American Elephants

How They Spend Your Hard-Earned Money: by The Elephant's Child

And was paying your hard-earned money to the IRS painful? $600,000 of taxpayer money is going to the National Science Foundation to study — why people cheat on their taxes.

The National Science Foundation approved the 2015 proposal which set out to “advance basic understanding of how tax compliance behavior emerge”, to determine if there is a link between taxpayers feeling that tax policies are unfair and trying to avoid paying, by cheating. Any several thousand of you willing to write a clear response for, say, half the price? Thought so.

The IRS itself estimates that 83 percent of Americans file and pay on time.

If you are bothered by government waste, which is voluminous,  let your representatives know. They won’t do anything about it unless they know there is some blowback.

Free Speech? Trump Wants Stronger Libel Laws So He Can Sue Newspapers Who Aren’t ‘Nice’. by The Elephant's Child


Donald Trump made his first definitive statement on just what he would do as president. Up to this point, he has been remarkably vague, but the Trump people seem to believe he’s making a commitment.  He is taking on The New York Times and The Washington Post saying they are dishonest and losing money. But he said when he’s president they’ll “have problems.”

“One of the things I’m going to do if I win, and I hope we do and we’re certainly leading. I’m going to open up our libel laws so when they write purposely negative and horrible and false articles, we can sue them and win lots of money. We’re going to open up those libel laws. So when The New York Times writes a hit piece which is a total disgrace or when The Washington Post, which is there for other reasons, writes a hit piece, we can sue them and win money instead of having no chance of winning because they’re totally protected,” Trump said.

Well, they haven’t been ‘nice’ to him. What did you expect?

Donald Trump responded to demands that he release his tax returns, as he promised to do, by saying that he couldn’t right now because he was being audited. And he said he’s been audited every year for twelve years.

“I’m always audited by the IRS, which I think is very unfair — I don’t know, maybe because of religion, maybe because of something else, maybe because I’m doing this, although this is just recently,” Trump said in an interview with CNN’s Chris Cuomo immediately following the 10th GOP debate on Thursday night.

That provoked major gales of laughter, but the IRS took him seriously: and said to Mr. Trump: “Nothing prevents you from sharing your tax documents.”

Donald Trump claims he can’t release his tax returns until he’s done being audited by the IRS. But the federal agency on Friday said that’s not true.

“Federal privacy rules prohibit the IRS from discussing individual tax matters. Nothing prevents individuals from sharing their own tax information,” a spokesperson for the IRS said in a statement. …

I want to [release them], except for many years, I’ve been audited every year,” Trump said during the debate. “Twelve years, or something like that. Every year they audit me, audit me, audit me. Nobody gets audited — I have friends that are very wealthy people. They never get audited. I get audited every year. I will absolutely give my return, but I’m being audited now for two or three years, so I can’t do it until the audit is finished, obviously. And I think people would understand that.”

Trump has been consistent about his business record and his defense of bankruptcy as a tactic. He has weathered four major bankruptcies and considers them as just a cost of doing business, or as his shrewdly using existing bankruptcy law to his advantage. While his Chapter 11 bankruptcies have allowed his businesses to live and see another day, that’s not so true for the smaller businesses who had made the mistake of contracting with the Trump empire.

People are inclined to deeply disapprove of companies who do big layoffs when the company is not doing well, Carly Fiorina was criticized or a major layoff of workers at Hewlett Packard, yet it was that action that saved the company and made it ready to prosper when the dot-com crisis passed. Bankruptcy means that smaller creditors may not be paid back, and for some of those it means going out of business.

The question is if this way of doing business is in any way transferable to the economy of a very large country. Overspending and defaulting on debts is for countries like Greece, hopefully not for the United States of America, although under the Obama administration the national debt has reached scary levels.

“Analysts have stopped trying to figure out Trump’s true positions or his political philosophy — if he has one—since he has flip-flopped so much.” The idea that his pride in his tactics might provide a model for a President Trump when dealing with an out-of-control public debt is frightening. It is fair to ask if he would default on all or any part of America’s multi-trillion dollar public debt.

Trump’s satisfaction clearly comes from wheeling and dealing, and building the TRUMP brand. He’s has some successes and a lot of failures, but it seems to be the game and the brand that he enjoys. I’m not sure that is an attractive quality in politics. I’d rather see a recognizable political philosophy like smaller government, free markets and free people. Mr. Trump doesn’t seem to understand free speech, he’d rather sue.

