Monday 07-19-10

Lost in Taxation
The IRS's vast new ObamaCare powers.

If it seems as if the tax code was conceived by graphic artist M.C. Escher, wait until you meet the new and not improved Internal Revenue Service created by ObamaCare. What, you're not already on a first-name basis with your local IRS agent?

National Taxpayer Advocate Nina Olson, who operates inside the IRS, highlighted the agency's new mission in her annual report to Congress last week. Look out below. She notes that the IRS is already "greatly taxed"—pun intended?—"by the additional role it is playing in delivering social benefits and programs to the American public," like tax credits for first-time homebuyers or purchasing electric cars. Yet with ObamaCare, the agency is now responsible for "the most extensive social benefit program the IRS has been asked to implement in recent history." And without "sufficient funding" it won't be able to discharge these new duties.

That wouldn't be tragic, given that those new duties include audits to determine who has the insurance "as required by law" and collecting penalties from Americans who don't. Companies that don't sponsor health plans will also be punished. This crackdown will "involve nearly every division and function of the IRS," Ms. Olson reports.

Well, well. Republicans argued during the health debate that the IRS would have to hire hundreds of new agents and staff to enforce ObamaCare. They were brushed off by Democrats and the press corps as if they believed the President was born on the moon. The IRS says it hasn't figured out how much extra money and manpower it will need but admits that both numbers are greater than zero.

Ms. Olson also exposed a damaging provision that she estimates will hit some 30 million sole proprietorships and subchapter S corporations, two million farms and one million charities and other tax-exempt organizations. Prior to ObamaCare, businesses only had to tell the IRS the value of services they purchase. But starting in 2013 they will also have to report the value of goods they buy from a single vendor that total more than $600 annually—including office supplies and the like.

Democrats snuck in this obligation to narrow the mythical "tax gap" of unreported business income, but Ms. Olson says that the tracking costs for small businesses will be "disproportionate as compared with any resulting improvement in tax compliance." Job creation, here we come . . . at least for the accountants who will attempt to comply with a vast new 1099 reporting burden.

Meanwhile, the IRS will be inundated with useless information, because without a huge upgrade its information systems won't be able to manage and track the nanodetails.

In a Monday letter, even Democratic Senators Mark Begich (Alaska), Ben Nelson (Nebraska), Jeanne Shaheen (New Hampshire) and Evan Bayh (Indiana) denounce this new "burden" on small businesses and insist that the IRS use its discretion to find "better ways to structure this reporting requirement." In other words, they want regulators to fix one problem among many that all four Senators created by voting for ObamaCare.

We never thought anyone would be nostalgic for the tax system of a few months ago, but post-ObamaCare, here we are.

http://online.wsj.com/article/SB10001424052748704518904575365223062942574.html?mod=rss_opinion_main

Why the silence from The Post on Black Panther Party story?
Thursday's Post reported about a growing controversy over the Justice Department's decision to scale down a voter-intimidation case against members of the New Black Panther Party. The story succinctly summarized the issues but left many readers with a question: What took you so long?

For months, readers have contacted the ombudsman wondering why The Post hasn't been covering the case. The calls increased recently after competitors such as the New York Times and the Associated Press wrote stories. Fox News and right-wing bloggers have been pumping the story. Liberal bloggers have countered, accusing them of trying to manufacture a scandal.

But The Post has been virtually silent.

The story has its origins on Election Day in 2008, when two members of the New Black Panther Party stood in front of a Philadelphia polling place. YouTube video of the men, now viewed nearly 1.5 million times, shows both wearing paramilitary clothing. One carried a nightstick.

Early last year, just before the Bush administration left office, the Justice Department filed a voter-intimidation lawsuit against the men, the New Black Panther Party and its chairman. But several months later, with the government poised to win by default because the defendants didn't contest the suit, the Obama Justice Department decided the case was over-charged and narrowed it to the man with the nightstick. It secured only a narrow injunction forbidding him from displaying a weapon within 100 feet of Philadelphia polling places through 2012.

Congressional Republicans pounced. For months they stalled the confirmation of Thomas E. Perez, President Obama's pick to head the Justice Department's Civil Rights Division, while seeking answers to why the case had been downgraded over the objections of some of the department's career lawyers. The Justice Department's Office of Professional Responsibility launched an investigation, which is pending. The independent, eight-member Commission on Civil Rights also began what has become a yearlong probe with multiple public hearings; its report is due soon. Rep. Frank R. Wolf (R-Va.), a prominent lawmaker in The Post's circulation area, has been a loud and leading critic of how the case was handled. His office has "aggressively" sought to interest The Post in coverage, a spokesman said.

The controversy was elevated last month when J. Christian Adams, a former Justice Department lawyer who had helped develop the case, wrote in the Washington Times that his superiors' decision to reduce its scope was "motivated by a lawless hostility toward equal enforcement of the law." Some in the department believe "the law should not be used against black wrongdoers because of the long history of slavery and segregation," he wrote. Adams recently repeated these charges in public testimony before the commission.

The Post didn't cover it. Indeed, until Thursday's story, The Post had written no news stories about the controversy this year. In 2009, there were passing references to it in only three stories.

That's prompted many readers to accuse The Post of a double standard. Royal S. Dellinger of Olney said that if the controversy had involved Bush administration Attorney General John D. Ashcroft, "Lord, there'd have been editorials and stories, and it would go on for months."

To be sure, ideology and party politics are at play. Liberal bloggers have accused Adams of being a right-wing activist (he insisted to me Friday that his sole motivation is applying civil rights laws in a race-neutral way). Conservatives appointed during the Bush administration control a majority of the civil rights commission's board. And Fox News has used interviews with Adams to push the story. Sarah Palin has weighed in via Twitter, urging followers to watch Fox News anchor Megyn Kelly's coverage because "her revelations leave Left steaming."

The Post should never base coverage decisions on ideology, nor should it feel obligated to order stories simply because of blogosphere chatter from the right or the left.

But in this case, coverage is justified because it's a controversy that screams for clarity that The Post should provide. If Attorney General Eric H. Holder Jr. and his department are not colorblind in enforcing civil rights laws, they should be nailed. If the Commission on Civil Rights' investigation is purely partisan, that should be revealed. If Adams is pursuing a right-wing agenda, he should be exposed.

National Editor Kevin Merida, who termed the controversy "significant," said he wished The Post had written about it sooner. The delay was a result of limited staffing and a heavy volume of other news on the Justice Department beat, he said.

Better late than never. There's plenty left to explore.

http://www.washingtonpost.com/wp-dyn/content/article/2010/07/16/AR2010071604081_pf.html


Why? So they have deniablity?

Post documents growth of intelligence since 9/11
WASHINGTON (AP) - Since the terror attacks of Sept. 11, top-secret intelligence gathering by the government has grown so unwieldy and expensive that no one really knows what it cost and how many people are involved, The Washington Post reported Monday.

A two-year investigation by the newspaper uncovered what it termed a "Top Secret America" that's mostly hidden from public view and largely lacking in oversight.

In its first installment of a series of reports, the Post said there are now more than 1,200 government organizations and more than 1,900 private companies working on counterterrorism, homeland security and intelligence in some 10,000 locations across the U.S.

Some 854,000 people _ or nearly 1 1/2 times the number of people who live in Washington _ have top-secret security clearance, the paper said.

... (rest of the story here)
http://www.wtop.com/?nid=116&sid=2005886