Tag Archives: irs scandal

The Flat Tax fantasy

fairtax

In the wake of the recent IRS scandal, some well-intentioned but badly misguided people have begun touting the flat income tax (called the flat tax for shorthand) as a replacement for the current tax code. They claim it would be an antidote to the IRS’s abuses and curb that agency’s powers while also supercharging America’s economy.

But they are dead wrong. The flat tax is no solution at all. It would not solve any of the problems with the current tax code and the IRS, and it could be replaced with a progressive income tax by the next Congress anyway.

Here’s why the flat tax would utterly fail to solve the problem, and why the FairTax – a flat 23% consumption tax designed to replace all federal internal taxes (income, payroll, excise, gift, death, etc.) is the solution:

  • The flat tax would still be an income tax, and as such, would still punish hard work, wealth creation, productivity, and savings, taking away from people what they have earned. Making an income tax flat does not change the fact that it is still a punitive tax on INCOME. By contrast, the FairTax, as a consumption tax, would be levied only on retail sales, not on income, inheritance, or the sales of raw materials or unfinished products.
  • With the flat [income] tax, you would still have to file tax returns every year by April 15th, and be liable for any mistakes you make therein. With the FairTax, there would be no such problems.
  • Administering the flat [income] tax would still require having a large IRS with dozens of thousands of staff to receive and review tax returns, audit people and organizations, and punish cheaters, and the IRS would, of course, retail ALL of the awesome powers it currently has, all of its staff, and all of its budget – and would still retain all your financial records. By contrast, with the FairTax, the IRS would be abolished PERMANENTLY, and under the FairTax bill (H.R. 25), all IRS records would have to be destroyed within 2 years of the FairTax being enacted – the sole exception being records related to Social Security, but these would be turned over to the Social Security Administration, not retained by the Treasury.
  • Unlike the flat [income] tax, the FairTax would be administered by the states, who would then send the revenue (minus their costs of administering the FairTax) to the federal government. Thus, it would dramatically shift the balance of power in the US in favor of the states and against the federal government. There would only be a federal Sales Tax Bureau with 51 personnel to audit the states in rare cases of state malfeasance.
  • The flat [income] tax would keep the current tax code, although it would be somewhat slimmed down from today’s 70,000 pages. The FairTax would abolish the federal tax code completely and replace it with the simple 123-page FairTax Act.
  • The FairTax would provide sufficient revenue for Social Security, though not for the entire federal Leviathan that exists in Washington today.
  • The FairTax would be completely transparent – you would know how much you pay in taxes everytime you make a retail purchase. By contrast, even under the flat tax, you would not know how much you really pay in taxes.
  • The flat [income] tax would keep the 16th Amendment. The FairTax Act would jumpstart the process of REPEALING the 16th Amendment forever, and would sunset (i.e. expire) automatically 7 years after its enactment if the 16th Amendment is not repealed within that time. But once Congress passed a resolution repealing the 16th Amendment, the states would be eager to ratify such resolution, as it would shift the balance of power in their favor.
  • The flat [income] tax would keep tax exemptions and thus allow the IRS to decide who deserves them and who doesn’t. Conservative groups applying for such exemptions would still face IRS audits.
  • And last but not least, the flat [income] tax would not remain flat for long. The next Congress could repeal it and replace it with a progressive one. The evidence? The current monstrosity of a tax code started in 1913 as a flat income tax at a 4% rate. But just 4 years later, in 1917, it was a heavily progressive income tax, with a maximum 77% rate. Although the maximum rate was later cut under the Coolidge Administration to 24%, it was still a progressive income tax – and 24% was still a rate that not even the most fervent advocate of the income tax had hoped for in 1913. Similarly, when President Reagan and the Congress enacted the 1986 tax reform bill, creating only two low rates, it took the Congress and Reagan’s successor, George “Read My Lips” H. W. Bush, only 4 years to add two new, higher rates, and thousands of pages, gimmicks, exemptions, and loopholes, thus essentially undoing President Reagan’s tax reform in just 4 years.

The flat [income] tax is not a solution. It would not solve ANY of the problems with the current tax code, the IRS, the 16th Amendment, the income tax itself, or the US political system. Only the FairTax would do that – by doing away with the income tax, the IRS, and the 16th Amendment PERMANENTLY.

It is no coincidence that the FairTax bill now has over 70 sponsors and cosponsors in both houses of Congress (including such conservative stars as Sen. Ted Cruz and Congressman Tom Price), while the flat tax bill has only one sponsor in the Senate and no companion bill in the House.