And he doesn’t talk much about what he’d do as president other than  do something really big, and it would be wonderful.


Obama’s Scandals: Not Funny Anymore. by The Elephant's Child

U.S. Treasury Secretary Jack Lew has chimed in on the IRS “Lost Emails Scandal:

  • Lew: “Sometimes a broken hard drive is just a broken hard drive.”

From Zero Hedge: “perhaps the NY Post put it best: The thing about dogs eating homework is, it could actually happen. This can’t. This is “The dog ate my hard drive, broke into another building, ate the backup of the hard drive, then broke into six other top officials’ offices and ate their hard drives also.”



“Political Posturing, Phony Scandals” and Talking Points. by The Elephant's Child

But over the past couple of years in particular, Washington has taken its eye off the ball.  An endless parade of distractions, political posturing and phony scandals shift focus from what needs to be done. 
— President Barack Obama, Wednesday July 26, 2013

Oddly enough, the scandals (plural) only became “phony” just days after a retiring  IRS lawyer implicated the IRS chief counsel’s office, headed by an Obama appointee, as well as the head of the IRS’ exempt organizations office.

“In Thursday’s hearing before the House Oversight Committee, 72-year-old retiring IRS lawyer Carter Hull implicated the IRS chief counsel’s office headed by William J. Wilkins, who attended at least nine White House meetings, and Lois Lerner, head of the exempt-organizations office, in the IRS scandal.”

In so doing, he made clear the targeting of Tea Party groups started in Washington and was directed from Washington.reported Investors.

“Former White House senior adviser David Axlerod on Friday called the IRS’ inappropriate targeting of mainly conservative political advocacy groups applying for nonprofit status “stupid and disturbing” but argued that there are far more pressing issues for the country to deal with.

I think the behavior was something that needs to be corrected, but I don’t think that it was the political scandal that was [there], Mr. Axlerod said on MSNBC”s “Morning Joe.

Noting that President Obama has already replaced the top leadership at the tax agency, Mr. Axlerod added, “I think all these hearings searching for the smoking fun of a political scandal where the White House or someone in [a} high place ordered this — I think that is a phony deal. I don’t think that’s the real issue reported,” the Washington Times.

National Review tells the story of “a tea party group targeted by Democrats gets attention from the IRS —and the FBI, OSHA, and the ATF.” Catherine Engelbrecht’s story of her family’s three-year ordeal is both credible and chilling.  You need to read the whole thing. And she is not alone, there are many other cases. Frank VanderSloot, an Idaho businessman and Romney campaign donor, was threatened, slandered, audited, and audited again. No fine, no penalty, but his legal bills ran about $80,000. The stories abound. Dozens and dozens of conservative groups were targeted by IRS audits, endless questions, requests for more information, targeting by other agencies, anything that could delay the 501(c)(4) status that would enable deductible donations. There certainly seemed to be an official effort to neutralize individual donors and groups who were supporting Mitt Romney, in an attempt to influence the outcome of the election.

The National Law Journal asked “Why Should the Internal Revenue Service Be Beyond Reproach?”

The Internal Revenue Service in recent weeks has acknowledged that it targeted applicants for tax-exempt organization status based on their political viewpoint, in violation of basic First Amendment principles. That was, obviously and admittedly, a big mistake….Imagine that some Tea Party groups subjected to special monitoring by the IRS were considering suing the agency for violations of their speech, association and equal protection rights. If the Internal Revenue Code imposed a large fine on anyone who unsuccessfully sued the IRS, we would all recognize that as an impermissible penalty on the right to petition. Yet that’s exactly how the refund penalty provision works. Imposing a penalty will deter people from seeking refunds in close cases, out of fear that if they lose, they could end up owing a hefty fine. By deterring refund claims, the IRS insulates its own decision-making from legal challenges and impairs citizens’ rights to seek relief from their own elected government.

The Supreme Court has guarded this right assiduously. The right covers petitioning the legislature, the executive branch or the courts. It prohibits any sanction — whether a fine, tort liability or even a retaliatory investigation — on the right to petition.

The president, prior to deciding it was a phony scandal, said he wasn’t going to stand for any misbehavior at the IRS and fired Acting Commissioner Steven Miller, but it turned out that Miller was due to retire in a couple of weeks anyway.

