Obama administration has diverted $500M to IRS to implement healthcare law

The Hill
Sam Baker

The Obama administration is quietly diverting roughly $500 million to the IRS to help implement the president’s healthcare law.

The money is only part of the IRS’s total implementation spending, and it is being provided outside the normal appropriations process. The tax agency is responsible for several key provisions of the new law, including the unpopular individual mandate.

Republican lawmakers have tried to cut off funding to implement the healthcare law, at least until after the Supreme Court decides whether to strike it down. That ruling is expected by June, and oral arguments last week indicated the justices might well overturn at least the individual mandate, if not the whole law.

“While President Obama and his Senate allies continue to spend more tax dollars implementing an unpopular and unworkable law that may very well be struck down as unconstitutional in a matter of months, I’ll continue to stand with the American people who want to repeal this law and replace it with something that will actually address the cost of healthcare,” said Rep. Denny Rehberg (R-Mont.), who chairs the House Appropriations subcommittee for healthcare and is in a closely contested Senate race this year.

The Obama administration has plowed ahead despite the legal and political challenges.

It has moved aggressively to get important policies in place. And, according to a review of budget documents and figures provided by congressional staff, the administration is also burning through implementation funding provided in the healthcare law.

The law contains dozens of targeted appropriations to implement specific provisions. It also gave the Department of Health and Human Services (HHS) a $1 billion implementation fund, to use as it sees fit. Republicans have called it a “slush fund.”

HHS plans to drain the entire fund by September — before the presidential election, and more than a year before most of the healthcare law takes effect. Roughly half of that money will ultimately go to the IRS.

HHS has transferred almost $200 million to the IRS over the past two years and plans to transfer more than $300 million this year, according to figures provided by a congressional aide.

Owe The IRS? Bill Would Suspend Passport Rights For Delinquent Taxpayers

CBS Los Angeles 

A bill authored by a Southland lawmaker that could potentially allow the federal government to prevent any Americans who owe back taxes from traveling outside the U.S. is one step closer to becoming law.

Senate Bill 1813 was introduced back in November by Senator Barbara Boxer (D-Los Angeles) to “reauthorize Federal-aid highway and highway safety construction programs, and for other purposes” .

After clearing the Senate on a 74 – 22 vote on March 14, SB 1813 is now headed for a vote in the House of Representatives, where it’s expected to encounter stiffer opposition among the GOP majority.

In addition to authorizing appropriations for federal transportation and infrastructure programs, the “Moving Ahead for Progress in the 21st Century Act” or “MAP-21″ includes a provision that would allow for the “revocation or denial” of a passport for anyone with “certain unpaid taxes” or “tax delinquencies”.

Section 40304 of the legislation states that any individual who owes more than $50,000 to the Internal Revenue Service may be subject to “action with respect to denial, revocation, or limitation of a passport”.

The bill does allow for exceptions in the event of emergency or humanitarian situations or limited return travel to the U.S., or in cases when any tax debt is currently being repaid in a “timely manner” or when collection efforts have been suspended.

District Court Refuses to Dismiss Claim That IRS Ties Tax-Exempt Status to Agreement With Administration's Israel Policy

TaxProf

Following up on my previous posts (links below): the U.S. District Court for the Eastern District of Pennsylvania has refused to dismiss Z Street's claim that the IRS unconstitutionally tied its application for tax-exempt status to whether the group's positions on Israel are "contradictory to those of the Administration." Instead, the court transferred the case to the U.S. District Court for the District of Columbia.  Z Street v. Shulman, No. 10-4307 (E.D. Pa. Feb. 13, 2012):

The Complaint states, inter alia, “Wherefore, Plaintiff seeks a Declaration that Defendant’s substance and application of the Israel Special Policy to any application for tax-exempt status constitutes discrimination among viewpoints and a violation of the Plaintiff’s right to freedom of speech as guaranteed by the First Amendment to the United States Constitution.”  The Court shares Plaintiff’s view that this is a case about constitutionally valid process, and finds that 26 U.S.C. § 7428 is the statute which establishes Plaintiff’s right to challenge the IRS’s 501(c) classification process. ... 26 U.S.C. § 7428 reads, in pertinent part: “upon the filing of an appropriate pleading, the United States Tax Court, the United States Court of Federal Claims, or the district court of the United States for the District of Columbia may make a declaration with respect to such initial qualification or continuing qualification.”