The flat tax is not a solution to anything and should not even be considered.

fairtax

 

Voter Integrity Group in Minnesota Identified as Target of the IRS

(Video from Fox News.)

by Jeremy Griffith

22_Secret-Behind-IRS-300x231So now as the IRS scandal continues to come to light and expand, more conservative political groups are finding themselves being targeted by the IRS, including voter integrity group Minnesota Majority and Media Trackers of Wisconsin.

Minnesota Majority has been operating for about seven years under the chairmanship of Dan McGrath who says the trouble really started in March when the IRS sent them a very invasive questionare inquiring into the purpose of the group. Minnesota Majority has been active in attempting to get tougher voter identification laws on the books in the state after the alleged fraud in 2008 when Sen. Al Franken beat out incumbent Norm Coleman by the narrowest of margins following a recount and lawsuits. The group alleged that over 1000 felons were allowed to vote in that election, with only a few being convicted.

Media Trackers CEO Drew Ryun reported that they attempted to get tax exempt status back in 2011 and waited over 15 months for approval. After changing the submission name to “Greenhouse Solutions”, however, acceptance by the IRS took only three weeks.

True Crime: IRS Targeted My Family For Over 4 Months Due To Tea Party Ties

22_Secret-Behind-IRS-300x231I suffer in silence.  Its not a virtue, its not heroic.  Maybe it comes from years of Trauma Nursing at USC Medical Center, where stabbings and gunshots are known as a “regular Friday night”.  Maybe, (and yes I’m going to bare my soul here) maybe,  its from one Friday night in May 1995.  It was my husband, Deputy Stephen Blair, who sustained gunshots, which claimed his life.  His life, given in service to Los Angeles County, given, as he believed, ultimately for a Country where freedom and justice reigned.  I remember my thoughts that night.   Although he was not in the Military, he patrolled South Central LA, its own war zone.  I thought, he died knowing his sacrifice meant something.  That our sons would know it meant something.  That our great Nation’s way of life at times extacts that price.

After Obama was elected, and that other day of doom,  the day the National Health Care bill passed, I felt called to act.  Up until that point, I devoted my life to raising my 3 sons, I remarried (a Police Detective), and was in no way “political”.   I realized what the “Healthcare” nightmare would mean, and I joined a local Tea Party.  I became extremely active, setting up the websites, funding much of the expenses, and was listed as the “Public Relations/ Internet Coordinator.

I started writing articles that were picked up by some well known Conservative websites– a scathing expose on Loretta Sanchez, and a follow-up on my experiences as a Co-Manager for Star Parker’s 2010 bid for Congress– which made it onto HotAir. My articles started to circulate, as I found my voice, always fact based, but with just a tad hint of sarcasm & tomfoolery….something different.  I’d like to thank Anita MonCrief for giving me start on her website Emerging Corruption.  (I am relating all this history as it may shed light on what is to follow.)

In 2010, I started my Blog Talk Radio show, which grew into a “Radio Network” called “Fidelis Radio Network”.  Blessed with a few other Conservative voices, Fidelis averaged over 200,000 listens a month.  Fidelis also had Catholic programming.  As of December 2012, we aired 3 “Conservative Politics” talk shows and 3 “Conservative” Catholic talk shows.  As we grew we attracted some “big named” interviews.  We had plans to expand in 2013.

What a recipe for “disaster”—-Tea Party type folks and Catholics, exactly the mix the Obama Administration “loves” the most.  Those darn Catholics and their non-compliance with providing abortions and birth control.  And those backwater Tea Party hicks, always ranting about their “free speech” while carrying AK47’s around.

Sometime at the end of January, or beginning of February, a funny thing happened.

My husband’s direct deposit pay which is approximately 1600 every 2 weeks was garnished—–and I mean garnished.  Confused and alarmed, his Human Resources Department said it was the IRS.  The IRS? Huh? What?

We never received any correspondence prior– as in “Hello, unless you pay we will start to garnish your wages”.     We usually get a tax return.  His pay was garnished so that we netted 365.00 every 2 weeks.

Luckily, my husband is a “Retired Detective” who receives a pension.   He took a job after retirement  for a firm which needed experienced top professionals in security— for one purpose—to ensure my sons, his step-sons, could finish College.

