Posted in Government stupidity, IRS, Tax Compliance, Taxation, Waste, tagged Government stupidity, Internal Revenue Service, IRS, Tax complexity, Tax Compliance on February 11, 2011 |
24 Comments »
The IRS certainly deserves lots of condemnation for its rogue actions, including a $200 fine for a taxpayer who supposedly underpaid his tax bill by 4 pennies.
But the tax-collection agency also should be criticized for blundering incompetence. In the past, I’ve mocked the Internal Revenue Service for sending checks to convicts. Now it’s time to rip the bureaucracy for its stunning failure to guard against fraud in the so-called earned income credit program. And we’re talking big bucks. Here’s a blurb from an AP report.
More than $10 billion a year in tax credits for low-income families go to people who don’t qualify for them, and the Internal Revenue Service isn’t doing enough to stop them, a government investigator said Wednesday. Using the tax agency’s own numbers, the investigator said about quarter of all earned income tax credits go to families that don’t meet the requirements. The IRS has known about the improper payments for years but has not done enough to stop them, said J. Russell George, the Treasury inspector for tax administration. From 2003 to 2009, improper payments have totaled at least $70 billion, according to a report issued by George. In 2009, between $11.2 billion and $13.3 billion was improperly paid out.
Bush and Obama have dramatically increased the IRS’s budget in recent years, but that money obviously is not being put to good use. The time has come to downsize the IRS. This video provides plenty of evidence.
Read Full Post »
This is the type of story that makes me sick to my stomach. I’ve already commented on how I don’t like redistribution from rich to poor, but I really, really hate redistribution from poor to rich. And that’s exactly what happens when taxpayers subsidize the presidential nominating conventions of the two big political parties.
Republicans claim to be on the side of taxpayers, but read this story from the Tampa newspaper to get a flavor for how the Republican National Committee was wasting our money.
They rented an exclusive waterfront mansion, wined and dined at five-star restaurants and hired family members and friends, all on the taxpayers’ dime. …Recently filed Federal Election Commission records show that Steele’s convention team, which was headed by Belinda Cook, his long-time personal assistant, spent most of a $1 million line of credit to the RNC’s Committee on Arrangements. That loan was backed by $16 million in federal funds the committee will receive for convention security next year. …Since the 1970s, the federal government has subsidized both the Republican and Democratic party conventions as part of the public financing program for presidential campaigns. Parties can use the money for any legitimate political expenses.
Political conventions are largely four-day parties for political hacks and lobbyists. And even if they were serious affairs, taxpayers should not be subsidizing private political organizations. Republicans and Democrats should be able to nominate candidates without reaching into my wallet…or your wallet.
Read Full Post »