Prior TaxProf Blog coverage:

• NY Times: Charitable Deduction Subsidizes Israeli Settlements, Contrary to U.S. Policy (July 7, 2010)
• Lawsuit: IRS Using Bob Jones University to Deny Tax-Exempt Status to Pro-Israel Charity (Aug. 26, 2010)
• Is Failure to Support Obama Administration's Foreign Policy Grounds to Deny Charity's Tax-Exempt Status? (Nov. 24, 2010)

FBI warns of threat from anti-government extremists

Manssor Arbabsiar, one of many "Ghost Terrorism"
conspiracies concocted by the FBI

(Reuters) - Anti-government extremists opposed to taxes and regulations pose a growing threat to local law enforcement officers in the United States, the FBI warned on Monday.

These extremists, sometimes known as "sovereign citizens," believe they can live outside any type of government authority, FBI agents said at a news conference.

The extremists may refuse to pay taxes, defy government environmental regulations and believe the United States went bankrupt by going off the gold standard.

Routine encounters with police can turn violent "at the drop of a hat," said Stuart McArthur, deputy assistant director in the FBI's counterterrorism division.

"We thought it was important to increase the visibility of the threat with state and local law enforcement," he said.

In May 2010, two West Memphis, Arkansas, police officers were shot and killed in an argument that developed after they pulled over a "sovereign citizen" in traffic.
Last year, an extremist in Texas opened fire on a police officer during a traffic stop. The officer was not hit.

Legal convictions of such extremists, mostly for white-collar crimes such as fraud, have increased from 10 in 2009 to 18 each in 2010 and 2011, FBI agents said.

"We are being inundated right now with requests for training from state and local law enforcement on sovereign-related matters," said Casey Carty, an FBI supervisory special agent.

FBI agents said they do not have a tally of people who consider themselves "sovereign citizens."

We Will Never Pay, So Stop Harassing Us

Sott
Cindy Sheehan and Dede Miller

To: Whom it may concern in the Internal Revenue Service (hereafter known as IRS).

From: Cindy Sheehan, grieving mother of Spc. Casey Austin Sheehan, KIA in Iraq on 04/04/04

From: Christy (Dede) Miller, grieving aunt of Spc. Casey Austin Sheehan, KIA in Iraq on 04/04/04

RE: Recent Notices of Levy and SUMMONS to appear from the IRS to Cindy Sheehan

COPY: The American People

"How does it become a wo(man) to behave towards the American government today? I answer, that s/he cannot without disgrace be associated with it".

Henry David Thoreau

We recently have received your "Notice of Levy," and "SUMMONS."

Let us be clear why we are not paying your bill.

On April 04, 2004, three of your co-workers in the Military branch of the US government came to Cindy's home to inform us that her oldest son, Casey, had been "killed in combat in Iraq." After Cindy somehow pulled herself from the floor after falling there screaming, "NO, NO, NO!" the Grim Reapers in Army costumes didn't have much more to tell Casey's shocked and devastated family, except they asked Cindy for her Social Security number.

Let us go back a little farther than 04/04/04 - let us go back to September 11, 2001 when the US was attacked and over 3000 Americans were killed. There is much evidence that even if 9/11 was not "an inside job," there are many irregularities and lies in the "official story." Whatever happened that day, the tragedy was used to justify the illegal and supremely immoral invasions of Iraq and Afghanistan - and today, the current regime is still using the, "we were attacked on 9/11," meme to justify its crimes of aggression against, not only the people of Iraq and Afghanistan, but Pakistan, Somalia, Uganda, Yemen and Palestine (via the billions the US gives to Israel every year). Not to mention the outrageous attack on the people of Libya and recent assassination of Moammar Gaddaffi for the purpose of regime change to a more pro-U.S. corporate government.

Casey was only in the Army anyway because one of your colleagues in the Military branch lied to him and I think it's been pretty well proven that these wars embarked upon by the US were based on lies - but the confessed liars such as: Donald Rumsfeld, George W. Bush, Dick Cheney, Condoleezza Rice, Colin Powell, and George Tenet, among others, are still roaming free and profiting off of the wars through unethical connections to the war machine, books and speaking engagements. There is also much evidence that these people and other Kleptocrats just take, take, take from us and have many, many loopholes that protect them from paying too much in income taxes from their ill-gotten gains.

Another example of a war profiteer not paying any taxes is General Electric. Not only does GE realize vast profits from these illegal and immoral wars of terror that are currently being waged all over the world, but it also profits off of the highly dangerous nuclear power technology that is poisoning the planet as we speak.