It had to be a mistake.  This garnishment….what else could it be?  I tried without success to reach a “live” person at the IRS.  And stupid me.  I kept thinking—watch—-his next paycheck will be “right”.  But the HR Department never received any paperwork to stop it.  I STILL thought, I KNEW, its a clerical error somewhere, and I kept calling.  One time on hold for over 3 hours.

Our lives changed drastically.  Just like Maslow’s Hierarchy of needs, my focus was food and shelter.  And getting our sons to their classes.  That was the one thing I could not, would not, allow to change.  My middle son was scheduled to graduate in May 2013, my youngest son was in his Junior year.

So, as I do in a crisis, I tried to just focus on food and shelter.  No internet, no TV, no cell phones.  Little by little all the things many of us take for granted had to go.  And then I got through.  YES, about a week before the whole IRS story “broke” a live person was on the phone with me.

After I gave our Social Security numbers, the “minion” placed me on hold to get a Supervisor.  The Supervisor was completely apologetic! (HUH? the IRS acting somewhat human?)

“OH, mam, yes we have your file here, and while you are on the phone, as we speak, I am faxing directly to your husband’s Human Resource Department to lift this….right away…hold on….its going through.  Yes, there.  Now give them a call to make sure.”

Shocked, and elated, I asked few questions.  At this point I was suffering from exhaustion, depression, shell shock.

I asked “Well, can you tell me why this “snafu” occured?” Silence for about 30 seconds.  Then “Hmmm, its odd, looks like your return was “flagged” for something….not sure why, but its fixed now and you should not expect anymore issues.”

When the IRS story broke, it still didn’t fit until I remembered in January my accountant filed Fidelis Radio as a start-up business, a Conservative Radio Network— so we could write off the expenses.

Then, something even stranger happened.  My domain name (www.fidelisradio.com) expired on April 11, 2013.  ON that same day a “Japanese Firm” bought the domain.  It makes no sense.  We are looking into who these people are and just why and how they would want that domain.  Its of no value except to me.  One would have to be tracking that domain name, c’mon, its no “nike.com”.

The IRS is stating that they “double taxed” us.  When my husband medically retired (he sustained many injuries after being hit by a truck pursuing a armed felon), we received a settlement.  Less than 50,000, this was back in 2009, and we paid the required tax. But that’s their story and they are sticking to it.

I want to apologize for just “dropping” off the face of the earth.  See, it was the only way I could cope.  Only way I could get through it.  In hindsight, I am left with the knowledge of our Country’s demise.  Like Nazi Germany in 1938, you look the other way.  You keep your mouth shut, or it will be shut for you.  We are fed pathetic excuses and unreal propaganda so we can sleep at night.  We may not have the “gold stars” on our coats, but they are there just the same.  Grassroots Conservatives are “little fish” they say.  Why would we bother with a Mom who does a Radio Show and writes a few internet articles?  Even to this writer it sounds  ludicrous.

Ludicrous, right?  That’s what the Liberals say.

We understand there is a price extacted from time to time for our freedoms.  We understand that price.  We are willing, we are able, we are ready, when fate calls our name.  It’s not our strength which carries us through this struggle—we know the strength to endure comes from God.

And that is what they fear.  Truth.  When you speak the truth, there are no “little fish”—make no mistake, the truth always comes out, and that truth will set America free.   Our battle begins, again.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

God Bless You All & God Bless America

PS–My son did graduate in May— with a BA in Criminal Justice and a Minor in Political Science.  He will become a Police Officer, just like his Dad and Step-Dad.

 

 

Will Sarah Palin’s Return to Fox News Help Tea Party and Conservatives

Sarah Palin returns to Fox News as conservative Tea Party champion and movement leader

Sarah Palin returns to Fox News as conservative Tea Party champion and movement leader

With the stroke of a pen, former Alaska Governor Sarah Palin returns to Fox News as a contributor while liberal bombast Chris Matthews of MSNBC loses his weekend syndicated show in July. Does this spell the resurrection of the political street bona fides of Palin who has been a lightning rod for conservatives and the national Tea Party movement since its inception?

What seems clear is that Roger Ailes, the chairman of Fox News has reached a conclusion that the scandal beleaguered administration of President Barack Obama is fair pickings for conservatives. And what better conservative to have on your news team than Sarah Palin who has done considerable heavy lifting for the conservative movement since Obama took the oath of office as president in 2009.

This is especially critical when one considers that the upcoming mid-term elections of 2014 are rife for the political pickings in terms of governorships, the U.S. Senate and increases in the GOP House majority.

