A quick note to George Will

The following was sent this morning to George Will's email address at the Washington Post, without pictures, and with the web pages supplied as footnotes instead of links (which might have redirected this to his spam folder).

Dear Mr Will,

I realize that Fox News is now paying your paycheck, so perhaps you're no longer allowed to look at any other news outlets, but, despite your conservative views, I've always felt that you were reasonably intelligent. If nothing else, you seem capable of forming coherent sentences and spelling things correctly, and these days, that counts for a lot.

However, you might be surprised to learn that you've entered some sort of information bubble. I saw your appearance on Monday's Special Report with Bret Baier, and it appears that there are some facts that you seem to be entirely unaware of.

When you said that the IRS targeting of conservative groups was one of the three biggest political scandals in the last 40 years, this lack of data became openly apparent. And while I hate to argue with a journalist of your extensive experience, I found humor in your statement that "this is not being perused and the president knows that. Hence his sense of weariness and boredom as he discussed this with Bill O'Reilly."

No, Mr Will, he was bored by it because it was a manufactured non-scandal. You see, the simple fact is, this is an example of the IRS actually doing its job, and investigating whether these groups were breaking the law; the simple fact of the matter is that political organizations do not qualify for the tax-exempt status that these groups had applied for.

Let's start from the beginning. The tax code gives us a number of different classifications based on what we do. One of them, a tax-exempt status, is designated 501(c)(4), and it's defined as "Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, ...the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes."

This allows groups to be formed to construct basketball courts for inner-city kids, build a gym for a high school, set up after-school reading programs, operate food banks, or any other activity that can be defined as "social welfare." And it goes further: to prevent people from arguing that defeating a politician would qualify as "social welfare," the IRS specifically excludes political organizations from this particular tax-exempt status.

(ii) Political or social activities. The promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.

Now, here's where the story gets a little weird, Mr Will. You see, the reason that the IRS appeared to be targeting conservative groups was because of a slick little piece of misdirection. You only saw that the IRS investigated conservative groups, because the Congress only looked into the IRS actions when they involved conservative groups, and actively ignored any investigations of liberal or progressive groups.

The Treasury inspector general (IG) whose report helped drive the IRS targeting controversy says it limited its examination to conservative groups because of a request from House Republicans.

A spokesman for Russell George, Treasury's inspector general for tax administration, said they were asked by House Oversight Chairman Darrell Issa (R-CA) "to narrowly focus on Tea Party organizations."

See how that works? I mean, you're a classy guy, Mr Will - you were rocking that bow tie for years after most people had abandoned it, because you felt it gave you a certain old-fashioned gravitas, I guess. So I feel certain that you would disapprove of me referring to a sitting member of Congress as a "lying bag of fuck." That, however, is the immediate reaction I get from this little revelation.

(Now, to be fair, a full listing of the groups under investigation could, at first glance, possibly have given someone the impression that conservative groups were being targeted: after all, since two-thirds of the groups approved for tax-exempt status since 2010 were conservative, you'd expect a larger percentage of them to fall under scrutiny. However, that is very different from the blatant spin that Darrel Issa put on things, isn't it?)

But after all, once even Mitch McConnell abandons a smear campaign, it's pretty clear that the whole thing has just collapsed.

Perhaps, to avoid making yourself look like a hack or a paid shill for Fox "News," you should try to restrict your comments to that nebulous realm we call "facts," instead of just repeating the latest talking points being handed out by liars and partisans? And maybe by doing that, you can come out of this with at least a small shred of the dignity you've been clinging to for years.

Don't you think that would be a good idea?

Sincerely,

Bill Minnich (Albuquerque, NM)

Aren't we tired of this yet?

Much like Benghazi, the Congressional Republicans, desperate for any scandal they can find, are trying to flog the IRS story into some impeachment-worthy conspiracy, when it's actually just a simple case of a group of bureaucrats trying to do their jobs.

The current version of the "conspiracy" here is: Obama ordered the IRS to investigate right-wing political organizations because he is a power-hungry tyrant!!

I think that pretty much covers it, but by the time you read this, it might have morphed into something that sounds even scarier.

The Republicans know that power-hungry tyrants do this kind of thing, because this is something that Republican presidents have done for decades: Nixon tried to use the IRS against his political enemies (it was one of his articles of impeachment), but wasn't allowed to; and the IRS under George W Bush was infamous for targeting liberal groups, like Greenpeace, the NAACP, and churches that spoke out against the war.

Congress has convened five hearings, and have turned up nothing but lies and half-truths in their efforts to smear the president. IRS officials have resigned or been fired, because people further down in the organization were trying to do their job as best they could.