GE not only did not pay any taxes for the year 2010, it received a "1.1 billion dollar tax benefit" (according to CNN Money) for its tax filings in the U.S. How did GE do this when it made a 10.8 billion dollar profit in 2010? The company recorded a loss here in the U.S. of 408 million. GE is just one company or wealthy individual that has teams of lawyers and accountants to drive trucks through the loopholes the U.S. government legislates for them. Are you saying we owe more money than General Electric?

Well, our family recorded a loss in 2004 that is priceless. How can one put a value on a human being - an oldest child - a beloved nephew? Dozens of people who knew Casey are still feeling his loss in very profound and painful ways - Cindy grew his body in her body giving him the best nutrients she could for his health - she gave birth to him after 20 hours of labor on May 29th, 1979 - she loved him and nurtured him with the milk from her own body for 14 months - she sat up with him when he was ill - she helped him with his homework and Cindy sewed his Boy Scout patches on his sash and stood with him when he was awarded his Eagle Scout Award - she sobbed when he went to war and her life was over the day his was.

IRS sharing taxpayers' personal info with foreign nations

The Examiner
Jim Kouri

Not only does the IRS treat Americans'
wealth as if it's their own, they also
treat taxpayers personal data as if they were
files from a criminal investigation.

Few Americans are aware that their personal and financial information is being given to foreign nations by the U.S. Internal Revenue Service in the name of  "getting Americans to pay their fair share." And the globalists in the U.S. government are happy to share Americans' confidential information.

With trillions of dollars in cross-border financial activity, U.S. tax authorities and others around the world exchange information with each other to administer and enforce compliance with the tax laws of their respective countries. In many cases, these information exchanges are similar to that which is exchanged in criminal cases.

Sadly, in dealing with taxpayers information, no warrants are necessary and the process disregards the U.S. system of jurisprudence that recognizes the time-honored "innocent until proven guilty."

Recently the U.S. Congress requested its investigative arm, the Government Accountability Office, to identify and describe all income tax treaties and other such agreements between the United States and other countries as well as describe the volume of exchange activity, types of information exchanged between the United States and its treaty partners, and request processing times.

In addition, the GAO was asked to identify opportunities to improve the effectiveness of current U.S. information exchange processes and procedures. GAO analyzed the international agreement documents, IRS data on information exchanges, and analysts interviewed program officials and the users of the exchanged information.

Treaties and other agreements authorizing information exchange provide tax authorities in the United States and abroad with a useful tax law enforcement tool. As of April 30, 2011, the United States had such agreements in force with 90 foreign jurisdictions, according to the GAO analysis. While such information sharing can be rationalized when dealing with transnational organized crime gangs, drug cartels and terrorist groups, many who discover this information-sharing are suspicious when it relates to law-abiding citizens who pay the taxes that pays the salaries of IRS managers and enforcers.

IRS-international agreements have many similar features, but the bounds within which information can be exchanged are unique to the legal and administrative arrangements agreed to by the United States and each partner.

Between 2006 and 2010, 5,111 requests for information to or from the United States and 75 foreign jurisdictions were completed; 4,217 were incoming requests for information such as tax returns or corporate records and 894 were outgoing requests from the United States.

IRS's enforcement presence also relies on several other methods to obtain relevant information, including a mechanism which yields about 2.1 million records annually from treaty partners. GAO estimates that most requests close about 50 to 200 days after being opened, but some take much longer. The time it takes to close requests can be influenced by factors such as the complexity of the requested information and the legal system of the treaty partner.

Dear Mr. Obama - Setting The Record Straight

WhatReallyHappened
Michael Rivero

Dear Barack

I was rather amazed to see an article earlier today in which you state your belief that 80% of Americans want higher taxes in order to reduce the government's debt. Either your staffers are misrepresenting the polling data to you, the polls are flawed, or you are driven to delusional hallucinations by the realities of the government's fiscal position. Possibly all three. But I felt it was my duty to send you this open letter correcting what appear to be several misperceptions you have regarding the present situation and how We The People truly feel about it. Because your present course risks invocation of the 25th Amendment for mental incompetence.

TAXES

First off, We The People do NOT want more taxes. We cannot afford the taxes we have now, as the epidemic of non-compliance reported by the IRS must have indicated to any unbiased observer. History has already shown that every time taxes are increased to "deal with the debt" the US government goes on a spending spree and plunges even deeper into debt. Agreeing to increases in taxes to deal with government debt is like fighting a forest fire with gasoline.

