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The GOP rebrands itself as the party of tax cheats


homersapien

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(emphasis mine)
 
10-21-21

Once upon a time, Republicans portrayed themselves as the party of small government and family values. Recently, though, GOP leaders have been cobbling together a new coalition, welcoming insurrectionists, white-nationalist tiki-torchers and people who think Bill Gates is trying to microchip them.

The latest recruit to the Big Tent? Tax cheats.

Here’s the backstory. Each year, about $600 billion in taxes legally owed are not paid. For scale, that’s roughly equal to all federal income taxes paid by the lowest-earning 90 percent of taxpayers, according to Treasury Department data.

These unpaid taxes — often called the “tax gap” — are predominantly owed by wealthy individuals. The richest 1 percent alone duck an estimated $163 billion in income taxes each year.

To be clear, rank-and-file wage-earners are not necessarily more honest or patriotic. It’s just much harder for them to shortchange Uncle Sam.

Workplace grunts have taxes automatically withheld from their paychecks. And, critically, most labor-related income — as well as income from dividends, interest and other sources — gets reported to the Internal Revenue Service through W-2s, 1099s and other common tax documents.

So it’s difficult to sneak unpaid liabilities past the IRS.

There are some types of income, however, for which little or no third-party reporting exists. These income categories — including partnership, proprietorship and rental income — accrue disproportionately to high earners. The government has much less ability to tell when these filers are misreporting; as a result, they can more easily get away with cheating.

And some of them do.

This is evident from IRS data on “voluntary compliance,” or how accurately people report their income and tax liabilities without the government having to come after them. When it comes to ordinary wage and salary income, taxpayers are remarkably forthcoming, with noncompliance averaging only 1 percent; for those more “opaque” income sources, noncompliance is an estimated 55 percent.

Tax cheating is not a victimless crime. When (disproportionately high-income) people don’t pay their bills, everyone else must pay more to fill the shortfall.

One solution is to have the IRS conduct more audits. Audit rates for big corporations and high-income individuals should be higher, given that tax enforcement has plummeted as the IRS has been starved of resources.

But indiscriminately increasing audit rates alone is unlikely to solve the problem, and might irritate a lot of honest taxpayers in the process.

Not all high-income people (or people with rental or partnership or other “opaque” income) are cheating, of course. A more effective response would involve more of that third-party reporting so the IRS has greater visibility into who’s likely fudging their numbers. Then the agency could better target its audit decisions.

More reporting would also deter would-be tax cheats from fudging in the first place, because they’d know they’re more likely to get caught.

This solution is exactly what Democrats have proposed as part of their big budget bill.

Financial institutions already report certain information to the IRS about their clients’ accounts, such as interest income accrued over the year. Under Democrats’ latest proposal, banks would — once a year — also report the sums of all deposits and withdrawals for certain accounts. Not every transaction; just the year-end totals. Only accounts with flows of more than $10,000 not tied to wage income or exempted benefits would be affected — the idea being that the IRS already knows about the wage income anyway.

The reporting proposal is estimated to bring in $200 billion to $250 billion in revenue over the next decade, according to Treasury.

This is revenue that would be collected without having to raise a single tax rate, which you’d think Republicans would applaud. Instead, the GOP, backed by the bank lobby, has fought every version of the reporting policy tooth and nail.

Just as they did with Obamacare “death panels,” Republicans have megaphoned misinformation. They allege that Democrats would create a Marxist “surveillance program designed to target low- and middle-income earners” (false) in which the government would “monitor every single transaction you make” (false) with “no limits” (definitely false).

“Democrats want to track every penny you earn so they can then tax you and your family at the maximum possible amount,” fearmongered House Minority Leader Kevin McCarthy (R-Calif.). This is an interesting euphemism for “rich people are going to pay the minimum amount of taxes the law already requires.”

The GOP seeks to exploit the confusion of honest, rank-and-file taxpayers. Their income is already quite well reported to the IRS: Three billion 1099 forms alone will be issued this year, and Americans haven’t considered this a “dragnet” or “infringement on personal privacy.” But suddenly it is — when similar reporting is proposed to ensure high-income people’s tax compliance, too.

Republicans also presumably have another shameful aim: communicating to tax cheats that, now and in the future, the GOP has their backs.

https://www.washingtonpost.com/opinions/2021/10/21/gop-rebrands-itself-party-tax-cheats/

Edited by homersapien
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I will just leave this here.........