The entire administrative structure of the IRS has been lambasted by the Republicans for their "lack of leadership" (completely ignoring the fact that there is no leadership because the Republicans in Congress have blocked every appointment Obama has made - including his appointment of an IRS director - for the last five years).

The IRS is an easy target, because nobody likes paying taxes. The fact that they already have a negative image in most people's eyes makes smearing them much easier. But, for once, they aren't the bad guys.

Let's start from the beginning. The tax code gives us a number of different classifications based on what we do. One of them, a tax-exempt status, is designated 501(c)(4), and it's defined as "Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, ...the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes."

This allows groups to be formed to construct basketball courts for inner-city kids, build a gym for a high school, set up after-school reading programs, operate food banks, or any other activity that can be defined as "social welfare." And it goes further: to prevent people from arguing that defeating a politician would qualify as "social welfare," the IRS specifically excludes political organizations from this particular tax-exempt status.

(ii) Political or social activities. The promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.

And that inconvenient fact is what the Teabaggers want everybody to forget.

So, after the Citizen's United ruling in 2010, the number of groups applying for 501(c)(4) status doubled, and an already overworked IRS tried to keep up. A couple of workers in the Cincinnati office realized that they could pull up a large number of the "bad" applications by searching for political terms in the applications. (Remember - politics are't allowed for these guys.) Unfortunately, all of the terms they came up with happened to be conservative - probably because conservative groups, and particularly Tea Party groups - had a long history of financial discrepancies.

But when the Cincinnati group explained their test to IRS exempt organizations division chief Lois G. Lerner, she objected to it and it was changed. A few months later, the IRS would release new guidance that suggested scrutinizing “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform movement,” and after that, “organizations with indicators of significant amounts of political campaign intervention (raising questions as to exempt purpose and/or excess private benefit.)”

Which showed that the GOP was just playing political games when they called for the resignation of the acting IRS Commissioner, since the language had already been corrected by the time he sat down in the big chair. The Commissioner in place when the "bad" language was there? Bush-appointee Douglas Shulman.

Were more conservative groups reviewed than liberal groups? Absolutely. And you know why? Because there were more conservative groups applying for tax-exempt status.

Conservative groups accounted for about 84 percent of the spending reported to the FEC — mainly through Crossroads GPS, Americans for Prosperity and the U.S. Chamber of Commerce. Liberal groups spent 12 percent of the dark money. Nonpartisan groups made up the rest.

In actual fact, the congressional investigation has not only found nothing, they now have evidence clearing the White House. But Darrell Issa (R-CA) is the chairman of the House Oversight Committee investigating this lack of a scandal, and he's been running one witch hunt after another since Obama came into office. And now, it turns out, he's sitting on the evidence.

House Oversight Committee ranking Democrat Elijah Cummings on Sunday said that the so-called scandal involving the Internal Revenue Service’s (IRS) targeting of tea party groups was "solved," but Committee Chairman Darrell Issa (R-CA) has refused to release the testimony of a "conservative Republican" IRS manager because it indicated that the White House was not involved.

Last week, Issa had told CNN host Candy Crowley that IRS agents "were directly being ordered from Washington," but he declined to produce complete transcripts of the testimony of IRS employees to back up his claims.

On Sunday, Cummings explained to Crowley that he had "begged" Issa to release the full transcripts. "He's the chairman of the committee, we're not in power," the Maryland Democrat pointed out. "If he does not release them, I will. Period."

"I’m willing to come on your show next week with the chairman, with the transcripts, if he agrees to do that," he added. "But if he doesn't, I'll release them by the end of the week."

These are some of the little facts you need to remember if the subject of the IRS "scandal" comes up.

Nothing Political Here

Move right along

When asked why he robbed banks, Willie "the actor" Sutton is famously but falsely said to have replied: "that's where the money is."  Perhaps the IRS has been thinking along the same lines by targeting groups using words like "patriot" and agitating against "how the government is run" and about the debt. Far Right think tanks and agitators tend to have rich supporters.

According to some, Jewish groups as well have been selected for special handling, whether pro-Israel or purely religious.  Perhaps not.  Perhaps  it's all political, a claim which was and is the standard Republican answer for any charges against Nixon.

The comparison with Richard Nixon and his enemies list is inescapable although we certainly don't have audio tapes of President Obama telling Jimmy Graham that we need to go after the Jews who are "ruining the country."  Even for long term and relentless Nixon defenders, the opportunity to suggest impeachment, to demand impeachment now is so irresistible that it seems at long last to be acceptable for perennial supporters to remind us of Tricky Dick's tricks even though the dismissal of such charges as political is maintained.