Examine the landscape of the world of politics now where the polls are pointing toward a downward slide regarding Obama’s favorability and a notable upward surge in the public’s rejection of Obama’s handling of Benghazi, the IRS attack on Tea Party organizations’ First Amendment rights and spying on journalists.

The surge in public outrage has changed dramatically since Obama’s reelection when he cobbled together a number of key state victories with Chicago style political strong arming that would make dishonored former President Richard Nixon blush. Yet, while America was having its news hijacked by a compliant mainstream media, Sarah Palin remained on the forefront using their own vehicles to communicate the cracks in Obama’s administration armor.

You remember Benghazi, the murder of four honorable Americans, including America’s Ambassador to Libya Chris Stevens scandal that would not go away? The investigation by the House Republicans continued to peel back the wall of lies constructed by the White House and U.N. Ambassador Susan Rice under the direction of unnamed State Department and White House officials.

Then came the tragic massacre at Sandy Hook Elementary in Newtown, Conn, in December, where gun control advocates like Vice President Joe Biden and Mayor Michael Bloomberg attempted to hustle the grieving American public by misdirecting them on who and what caused the tragic deaths of innocent children and school staff. It took leading conservative Second Amendment leaders, including NRA leader Wayne LaPierre’s to reveal the truth behind the lies being perpetrated against legitimate gun owners, and Sarah Palin was right there speaking out on Second Amendment rights.

So as the months passed and the lies began to unravel in terms of Benghazi with subsequent hearings on Capitol Hill and the embarrassing loss by the administration of their own Democrat backed gun control legislation in a Democrat controlled senate, Americans were waking up to the truth about Obama tendency for deception. This was a president and his practices that Palin had already warned about as she continued her work through the grassroots towns and cities across America.

It seems a bit ironic as the former 2008 Republican vice presidential candidate returns to Fox News that the chief bottle washer for liberals Chris Matthews syndicated show goes off into the sunset it.

This appears to coincide with a reenergized Tea Patriotism that has realized vindication in claiming hundreds of Tea Party groups were systematically targeted by IRS government intimidation since 2010.

It does matter whether if a father in Colorado who is battling for gun rights through his right to free speech. It does matter if a mother like Julie Mosher Prince founder of Conservatives Warriors in Lorain County, Ohio proudly states, “Conservative isn’t just a word,” there is a refreshed conservative sea change occurring. Sarah Palin continued presence and return to Fox News represents Act II of the conservative movement America is embracing. Can this be a Reagan-like redux?

Now, it is all hands on deck. While Obama’s scandal of the week continues to erode the effectiveness of the liberals to undermine American patriots who are committed to the preservation of unalienable Constitutional rights, they will not stop attacking conservatives.

With Sarah back in the saddle at Fox News, that should be good news for patriots and Tea Party members all over the nation to take the U.S. Senate in 2014 and the presidency in 2016.

( Read more – click )

Let’s all sue the Internal Revenue Service!

thegatewaypundit2

Unless you have been living under a rock or in a cave somewhere you have heard all about the I.R.S. scandals. The Internal Revenue Service, or should it be renamed the Internal Rectal Service has been intentionally performing financial colonoscopies on Conservatives from all walks of life for the past few years.

The so called “neutral” and “nonpartisan” I.R.S. has been poking, prodding, and picking on Conservatives and Conservative leaning groups and organizations by stonewalling, delaying, and outright denying their applications for funding and tax exempt statuses.

They have targeted Tea Party Groups as well as Conservative think tanks and even some Conservative Candidates running for elected office. They have targeted Conservative Jewish organizations opposed to the Obama Administration’s hostile positions in regard to Israel, and even targeted private citizens whose businesses or private tax returns mentioned the words, “Patriots” “Tea Party” or “Constitution”.

In stark contrast, leftist groups and liberal organizations had their applications moved right to the front of the line. Some Conservative groups had to wait as much as three years to get their applications approved; yet some liberal groups only had to wait as little as three weeks.

Like he has done in the past whenever there is a hot scandal, the President has taken the position of “ignorance is bliss” when it comes to the I.R.S. scandal. He claims he knew nothing about it. He claims he is outraged about it. He claims he just heard about it on television like all you other folks. The liar in chief not only knew about the scandal but he probably watched over it like he watched four Americans die a brutal death in Benghazi.