Democrats are hypocrites when it comes to paying taxes

BY JONAH GOLDBERGCOLUMNIST 

During the presidential campaign, Joe Biden insisted that paying your taxes is a patriotic duty. No, scratch that. He said that supporting a tax hike was the American thing to do. “It’s time to be patriotic,” he told America’s putative tax slackers. When asked whether he might be questioning the patriotism of people who don’t want higher taxes, Biden, as is his wont, took things to the next rhetorical level. Forget patriotism, insisted Joe, paying higher taxes is a religious obligation.

The man who gave an average of $369 a year to charity over the previous decade fulfills his religious obligations by cutting a tax check -- a check he’s required to cut by law.

Now it’s always perilous to take Biden’s statements too seriously, but it does seem eminently fair to say that his comments reflect a common, if not universal, attitude among Democrats. Taxes aren’t a “necessary evil” so much as a joyous affirmation of the possibilities of government and the lifeblood of a more hopeful society. “Taxes are what you pay to be an American” -- like “membership fees,” says Democratic language guru George Lakoff.

President Obama merely says that taxes are necessary to “spread the wealth,” which is better for everybody. New York Times columnist Paul Krugman frames the issue more reasonably: “Nobody likes paying taxes ... [but] most Americans also care a lot about the things taxes pay for.” In other words, paying taxes -- and raising taxes in Krugman’s view -- is the adult, serious, morally responsible thing to do. Government needs every last penny, and holdouts must be smoked out.

 

Now, whatever the best articulation of liberal attitudes toward taxation may be, reasonable people can agree that they inject a lot of moralizing, righteousness and finger-wagging into the issue.

As one leading Democrat put it: “Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter.”

That Democrat was then-Sen. Tom Daschle in 1998. The same Tom Daschle, we’ve since learned, who failed to pay more than $100,000 in back taxes for perks he received as one of Washington’s most relentless influence-peddlers -- that is, until he realized he might receive a job in the Obama administration spending the money most Americans conscientiously send to Washington.

Daschle’s hardly alone. The recently confirmed Treasury secretary, Timothy F. Geithner, also failed to pay taxes he owed (even though he surely must have known he owed them) until it became politically expedient to pay them. Now he runs the IRS. Take that, suckers.

 

Meanwhile, Rep. Charles B. Rangel (D-N.Y.), the chairman of the supreme tax-writing body in the United States, the House Ways and Means Committee, is under investigation for, among other things, dodging taxes. His excuse for his admitted mistakes is that he was sloppy and ignorant, but not criminal. Geithner and Daschle make similar noises.

But doesn’t that miss the point?

When moralizing conservatives get caught, say, cheating on their wives or challenging stall mates to robust Greco-Roman wrestling in airport bathrooms, liberals justifiably howl at the hypocrisy of it all (even though conservative moralizing has no teeth, while the IRS has agents with guns). When liberals fail to pay taxes -- the wellspring of a just society -- it’s merely, to borrow an old phrase from Daschle, “sad and disappointing,” but ultimately not that big a deal.

When he was still running the Democratic Party, Howard Dean made fighting hypocrisy his top priority. “Hypocrisy is a value that I think has been embraced by the Republican Party. We get lectured by people all day long about moral values by people who have their own moral shortcomings.”

Well, I hear a lot of lecturing from Democrats about why I should be ashamed for not liking taxes more because “the children” need it. Florida Democratic Rep. Alan Grayson defended the so-called stimulus bill last week by saying it “shelters the homeless, and heals the sick. It helps us to look forward to a day where we beat our swords into plowshares.”

By the Democrats’ own logic, not wanting to pay for that is selfish, unpatriotic and immoral. But who do they think tax cheats are cheating?

“I will use whatever position I have in order to root out hypocrisy,” Dean promised. “I’m not going to be lectured as a Democrat -- we’ve got some pretty strong moral values in my party, and maybe we ought to do a better job standing up and fighting for them.”

Yes, I would like to see that myself. That would be change I could believe in.

Democrats are hypocrites when it comes to paying taxes - Los Angeles Times (latimes.com)

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And this too........

Dems dominate tax-cheat list

  •  
    •  Updated 
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At tax time, the Daily Beast website wanted to know who has had the worse tax problems over the years &tstr; Democrats or Republicans. Guess what it found?

