mykeystrokes.com

"Do or Do not. There is no try."

“Crossing The Line”: Tea Party Group Protesting IRS Has History Of Questionable Political Involvement

Tea Party Patriots, originally formed as a 501(c)(4) non-profit corporation in 2009, has a history of questionable electoral activity.  Nevertheless, as one of the largest of the movement’s national factions, it is taking advantage of the so-called IRS scandal to re-ignite the anger of Tea Partiers, encourage their (false) sense of victimhood, and increase their ranks.

Dubbed “Rein in the IRS,” nationwide rallies were organized to protest IRS scrutiny of Tea Party non-profit applications. The announcement, posted on the group’s website Monday, called for “anyone and everyone to protest the IRS’ complete abuse of power” at noon local time on Tuesday. Dozens of local Tea Party Patriots chapters around the country emailed their members about the protests.

The Tea Partiers claim that “the IRS has waged a three-year war against the Tea Party, harassing our groups and even auditing our individual members. This abuse of power is unacceptable and un-Constitutional, and it must stop.” No mention was made of the Inspector General’s findings that that not a single Tea Party group has been denied 501(c)(4) non-profit status, and that more than two thirds of the scrutinized Tea Party-like groups had engaged in political activity that would usually disqualify them.

The effort is also being used to fuse anger over several different political issues, from the Affordable Care Act to immigrants. For instance, in sample Letters to the Editor they distributed, the group links the IRS controversy with their attack on comprehensive immigration reform. “The IRS’s abuse of power highlights why the Senate needs to slow down with its amnesty bill. We simply cannot trust bureaucrats to make the right decisions. Immigration policy is too complex and too important for us to delegate to a group of bureaucrats who may be pursuing an agenda that doesn’t match Americans’ best interest.”

It should be noted that until late Monday, the Tea Party Patriots were using the official group website listed on their IRS form 990, and the resources of their 501(c)(4), plus their network of local groups—many of which have filed for 501(c)(3) or 501(c)(4) status)—to organize the protests against the IRS. Suddenly Monday evening, after a day of soliciting volunteers to organize anti-IRS protests, all traffic to the group’s domain name teapartypatriots.org was directed to the group’s political action committee, The Tea Party Patriots Citizen Fund (http://teapartypatriotscitizensfund.com), which features a “protest the IRS” page alongside a photo of Tea Party Patriots co-founder, Jenny Beth Martin.

The new PAC was formed in January 2013. Despite the current enmeshing of the 501(c)(4) and the PAC on the IRS protests, forms filed with the Federal Elections Commission curiously state that the PAC has no connected organization.

The sudden crossover to the group’s political action committee may be at least a tacit omission of questionable activity for a 501(c)(4) non-profit organization. It also begs the question as to why any Tea Party groups so focused on politics would want to be a non-profit rather than a PAC.

Such concern about crossing the line and engaging in political activity was absent from the Tea Party Patriots, Inc. a year ago when the group threw its support behind Wisconsin governor Scott Walker in his recall election.

As IREHR noted last year, Tea Party Patriots, Inc., which registered with the IRS as a 501(C)(4) non-profit organization, may have run afoul of its tax exempt status with this electoral activity.  Federally registered non-profit organizations with a 501c4 status are prohibited from devoting a majority of their energy and resources to support electoral campaigns.

On April 29, 2012, local Tea Party Patriots groups across the country voted 98 percent to 2 percent to throw all their energy and resources into Wisconsin for the recall elections. “We are deploying hundreds of volunteers into each of the targeted recall districts,” noted Tea Party Patriots co-founder Jenny Beth Martin in an email to supporters. “That’s 4,000 patriots going door to door and making phone calls” she added.

Tea Party Patriots brought activists to Wisconsin and did door-to-door canvassing, and had others make calls from their homes and spread the word on social media. Some of those activists were sponsored, with their costs covered by Tea Party Patriots.

At times, Martin and other Tea Party Patriots leaders have tried to suggest that the group was just engaged in GOTV (Get Out the Vote) efforts or some form of civic engagement, other times they’ve told their supporters that they’re directly intervening politically: “Tea Party Patriots—in conjunction with other local and national Tea Party groups—will spearhead efforts to help Walker and other candidates.”

There is also a question as to whether the funds of the group are going to “social welfare” as required. In 2010, the organization raised $12 million in fiscal 2010. But only about $3 million of that went to its “social welfare” mission, according to an IRS 990 form filed in May 2012. For fiscal year ending May 31, 2012, Tea Party Patriots raised over $20 million, but spent just $5.9 million on program service. Millions of dollars went to pay professional telemarketing firms, extensive travel costs, and legal fees from suing other Tea Party groups over control of the “Tea Party” brand.

Tea Party Patriots leader Martin has had her fair share of troubles with the IRS before. As noted in Tea Party Nationalism, according to court documents, Martin and her husband, Lee Martin (who served at the group’s “assistant secretary” and was intimately involved in the group’s financial matters), owed over $680,000 in tax debt, including over half a million dollars to the Internal Revenue Service, when the pair filed for bankruptcy in August of 2008.

Whether or not Tea Party Patriots, one of the largest national factions, can turn this scandal into a chance to regain lost ground will, in some measure, depend on the reception their protests receive by an informed public.

 

By: Devin Burghart, The National Memo, May 23, 2013

May 24, 2013 Posted by | Internal Revenue Service, Tea Party | , , , , , , | Leave a comment

“Separate But Unequal”: Why Do We Tax Ourselves Today So Apple Can Pay Its Taxes Someday?

The richest of the rich are different from you and me because instead of paying taxes, Congress lets them pay interest.

This little-known difference was on full display before the Senate Permanent Investigations subcommittee this week, though you would hardly know that from the news reports of testimony by Apple CEO Tim Cook and his top finance and tax executives.

