Robert Reich: The IRS and the Real Scandal

[ProSense]

The IRS and the Real Scandal

“This systematic abuse cannot be fixed with just one resignation, or two,” said David Camp, the Republican chairman of the House tax-writing committee, at an oversight hearing Friday morning dealing with the IRS. “This is not a personnel problem. This is a problem of the IRS being too large, too intrusive, too abusive.”

David Camp has it wrong. There has been a “systematic” abuse of power, but it’s not what Camp has in mind. The real scandal is that:

The IRS has interpreted our tax laws to allow big corporations and wealthy individuals to make unlimited secret campaign donations through sham political fronts called “social welfare organizations,” like Karl Rove’s “Crossroads,” the U.S. Chamber of Commerce, and “Priorites USA.”

This campaign money has been used to bribe Congress to keep in place tax loopholes like the “carried interest” rule that allows the managers of hedge funds and private equity funds to treat their income as capital gains, subject only to low capital gains taxes rather than ordinary income taxes, and other loopholes that allow CEOs to get special tax treatment on giant compensation packages that now average $10 million a year.

- more -

http://robertreich.org/post/50660147280

One disagreement, the IRS interpretation of the law had nothing to do with it. The problem is the law:

Pelosi: IRS Scandal Underscores Need To Overturn Citizens United

House Minority Leader Nancy Pelosi (D-CA) said Thursday there's "no place" for the sort of wrongdoing the IRS has admitted to in targeting conservative groups, but she said the issue underscores the need to overturn Citizens United, the Supreme Court decision that opened the floodgates for unlimited corporate money in politics.

"It has exacerbated the challenge we have. Citizens United has made matters so much worse," Pelosi told reporters.

"We must pass a law that makes it clear that these so-called social welfare organizations must make their priority social welfare rather than engaging in politics," she said.

http://livewire.talkingpointsmemo.com/entry/pelosi-irs-scandal-underscores-need-to-repeal-citizens

Still, instead of addressing the issues Reich pointed out, Congressional Republicans are throwing up fake scandals as smoke screens.

The fact is the Republican attack on the IRS is being prompted by an ongoing crackdown on tax cheats, new tax laws and the implementation of the health care law. Campaign finance laws have also created problems.

Leaked Data Could Result in Biggest Tax Evasion Investigation Into Offshore Accounts in History
http://www.democraticunderground.com/10022837051

Here's a quote from the piece.

“This is part of a wider effort by the IRS and other tax administrations to pursue international tax evasion,” said IRS acting commissioner Steven T. Miller.

"Our cooperative work with the United Kingdom and Australia reflects a bigger goal of leaving no safe haven for people trying to illegally evade taxes.”

IRS Widens Its Hunt of Offshore Accounts
http://online.wsj.com/article/SB10001424127887324482504578454913783585002.html

Battling tax evasion, IRS finds 'substantial' data on offshore accounts
http://thehill.com/blogs/on-the-money/domestic-taxes/298929-battling-tax-evasion-irs-finds-substantial-data-on-offshore-accounts

[ProSense]

1. Kick! n/t

[pipoman]

2. Maybe when lil bob

takes responsibility for his part in the economic collapse he helped create whilst being a traitor to US labor, everything he says won't sound quite so irrelevant..

[ProSense]

3. Kick! n/t