Democrats, take a bow.

The website reviewed hundreds of news reports going back to the 1990s to find which political party had the most tax offenders, and came up with a list of 25 politicians who have been embroiled in tax scandals over the past two decades.

 

The website ranked the politicians &tstr; 3 points for a tax offense; 1 point for a misdemeanor tax offense or ethics conviction; .5 for a felony tax indictment; .25 for misdemeanor tax indictment.

Also, the level of public office was taken into account &tstr; 1 point for a state legislator or mayor; 3 for a U.S. representative, statewide official or federal lobbyist; 5 points for a governor or presidential nominee.

(Note: The list focuses on politicians' tax troubles, not any other form of political corruption.)

The results?

Democrats have had the most tax scandals by a wide margin &tstr; 16 to 9. (Incidentally, three notorious Pennsylvania politicians made the list.)

At the top of the list is Nicholas Mavroules, a Democratic U.S. representative from Massachusetts, who pleaded guilty to six counts of tax fraud &tstr; the most of any scofflaw on the list. He was given a year in jail and fined $15,000.

 

The next six spots are held by Democrats, including long-time Pennsylvania State Sen. Vincent Fumo (No. 7). Fumo was convicted in March 2009 on 137 felony charges, including tax fraud and corruption. Fumo used a nonprofit group he headed to finance a lavish lifestyle. He is serving a 55-month prison sentence.

Republicans occupy the next five spots &tstr; No. 8 to No.12. They include Jack Abramoff (No. 11), the high-profile Washington lobbyist who was convicted of tax fraud. Abramoff was sentenced to nearly six years in prison.

Democrats take up No. 13 through No. 18. Among them is U.S. Rep. Charles Rangel, of New York, who faced a laundry-list of ethics violations. Rangel was never charged criminally, but he was convicted by a House ethics panel of 11 violations. One included not paying $60,000 in taxes on rent collected from a villa he owns in the Dominican Republic.

Positions 19 and 20 are held by Republicans, including F. Joseph Loeper, a Pennsylvania Senate Majority Leader who pleaded guilty to falsifying his taxes. A tax collection company had paid Loeper more than $300,000 in consultant fees while he was still in public office. He was sentenced to six months in prison and fined $20,000.

The No. 21 spot belongs to Democrat Frank J. Gigliotti, a Pennsylvania state representative who admitted to accepting tens of thousands of dollars in cash bribes and gifts from contractors and lying on his taxes. He was given nearly four years in prison.

No. 22 is a Democratic state senator from Missouri; No.23, a Republican U.S. representative from California; No. 24, a Democratic state senator from New York; and No. 25, a Republican state representative from Colorado.

"Republicans and tea partiers tend to shout the loudest when it comes to tax reform, and they're also the most law abiding &tstr; when it comes to paying their taxes, anyway," observes The Daily Beast.

Most politicians &tstr; Democrat or Republican &tstr; pay their taxes. But the corrupt ones, like those on this list, give all politicians a bad name.

Dems dominate tax-cheat list | Our Opinion | lancasteronline.com

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I don't think anybody wants the government monitoring their bank account transactions down to $600.  That pretty much gets everybody. To imply that only republicans don't want this is laughable. Only democrats in power are in favor of this. As evidenced from the above article. I've read Rampell weekly in our local mullet wrapper. She is pretty but radically left.  This is a bad thing and as most government programs will not produce the windfall Biden thinks it will. But hey if it can fleece some money from crack addicted starving artists, maybe it is worth it.

Edited by jj3jordan
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Just now, wdefromtx said:

Might want to do a little research of your own party...........something about throwing rocks in a glass house comes to mind.

You're missing the point. You're confusing personal actions with policy and desired outcomes. 

 

Democrats are trying to make it harder for people like them to get away without paying their correct taxes. They WANT to re-fund and modernize the IRS, they want to grow the IRS so that its harder for corporations, the wealthy, and the elites to get away with tax dodging. The Republican's are absolutely against all of it. Republicans want the IRS weak and to make it almost impossible for the rich to be audited and to be forced to pay what they legally should. Republicans spin it saying "oh , Dems just want to strengthen the IRS to come after the poor hardworking Americans", when in reality the opposite is true. The IRS currently enforces tax laws more heavily against the working and middle class populations because auditing them is vastly easier, faster and cheaper for the IRS than auditing and monitoring the wealthy and Corporations who use increasingly complex investments and money management to hide their sources of income. The IRS admits that it audits regular Americans more because it doesn't have the staffing or resources to handle complex audits.  