The new acting commissioner of the IRS is Daniel Werfel, who has risen through the ranks as a civil servant, primarily at the OMB and as a lawyer in the Justice Department.  He has already announced that “inappropriate screening was used more broadly than disclosed.” There were some inappropriate BOLO lists (Be On The Lookout), but he just hasn’t been able to find any evidence of intentional wrongdoing.  Nothing to see here, just move along. Can you spell c-o-v-e-r-u-p?

Jeffrey Zients, former acting OMB head who met with IRS officials at the White House during the targeting scandal, has been out of the country since April, and has not yet returned.

When the IRS targeting scandal broke in May, both the Obama administration and the mainstream media took it quite seriously. Even MSNBC’s Chis Hayes called the selective screening of conservative groups a “genuine abuse of power” at the time.

The evening and morning shows did 96 stories in the first two weeks according to the Media Research Council. The coverage steadily disappeared, and between June 28 and July 24, the Center recorded “zero stories” on the matter. When a major development broke last week — testimony by a retired IRS worker that an Obama appointee was involved in the screening process, only CBS evening news reported it.

In early June, the Democratic National Committee sent a memo to reporters declaring that the word to describe the GOP’s reaction to the Obama administration’s  scandals was “overreach,”  Salon published an article on the IRS issue asserting that in the end, “the entire scandal narrative was a fiction.”

The White House invited selected reporters to attend an off-the-record briefing with White House Chief of Staff, Denis McDonough, in mid June. The White House had been criticized in the previous week after details of the NSA’s surveillance was leaked. About 24 reporters were already in the meeting when the President arrived to discuss his thoughts on recent events — although they were not able to report on what was said. Some reporters said they would not have attended had they known the President would be attending. Getting answers on the record, New York Times reporter Peter Baker said, after all, is our job.

Obama did not specify just which scandals were “phony” and “political posturing” but the administration has been attacked over the National Security Agency’s surveillance programs leaked to the public; the IRS targeting of conservative groups, and the extent to which that influenced the election; the Department of Justice’s seizing of media phone records; last year’s attack on the U.S.mission in Benghazi, Libya and the death of our ambassador and three others, and the attempted coverup; and the government’s Fast and Furious scandal which resulted in the death of Brian Terry and hundreds of Mexican citizens. These are all, we are told, “phony.

The Republican’s “War on Women,” on the other hand, is real?

IRS Commissioner Shulman Visited the White House 157 Times, But Nobody Noticed. by The Elephant's Child

Former IRS Commissioner Douglas Shulman visited the White House at least 157 times during the Obama administration. That’s more visits than any member of the president’s cabinet. Shulman’s predecessor Mark Everson visited the White House once during four years of service in the George W. Bush administration. But Mr. Shulman testified in March that the IRS was not targeting conservative groups.

He was asked what some of the reasons might be that he was at the White House. He answered “Um, the Easter Egg Roll with my kids, our budget, helping the Department of Education streamline application processes for financial aid. ”

Attorney General Eric Holder, the president’s friend and loyal lieutenant logged 62 visits. But they didn’t discuss targeting conservative organizations, no Tea Party groups, no targeting groups favoring Israel ( at least five groups have been audited by the IRS) but they didn’t talk about that either. Nobody knows just who he visited or why he was there, but it surely didn’t have anything to do with this seemingly vast array of conservative groups who were selected out for delay, audits, prying questions about their finances, members, friends of members, meetings, agendas, reading material, delay, names and addresses, and more delay. It’s just a puzzlement.

Targeting Political Enemies By Fair Means or Foul. by The Elephant's Child

Once a scandal emerges, more people feel free to talk, or want to proclaim themselves on the correct side of the controversy. The Internal Revenue Service (IRS) gets to handle all the financial information of citizens and businesses who pay taxes because they don’t give out information to anyone, whether government official, press, or private citizen. Apparently the IRS office that handles applications for tax-exempt status has felt free to release the applications and tax returns of citizens, organizations, and businesses that do not hew to the reigning party line freely.

The progressive-leaning investigative journalism group ProPublica says the Internal Revenue Service office that targeted and harassed conservative groups during the 2012 election cycle gave them nine confidential applications of conservative groups whose tax-exempt status was pending. The initial spin was that the perpetrators were low-level people in some back office in Cincinnati.  It seems that groups that seemed to be associated with the Tea Party, patriotism, the Constitution, the Declaration, were pro-Israel, expressed any opposition to the Federal Government, the National Debt, the Budget Deficit.