Here are two recent developments that show that the President had at least partial knowledge of the I.R.S. scandal:

According to the Daily Caller, The Director of the I.R.S. Exempt Organizations Division Lois Lerner who has subsequently been put on administrative leave signed paperwork granting Malik Obama’s shady charity tax exempt status in less than thirty days. This should not come as a shock because Mrs. Lerner’s husband Michael Miles works as a tax attorney for Sutherland, Asbill, and Brennan. The firm actually hosted voter registration drives for the Obama Reelection Campaign; however somehow our Campaigner in Chief knew nothing about the scandal?

Here is more proof Barack Obama knew about the I.R.S. targeting Conservatives:

According to the Whitehouse.gov visiter logs, former I.R.S. Commissioner Douglas Shulman visited the White House a staggering 157 times, including 118 visits during the period in which the I.R.S. was targeting Conservatives. Mr. Shulman visited the White House more times than any other cabinet member, including corrupt Attorney General Eric Holder (62), tax cheat and current Treasury Secretary Timothy Geithner (48), and head of the Department of Homeland Security Janet “Big Sis” Napolitano (34).

In contrast, Mr. Shulman’s predecessor Mark Everson only visited the George W. Bush White House one time in four years. So how is it even possible that Barack Obama did not know anything about the targeting scandal? Answer: there is no way he didn’t know. In fact, I predict it will come out sooner rather than later that not only did he know about it but what is more important is he may have likely directed it.

So what are we Conservatives to do? Are we supposed to just sit back and take it? Should we crawl up into the fetal position and ask for seconds? Should we be intimidated by the I.R.S.?

Hardly.

It has been reported that as many as 25 separate Tea Party affiliated groups have filed a lawsuit against the I.R.S. That is a great start, but it is not enough. It is estimated that hundreds if not thousands of individuals have been targeted. Famous Conservatives like Franklin Graham and even some Conservative Journalists have been audited.

My suggestion is that we file a class action lawsuit against the I.R.S. I am not an attorney but I would think that the monetary damages incurred by Conservatives would warrant such a case. Think about the loss of funding, the expense of the applications, the time and manpower dedication. Then think about how much money Conservatives had to pay to tax accountants, financial advisors, and estate planners? If we filed a large enough lawsuit the I.R.S. might realize it is cheaper to settle than to go to court?

My job as a political strategist and radio talk show host is to think outside the box and come up with answers if not solutions. Again I am not an attorney so I do not claim to know the logistics of how the litigation process may work. What I do know is it is my duty to put it out there so maybe the right person can smooth out the rough edges and put my plan into action. A good idea can only become a great idea when it is acted upon.

Suggested by the author:
A fractured party is a losing party
Why Attorney General Eric Holder is the worst in U.S. History
Dismantling Washington
Obama’s DHS: Drones, Hollow Points, and Secrecy
How the left uses identity politics and fear tactics to influence voters

Acting Commissioner of IRS Resigns Over Scandal

millerHoping to get ahead of the breaking scandal involving the IRS targeting Conservative organizations seeking tax-exempt status, President Obama said he told Treasury Secretary Jack Lew to seek the resignation of acting IRS Commissioner, Steven Miller.

At a press conference this evening, the President announced that Miller had resigned and vowed to work with Congress and Lew to put safeguards in place to keep such targeting from happening again. Obama stated that he was angry, and that this type of behavior would not be tolerated in any department, but in particular from the IRS, given the influence and reach that they have.

Miller issued a statement regarding his resignation, saying that there was a “strong and immediate need” to restore public trust in the nation’s tax agency. According to reports, Miller has known for some time that there were reports of applications taking longer than they should, and had identified “rogue employees” as those responsible for targeting Conservative and Tea Party groups.

The Justice Department has begun and investigation into the IRS, and The House Oversight and Government Reform Committee will hold a hearing on May 22, according to an aide for Rep. Darrell Issa, the Committee’s chairman. No successor to Miller has been named at this time.

Was IRS Surprise Audit of Billy Graham Coincidence?

billy grahamRemember last year before the presidential elections Billy Graham and his Evangelical group sponsored a prominent newspaper ad promoting both Biblical principles and marriage? Interestingly, shortly after these ads were published, the Billy Graham Association received notice they would be subject to an immediate audit by the Internal Revenue Service.

Today, following the scandalous news that the IRS did indeed target organizations who may have been outspoken during the election, Reverend Franklin Graham penned a letter to President Obama.

Read his letter and decide. Was it coincidence or was the IRS specifically targeting this well respected, but outspoken Christian group?

Rev. Franklin Graham’s Letter to President Obama about the IRS targeting scandal