 

Yes, some Democrats are tax cheats and don't pay their fair share....that's correct...but it doesn't justify or excuse Republicans who want to continue to make it easier and easier to do so. Democrats are proposing changes to fix the IRS. The Republicans soundly oppose it...those are the facts...it's not a "both sides" issue when one side is offering solutions and fixes while the other is voting against it and saying everything is fine the way it is. 

 

 

 

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41 minutes ago, wdefromtx said:

I will just leave this here.........

Democrats are hypocrites when it comes to paying taxes

 

That's a pretty weak rebuttal considering the OP is about passing actual legislation to address the issue or tax avoidance.

I am sure there are plenty of Democrats who take advantage of the current situation both past and present.  But proposed new legislation will apply to them too, unless the Republicans block it.

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51 minutes ago, wdefromtx said:

Might want to do a little research of your own party...........something about throwing rocks in a glass house comes to mind.

How is pointing out the FACT Republicans are BLOCKING tax reform meant to address this problem in the future "rock throwing"???

This is about actually addressing the problem by giving the IRS the tools to do their job. 

It's not about who's the most guilty of evading taxes they owe. At least we now have a POTUS who doesn't frame tax cheating as something to admire.

(And it's not "my" party.)

Edited by homersapien
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Freedoms are hard to get back once given up.  Republicans understand this, Democrats want more power and freedoms are getting in the way.  You can get more revenue from taxes other ways then to intruding into peoples bank accounts for every $600 transaction.

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1 minute ago, I_M4_AU said:

Freedoms are hard to get back once given up.  Republicans understand this, Democrats want more power and freedoms are getting in the way. 

No, we want to refund and strengthen the IRS to enforce the laws and rules that already exist. 

 

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6 minutes ago, I_M4_AU said:

Freedoms are hard to get back once given up.  Republicans understand this, Democrats want more power and freedoms are getting in the way.  You can get more revenue from taxes other ways then to intruding into peoples bank accounts for every $600 transaction.

Paying ones legal taxes is not a "freedom" to give up.  It's an obligation one has in support of their country.

But I agree about the $600 limit.  That's ridiculous.  I seriously doubt that particular would have survived (which you probably realize).

Edited by homersapien
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22 minutes ago, homersapien said:

Paying ones legal taxes is not a "freedom" to give up.  It's an obligation one has in support of their country.

But I agree about the $600 limit.  That's ridiculous.  I seriously doubt that particular would have survived (which you probably realize).

The freedom I was talking about was the freedom from the government to look into any transaction of $600 and yes it will probably not survive.  The alarming thing is that it was even suggested.  You are obligated to pay taxes (after 1913), but you have no obligation to pay anything other than what the tax code covers.  If you can lessen your burden of taxes by following the law, good on you.

If corporations are paying zero taxes, well it must be legal.  Changing that tax code will change the way corporations do business and Joe has no idea how they will do it.  Jen Psaki, foolishly stated, if corporations raise prices because of higher taxes, the American people will not stand for it.  This is how out of touch this administration is.

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1 hour ago, homersapien said:

How is pointing out the FACT Republicans are BLOCKING tax reform meant to address this problem in the future "rock throwing"???

This is about actually addressing the problem by giving the IRS the tools to do their job. 

It's not about who's the most guilty of evading taxes they owe. At least we now have a POTUS who doesn't frame tax cheating as something to admire.

(And it's not "my" party.)

Washington is just a dog and pony show, both sides like to propose legislation that they know the other side will not go for.  Do you really think that dems in power want to change the system that they themselves take full advantage of as well? Not likely, even when the tax code has been changed they still keep loopholes in that they can use. 

This is just another way to try to act like they are the good guys and the other guys are just blocking it. We've seen the republicans do this same show as well. 

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2 hours ago, wdefromtx said:

Washington is just a dog and pony show, both sides like to propose legislation that they know the other side will not go for.  Do you really think that dems in power want to change the system that they themselves take full advantage of as well? Not likely, even when the tax code has been changed they still keep loopholes in that they can use. 

This is just another way to try to act like they are the good guys and the other guys are just blocking it. We've seen the republicans do this same show as well. 

