it is contrary to our traditions.”

Well, if these ifs weren’t so (traditionally?) evasive, we might take the prez seriously.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

IRS Overreach

The taxman puts his hands in our pockets. But it’s one thing to reach into our bank accounts and take our money, it is quite another when governments engage in different kind of overreach, where they go beyond the rule of law and just start pushing people around.

Take the case of Sabina Loving and Elmer Killian.

The Institute for Justice has.

These plaintiffs are suing the IRS because that bureau of plunderers has ruled that Ms. Loving and Mr. Killian — who provide tax preparation services — must be regulated and schooled and certified by the IRS itself. The IRS says that these independent tax preparers (independent in that they are not part of big businesses) can’t just offer their services on the market, they must undergo an expensive annual education and certification process.

The overreach part is that the IRS has no statutory authority to regulate these businesses. Congress rejected precisely such regulation back in 2008. So the clever kleptocrats now argue that a pre-​IRS law hailing from way back in 1884 authorizes their regulatory powers.

But that law doesn’t even deal with representatives of folks who owe the government money. It deals with representatives of people owed money by the federal government.

Nice try.

“You will be as shocked as Captain Renault to learn that big tax-​prep companies — H&R Block, Jackson Hewitt, Liberty — all support the new regulations,” writes A. Barton Hinkle in Reason magazine, “for the same reason big tobacco companies go after roll-​your-​own smoke shops: It’s in their interest to stifle low-​cost competitors.”

Like Ms. Loving and Mr. Killian.

As we prepare our tax returns in the next several weeks leading up to April’s filing day, perhaps we should burn a little incense along with our midnight oil in support of the plaintiffs and the Institute for Justice. For, really, they are fighting for us, too — eternal vigilance and all.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies tax policy too much government

Commiserations on Tax Day

It’s April 15, my eldest daughter’s birthday. I used to tell her she wouldn’t have to pay taxes like everyone else, because IRS folks wouldn’t dare make her file on her birthday, would they?

Seriously, when it comes to family and taxes, I’m just glad that my wife does all the work. 

My job is getting the birthday cake.

You can understand why I’d shirk the tax work. There are 40,000 sections to the tax code, and no one understands it all.

This complexity has costs. And not just to my sanity. A whole industry has risen to ease the burden of figuring out our taxes. One hates to begrudge anyone an honest living, but really, most of today’s tax accountants would better serve humanity in some other job.

Simplifying taxes should be as important as tax reduction. Instead, because our representatives and our president just cannot stop themselves from spending more and more of our money, they are raising taxes. It’ll be on the proverbial rich, in the immediate future, but they won’t stop there.

They can’t stop there. 

Why? Because if you took all the wealth — not just the income, but all the wealth — from every millionaire in the country, you still couldn’t pay all the future obligations of the federal government.

My darling daughter aside, April 15 is no day to celebrate. It’s tax day, and it marks the degradation of our nation at the hands of our politicians.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

IRS Wants Your Four Cents

On the one hand, we’ve got trillion-​dollar federal deficits and no sign of any austerity measure on the congressional horizon. On the other hand, we’ve got dark-​suited IRS agents bullying small businessmen for allegedly being four cents behind in taxes.

The letter that the two IRS suits hand-​delivered to the owner of Harv’s Metro Car Wash in Sacramento claims that with penalties piling up since 2006, Aaron Zeff now owes over $200. Zeff reports that the agents “were deadly serious, very aggressive, very condescending.”

The incident is bad press for the Internal Revenue Service. But maybe the taxmen relish this kind of bad press once in a while. After all, they need the rest of us to worry what might happen to us if we step out of line even four cents worth, even if it’s only in the fevered imagination of some bored IRS accountant.

Was the hounding of Mr. Zeff a deliberate plan or just zealous overreaching by a couple of goons who forgot to read the manual on being nice to taxpayers? Who knows. Either way, though, do we want the IRS in charge of slapping us with a big tax penalty if we don’t sign up for a government-​approved health plan? After all, that’s a big part of the so-​called health care “reform” that Congress is in process of imposing on us.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom tax policy

Making the IRS Integral to “Health”

If a doctor who is supposed to help you get better keeps stabbing you with a knife instead, it may seem beside the point to focus on any particular wound. The whole stabbing process is wrong.

Democrats in Congress have found a way to duplicate this effect. Their evolving medical reform package is prolific in ways to attack our freedom. 

But remember: Some stab wounds may slice closer to the heart than others.

If the current majority government has its way, in the new healthcare regime we won’t simply be invited to cooperate. There are huge hunks of coercive power built into their system. Force. Not friendly reminders and advertising enticements.

Take a simple provision of their plan: Individuals who decline to sign up for approved medical insurance will be financially penalized. You might be ordered to forfeit 2.5 percent of your income above a certain level. What happens if you refuse to pay this fine? The IRS could swoop in and seize your assets. Eventually, you could end up in jail.

Today, we don’t have much privacy right when it comes to dealings with the IRS. But at least agents refrain from prying into details of our medical coverage. Under the new regime, though, the tax agency would directly monitor your insurance compliance, and give your tax info to health commissars.

Kind of makes you feel sick, doesn’t it?

This is Common Sense. I’m Paul Jacob.