We know Nixon was behind a "weaponized" IRS, but do we have a smoking tape of Obama?  I doubt it but that difference will be forgotten. It happened under his watch and that's enough.   Claims that the IRS is independent won't matter. Questions about whether the IRS was politically motivated to take down Al Capone won't arise nor did anyone accuse President Hoover of such things.

Of course there have been so many ridiculous claims against Barack Obama of  impeachable 'high crimes' already that the demands of the self-righteous Right don't quite have the desired effect on the unconverted and those who catalog Republican transgressions.  Still, people like Smugster George sWill aren't going to let it go and the attack on possible 2016 candidates will be joined by increasingly nasal and polyphonic choruses of  Sic Semper Tyrannis. 

sWill, wearing his outrage costume on ABC's This Week, tells us " all hell" would have broken loose had Bush used the IRS against progressives and his poker face never twitches as he forgets about the political assassination of Valerie Plame and other scandals to voluminous to list.  And of course that Bush might in fact be guilty of the same thing isn't quite obscured by the standard props of  Gerogewillian pomposity.

But the level of 'truthiness' in charges against several presidents, including Bill Clinton for using IRS harassment in retaliation against personal lawsuits is significant and of course it's scary.  Anyone who has been through an audit knows that,  and Obama has no choice to make an open investigation rather than to invoke Executive Privilege as his predecessor was wont to do.  But regardless of  who the Special Prosecutor might be and regardless of evidence or lack thereof, I can already smell the stink of  American politics once again.

$108 MILLION INCOME … TAX-FREE!

Jamie and Frank McCourt made $108 million from 2004 through 2009 but paid no federal or state income taxes. The secret lives of the rich and infamous came to light when the couple filed for divorce in Los Angeles County Superior Court.  According to Michael Hiltzik of the LA Times:

The court papers indicate that the McCourts deliberately structured their business at least partially to allow them to live tax-free ...

According to Jamie, the McCourts employed two mechanisms to live tax-free. One was to claim enormous tax losses from their business, which was mostly commercial real estate before they bought the Dodgers. These could be carried forward, offsetting income year after year until they were finally netted out ...

Depreciation is a non-cash expense that can be applied against cash income, reducing your income taxes or creating a loss to show the tax man, even though you're making money. It's common in real estate, though it can also be applied to things like a sports team's player contracts ...

Another McCourt maneuver involves financing and refinancing their assets. The tax rules allow real estate owners to refinance properties with rising values and take out cash tax-free ...

The McCourts have also borrowed against future business income -- in 2007 they took out a $140-million loan against future Dodger ticket sales, of which $20 million went to fund their lifestyles, tax-free.

According to court papers files by Jamie McCourt, Frank manipulated business accounts to make himself look $670 million poorer than he is. Cheating the IRS may be legal, but ...

Heaven has no rage like love to hatred turned
Nor hell a fury like a woman scorned.

Perhaps our good friend and honorary cephalopod, AZRainman, should have the last word …

Credit: AZRainman

THE RICH GET RICHER …

This article by David Cay Johnston, Tax Rates for Top 400 Earners Fall as Income Soars, is a damning indictment of economic inequities caused by Bush era tax cuts:

Since 1992, the bottom 90 percent of Americans have seen their incomes rise by 13 percent in 2009 dollars, compared with an increase of 399 percent for the top 400.

The annual top 400 report was first made public by the Clinton administration, but the George W. Bush administration shut down access to the report.  Its release was resumed a year ago when President Obama took office.

(…)

The top 400 reports understate actual top incomes because of deferral rules. For example, managers of offshore hedge funds who deferred their gains may not be counted in the top 400 reports, which are based on the figure on the last line of the front page of Form 1040.

At least three hedge fund managers made $3 billion in 2007. It is not known how much, if any, of their income they deferred.

(…)

The biggest source of income was capital gains, which are taxed at a maximum rate of 15 percent. Gains accounted for 66.3 percent of 2007 income for the top 400, up from 62.8 percent in 2006 and 36.1 percent in 1992.

(…)

The report shows that the number of the top 400 who paid an effective tax rate of 0 percent to 10 percent declined slightly, to 25 in 2007 from 31 in 2006. In 1992 only 6 of the top 400 paid an effective income tax rate of less than 10 percent.

Another 127 paid 10 percent to 15 percent in 2007, up from 113 in 2006.

Only 33 of the top 400 paid an effective tax rate of 30 percent to 35 percent, which is the maximum federal tax rate.

More tax cuts for the wealthy? Why isn't this called “socialism?”