Nihilism is a poor way to deal with life IMO.

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11 minutes ago, homersapien said:

Nihilism is a poor way to deal with life IMO.

It isn't nihilism, it's being realistic. You will have better luck believing in Santa or the Tooth Fairy than believing that our politicians actually want to solve problems......

Edited by wdefromtx
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3 minutes ago, wdefromtx said:

It isn't nihilism, it's being realistic. You will have better luck believing in Santa or the Tooth Fairy than believing that our politicians actually want to solve problems......

That's exactly what makes a nihilist.  Their belief that it's "realistic".

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5 minutes ago, homersapien said:

That's exactly what makes a nihilist.  Their belief that it's "realistic".

You obviously don't know what the true definition of nihilism. I am cynical of our politicians, which would make this cynicism. You said the other day the younger people on this board were nihilists....think about that for a second. We are cynics because our politicians haven't shown us much otherwise in our lifetime. Distrusting our politicians is no worse than trusting them. 

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8 minutes ago, wdefromtx said:

You obviously don't know what the true definition of nihilism.

Well, show me your definition and let's see if I recognize it. 

 

8 minutes ago, wdefromtx said:

I am cynical of our politicians, which would make this cynicism. You said the other day the younger people on this board were nihilists....think about that for a second. We are cynics because our politicians haven't shown us much otherwise in our lifetime. Distrusting our politicians is no worse than trusting them. 

Sounds to me like you have given up on America. 

To be honest, I am getting very close to the same place.  I think our system of government is no longer working.  We need to revise our constitution to fix that. 

But meanwhile,  I'll be damned if I am going to reject out of hand every single effort to improve upon it, which is exactly what you are doing here. 

Edited by homersapien
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36 minutes ago, homersapien said:

Well, show me your definition and let's see if I recognize it. 

I associate nihilism that basically everything in existence is worthless, useless, pointless, etc. 

Which is why I say I am more cynical than anything regarding our politicians.

38 minutes ago, homersapien said:

Sounds to me like you have given up on America

Not even close, however I don't have much faith in the people that are steering the country's government. For too long they have been self serving and greedy. 

If either side has any real intention of fixing things they will take off their party hats and try to find real compromise, until then what we are left with is two parties bickering trying to make the other party the enemy. It used to be about balance and compromise to make sure this country stayed somewhere centered, but now each side won't be satisfied until they drag the whole country off their cliff. 

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5 hours ago, CoffeeTiger said:

No, we want to refund and strengthen the IRS to enforce the laws and rules that already exist. 

 

Except the new ones being crafted. ;) 

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BOTH PARTIES ARE HYPOCRITES!!!! NEWS AT 11.

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38 minutes ago, autigeremt said:

BOTH PARTIES ARE HYPOCRITES!!!! NEWS AT 11.

https://www.washingtonpost.com/business/2021/07/07/irs-taxes-budget-conservatives/

Except it's specifically Conservative PACS and lobbyist and Republican lawmakers who are opposing increases to the IRS budget. 

 

You can all scream endlessly about how Democrats dodge taxes too, but the issue is that it's Republicans and conservatives who are completely against IRS funding and strengthening...even if no new laws are introduced. 

Democrats are proposing increased budgets and hiring more agents and replacing old technology, and the Republicans don't approve of any of it. 

Edited by CoffeeTiger
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A flat income tax, or even a VAT, could fix this.  But, as others stated, nobody in either party wants to fix it.  It's all about power.

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5 hours ago, wdefromtx said:

I associate nihilism that basically everything in existence is worthless, useless, pointless, etc. 

Which is why I say I am more cynical than anything regarding our politicians.

Not even close, however I don't have much faith in the people that are steering the country's government. For too long they have been self serving and greedy. 

If either side has any real intention of fixing things they will take off their party hats and try to find real compromise, until then what we are left with is two parties bickering trying to make the other party the enemy. It used to be about balance and compromise to make sure this country stayed somewhere centered, but now each side won't be satisfied until they drag the whole country off their cliff. 

OK. How about political nihilist? 

How do you think we get to where you think where you think we should be politically, short of a revolution?

Personally, I have gotten to the point where I am OK if we go off the cliff.  Re-elect Trump!  Repeal Roe v. Wade!   

Do it.

I'll be fine regardless.

 

 

Edited by homersapien
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