ProPublica, undoubtedly on the advice of attorneys, wants to get out ahead of the scandal and admit that they received, and made public information from applications or returns, assuming that they were newsworthy. Oddly, they did not target any groups with the word “progressive” or who received millions from the Sandler Foundation or George Soros” Open Society Foundations. ProPublica was initially given millions from the Sandler Foundation to “strengthen the progressive infrastructure” meaning very liberal. The group has won two Pulitzers for their investigative reporting — attacks on oil companies, the health care industry, opposition to fracking, and coal, of course:

Throw in a couple of investigations making the military look bad and another about prisoners at Guantanamo Bay and you have almost the perfect journalism fantasy— a huge budget, lots of major media partners and a liberal agenda unconstrained by advertising.

ProPublica is not the only Soros-funded organization stacked with members of the supposedly neutral press. There’s the Center for Public Integrity, which received $651,650 from the Open Society Institute in 2009 alone. The Center for Investigative Reporting (CIN) which received close to $1 million from Open Society from 2003-2008. They lean to stories on climate change, illegal immigration and the evils of corporations.

We are constantly told that journalists are neutral, and it isn’t true. They bemoan the influence of money in politics, yet make no mention of the influence of money in journalism. They need be more up front about their connections, their funding and who sits on their boards. There is a reason why they are losing money, losing subscribers and losing advertising.

And trust for the IRS is gone. Everybody lawyer up. Obama seems unconcerned. He does not take this seriously, any of this.  He has never felt, as far as I can tell, that the words he says particularly matter. What he says today doesn’t necessarily stand. He might say something different tomorrow. Whether it’s because he doesn’t think you will remember, or that he doesn’t think you’ll care, I don’t know. He got a full four Pinocchio’s from the Washington Post for his claim that he identified the Benghazi attack at the time as a terrorist attack.

All these scandals are inflating into vast bubbles, and the more you find out, the more questions there are.

First Shoe Dropped on Friday, The Other Next Week! by The Elephant's Child

The IRS in the infamous Friday Night News Dump admitted that it had targeted conservative organizations —specifically Tea Party groups, or any group that has words like “Patriot,” “Constitution,”or “Declaration of Independence” in their materials. The IRS also admitted that they improperly demanded donor lists from some of these organizations. This is playing politics with tax records, and an appalling violation of the bedrock principle of American democracy that the coercive powers of government are never to be used for partisan purposes.  But groups with “progressive” or “progress” in their names were not similarly targeted.

So why are they admitting this late on a Spring Friday just before Mothers’ Day when the public is supposedly out buying flowers for their moms? That’s what you do when you hope no one will notice. It seems that a report is due out this next week from the IRS Inspector General. By next week, maybe it will all be old news and no one will pay attention. The Agency even use the timeless passive phrase designed to absolve any actual humans. “Mistakes Were Made.”

It is disturbing that Treasury Secretary Jack Lew has not apologized to the American people and promised a full investigation. Nor had President Obama.  It was only low-level people in Cleveland who didn’t know any better.

The chairman of a House subcommittee is demanding more information from the IRS about its practice of searching the emails of  suspected tax fraudsters. Chairman Charles Boustany (R-LA) of the Ways and Means Committee according to an April article in The Hill, asked the IRS to provide information about whether it mines Facebook, Twitter or other social  media without a warrant, and what searches it has conducted since 2010. The ACLU released documents in which the agency claimed that it does not need a warrant to access emails, text messages and other electronic communications.

At Powerline, John Hinderaker notes that “this is not the first time the Obama administration has abused the IRS. In August 2010, Austin Goolsbee, who directed Obama’s Economic Recovery Advisory Board and later chaired his Council of Economic Advisers gave a press briefing in which he discussed corporate income taxes. In that briefing, he suggested that he had access to confidential IRS data, and falsely accused the administration’s beta noire, Koch Industries of not paying corporate  income taxes.”

The claim was false, but how would an administration official have access to records that show how much a corporation pays in taxes.? Such access would be illegal.

Last month it was reported that dozens of IRS employees claim to be unemployed in order to receive welfare, housing allowances and food stamps. Twenty-four current and former IRS employees have been charged with stealing government benefits. They were indicted on charges that they illegally received more than $250,000 in benefits.

It is going to be very interesting to find out what the IRS Inspector General has to say, in his report next week.


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