THE FEDERAL RESERVE SYSTEM

It is time to face the fact that under the present private-central banking system that loans the public currency at interest, that the government debt crisis is intentional and by design unpayable. The moment that first Federal Reserve Note went into circulation, more money was owed to the Federal Reserve than actually exists. Anything you or the bankers do to increase the money supply only increases the debt to that much greater degree. Even a child knows that if you put ten marbles into a can you can only take ten marbles out. Yet the Federal Reserve System operates on the theory that they can put ten marbles (dollars) into the tin can (the nation) and take eleven marbles out. This makes the Federal Reserve dumber than a small child, and you, Mr. Obama, dumber than both for searching through the pockets of Americans to find that eleventh marble that does not and never did exist.

The Founders of this nation recognized that such a system cannot help but drive a populace into poverty, and fought a war against Great Britain to free themselves from the Currency Act of King George III, which ordered the Colonies to only use currency borrowed at interest from the Bank of England. The Currency act had reduced the population to poverty which fueled the rage that led to revolution. Following the revolution, one of the more "revolutionary" ideas the new United States had was for the government itself to issue a value-based currency interest-free, which rapidly turned the United States into an economic power-house and created the highest living standard of any nation on Earth for its citizens. Throughout history, however, bankers, terrified that the people of other nations would wish to follow the American example, have sought to return the American people to the slavery of an interest-bearing currency. Thanks to corrupt Congresses and corrupt Presidents, the bankers have succeeded three times, with the First and Second Banks of the United States, and then the Federal Reserve System, which despite its name is still a private bank issuing the public currency at interest (It is no more "Federal" than Federal Express). Those men who sold us back into the slavery of a private banking system issuing the public currency at interest are traitors to the founding fathers of this nation, selling the free economy purchased with the blood of patriots for thirty pieces of silver.

Fortunately, America counts among its greatest Presidents men with the vision to see the trap laid by the private central bankers and the courage to free the American people from slavery.

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out." -- Andrew Jackson

Two of America's greatest Presidents, Abraham Lincoln and John F. Kennedy, both worked to free the American people from private bankers by invoking Article 1 section 8 of the Constitution, which authorizes the US Government to create and issue debt-free currency into circulation. Lincoln did it with his Greenbacks, and Kennedy did it with EO. 11110 and his United States Notes.

Mr. Obama, is your eagerness to go on borrowing money at interest from a private central bank that prints it up out of thin air purely because you lack the courage of a Lincoln or a Kennedy? Or is there some other darker motive? Because you and I know you could solve the nation's liquidity crisis with a single phone call across the street. You would not need Congress' approval. Nor would you need to try to blackmail Americans into agreeing to more debt with threats to withold Social Security payments (which you are not legally allowed to do anyway).

The fact is, Mr. Obama, that your present course is a failure. The American economy was wrecked by the mortgage-backed securities fraud; the biggest financial swindle in history, even greater than Tulip Mania, or the Great South Seas Company Bubble. Globalism spread the financial contagion unchecked across borders, turning an American crisis into a global catastrophe. Iceland had the right idea on how to deal with the situation, which was to jail the bankers whose greed and recklessness crashed their system and Iceland's economy today is unique in the western world in that it has clearly recovered and is growing steadily. You may not have heard much about it, since the new Icelandic government has refused to re-entangle itself with the IMF and hence is seen as a poor example to hold up for public view by the US media.

Lies in the Name of the Free Market

Center for Media and Democracy

A powerful advocacy organization has made a big impact on this midterm election cycle in states across the country. Americans for Job Security (AJS) has spent millions of dollars on attack ads targeting candidates they view as anti-free market. While this group believes in the free exchange of capital, they are vehemently opposed to the free exchange of information, at least when it comes to their sponsors. AJS has routinely denied requests for a list of donors. As a 501(c)(6), they do not have to reveal this information. But the IRS has stated that any 501(c)(6) group whose "primary purpose" is political activity, must name their donors. The Washington Post reports that AJS spends the vast majority of its budget on television and radio ads before elections. Groups such as Public Citizen have complained to the IRS about AJS' abuse of its tax-exempt status. But the ambiguous nature of the IRS' "primary purpose" standard has allowed AJS to continue spewing attack ads every election cycle.

Beyond the Pale

In addition to being shadowy and secretive, AJS' ads are often misleading, completely untrue, and even offensive. While attacking Congressman Zack Space, AJS stated that he voted for "job-killing energy taxes." AJS is referring to Space's vote in favor of a cap-and-trade system designed to slow global warming. While it is arguable that a cap-and-trade system will cause businesses to pass costs on to consumers, it cannot be equated to an energy tax.

AJS also accused former Colorado Lieutenant Governor and Republican Senate candidate Jane Norton of growing "the state bureaucracy by $43 million in just 3 years." While the state budget did grow by this amount during Norton's time in office, it was not because of her actions. Spending grew in Colorado because of an increase in federal funds, not because of any increases in taxes.

In a very disturbing case, AJS disseminated a television ad geared toward defeating Arkansas Senate candidate Bill Halter that has generated charges of racism. The TV spot depicts numerous Indians thanking Halter for outsourcing jobs to India. The ad's detractors have argued that the ad promotes stereotypes. In addition to being racist, the ad is not true. The Securities and Exchange Commission reported that while WebMethods did open a center in India while Halter was on the board, it had no effect on the loss of jobs in America.

Americans for Job Security joins all the other front groups springing up in the wake of the U.S. Supreme Court's ruling in Citizens United, which gave corporations the right to spend unlimited funds to influence elections. These groups allow corporations to do just that while remaining anonymous. This kind of election hanky-panky makes SourceWatch an even more important resource for voters seeking the truth about suspicious groups with "feel good" names that suddenly appear and run over-the-top attack ads against candidates.

The Cost Of Defying Obamacare: $2,250 a Month And IRS Goons Pointing Guns At Your Family

Paul Joseph Watson
Prison Planet

Tuesday, March 23, 2010

The cost of defying Obamacare by withholding compliance on your income tax return will not be for the faint hearted – families will be forced to cough up $2,250 a month while being closely scrutinized by an army of new IRS agents with fresh “combat training,” armed to the teeth with 12 gauge pump action shotguns.

“The Internal Revenue Service will function as the government’s chief enforcer for health care reform, should President Obama sign the bill into law as expected, monitoring both businesses and individuals to certify whether they have the insurance coverage the government requires,” writes Matt Cover of CNS News.

The penalties associated with defying mandatory health care are staggering. From 2014 onwards, for every month that individuals or businesses with over 50 employees fail to carry a minimum level of health insurance, they will be hit with fines of up to $750 a month for individuals and $750 per uncovered employee for businesses. For a family of four, this could amount to a whopping $27,000 a year ($2250 a month for each household).

“Because these new mandates and taxes are under the purview of the IRS, taxpayers and businesses could incur additional penalties normally reserved for normal income tax cheats, paying fees over and above those for not complying with Congress’ new mandates,” writes Cover.

The health care bill requires the IRS to monitor individuals and businesses via mandatory reporting on income tax returns. If you don’t pay up, the IRS will let loose one of their estimated 16,500 new agents, armed with shotguns and fresh “combat training,” to convince you otherwise.

The increasing transformation of tax collectors into heavily armed SWAT-like goons coincides with the passage of Obamacare, legislation which will rest entirely on its aggressive enforcement by thousands of new IRS agents sent out to harass individuals and small businesses.

Many people raised an eyebrow or two last month when the Drudge Report posted a request for quotes from suppliers for 12 gauge pump action shotguns to be submitted to the IRS. The request also mentioned the fact that IRS agents now receive “combat training”.

It seems that the increasing militarization of IRS agents isn’t simply to prepare for fleecing the many Americans who would undoubtedly stop paying their taxes should draconian austerity measures be imposed to deal with a deepening economic decline, but also to physically enforce the reality behind Obamacare – the fact that if you don’t comply with it then you’ll be treated as a tax cheat and a criminal.

When Obama’s own policy czars, people like Ron Bloom, say things like, “We kinda agree with Mao (Tse Tung) that political power comes largely from a gun,” as the federal government – even the Department of Education – arms itself to the teeth in order to enforce blatantly unconstitutional policies – is it any wonder that American citizens are purchasing firearms at record levels to defend their families from a government gone wild?

Not only will the IRS be tasked with enforcing penalties against Obamacare resistors, but they’ll also be kept busy monitoring over a dozen new taxes that will be created by the bill.

“The bill is littered with tax increases in order to fund the expansion of health coverage for Americans,” points out Business Insider, who identified 15 such increases, things like an excise tax on high cost employer-sponsored health coverage, tax surcharges on people making over $350,000 a year, as well as control freak measures like a 10% tax on payments for indoor tanning treatments.