The reality is that America has two income tax systems, separate and unequal. And as with all such separate and unequal systems, the powerful benefit by sticking everyone else with the costs.

The system is so unequal that corporate tax departments at the biggest multinationals have been transformed from cost centers into what Enron called its tax office: a profit center.

To most Americans, taxes are an expense. The idea that a tax can make you richer may seem hard to believe, but as the Apple executives showed in their testimony, it is standard operating procedure these days.

But instead of reporting this, we got mostly fluffy political stories. The New York Times account was typical, focusing on how Cook so charmed senators he had them “practically eating out of his hand.”

What Apple is really doing is eating your lunch.

Let’s start with how Congress taxes most people. It does not trust them to report their incomes in full or to pay their taxes, and with good reason since numerous studies show that a third or more of self-reported income simply does not get written down on income tax returns.

We all know this as the “underground economy” of people who get paid in cash; clean pools, cut grass or sell another type of grass. (Many drug dealers, however, report their incomes in full knowing that if they get caught dealing and cheating on their taxes their prison terms will be longer.)

People who work, and pensioners, have their taxes taken out of their checks before they get paid — which is why we call the shrunken cash that we pocket “take-home pay.”

Because Congress also does not trust workers and retirees to report their incomes in full, it requires their employers and pension plans to verify how much they make. The Social Security Administration adds up all the W-2 wages-paid forms for people with any paid work. In 2011 there were 151,380,759 people who earned  $6,238,607,249,941.26, which would usually be written up as $6.2 trillion.

Congress also says you can defer tax on money you save in a 401(k) plan if your employer offers one, a maximum of $23,000 for older workers. If you do not have a 401(k) you can save no more than $6,000 this year and pay taxes when you withdraw.

In other words, you get fully or almost fully taxed when you earn.

But Apple operates under very different rules. At the end of March it has more than $102 billion of mostly untaxed profits. If Apple were a worker it would have paid the federal government $36 billion in taxes.

Instead of paying taxes, Apple has taxes that are deferred for as long as it chooses.

In total, I estimate from corporate disclosure documents, American multinational companies have $2 trillion of untaxed profits offshore because they did just what Apple has done.

Had Congress required those companies to pay up last year it would have been the equivalent of all the income taxes paid by everyone in America from January until July 10. Imagine that, all the income taxes taken out of your pay or pension from January into the middle of summer just so Apple and other multinational companies can profit today and pay their taxes someday.

The $700 billion of income taxes that would have come due without deferral would also have reduced the federal budget deficit last year by more than two-thirds. Instead, the federal government borrowed a little more than a trillion last year to pay its bills.

In effect the federal government loaned Apple the $36 billion in deferred taxes at zero interest. Imagine how rich you would be if you could keep all the income taxes withheld from your paycheck this year and then pay the money, interest-free, 30 years from now.

Because taxes deferred are at zero interest, inflation erodes the value of the taxes owed. If Apple waits 30 years and then chooses to pay its taxes the government will get the equivalent of 40 cents on today’s dollar, assuming 3 percent annual inflation.

Meanwhile, Apple will be investing that $36 billion, earning interest. If it earns 3 percent in 30 years, it will have more than $87 billion.

Now jump forward to 2043. Apple pays $36 billion in taxes from its $87 billion cash pile, leaving it with $51 billion after taxes in 2043 dollars.

As advisors to the very wealthy teach their clients, deferring a tax for 30 years is the functional equivalent of not paying any tax.

In the textbook version of events, that huge pile of untaxed profits that Apple keeps offshore cannot be put to work in America. In reality here is what happens:

—Apple has its tax haven subsidiary deposit the money in the United States at a too-big-to-fail-bank, eliminating any risk of loss it would incur with smaller banks.

—Apple has the American bank buy U.S. Treasury bills, notes and bonds so that its untaxed profits, which force the government to borrow, earn interest.

—Apple can also borrow from itself, making short-term loans from its many separate piles of untaxed offshore profits to fund any operational needs in the U.S.

—Rather than tap its $102 billion of offshore cash, Apple sold corporate bonds for periods of up to 30 years at less than 2 percent interest.

As Cook explained to the senators, why pay taxes at 35 percent when you can borrow at 2 percent? Cook is right from a financial perspective. At 2 percent, the interest on the interest, measured to infinity, will never equal the 35 percent taxes avoided.

But here is the best part of the whole deal, which Cook and Peter Oppenheimer, Apple’s chief financial officer, explained to the senators, but the news media neglected to report.

Apple turns some of the profits it earns inside the U.S. into tax-deductible expenses, which it pays to its offshore subsidiaries.

Now, if you move a dollar you earned from your right pocket to your left, nothing significant happens. Your wealth is unaffected and your tax bill is unchanged.

But Apple and other multinationals have an American right pocket, from which they pull cash to put in their Irish, Cayman Islands, Singaporean and other left pockets. When they do that the profit goes poof on their tax return and a tax deduction gets added.

Accountants use black ink to show profit, and red for losses and expenses. This modern accounting scheme is what the alchemists of old sought, hoping to turn lead into gold. But unlike the fictional philosopher’s stone, this alchemy works.

So, to review, you get taxed before you get paid and can set aside only modest sums with the taxes deferred until your old age.

Apple and its corporate peers get to earn profits now, but pay taxes decades into the future and possibly never, while earning interest on the taxes it defers into the future — interest you must finance as a taxpayer through higher taxes, reduced government services or more federal debt.

The one place Apple cannot escape taxes is on the interest it earns on its untaxed hoard of offshore cash, as Apple’s top tax officer, Phillip Bullock emphasized to Senator Carl Levin, the Michigan Democrat who chairs the investigations panel.

Levin’s staff, its reports issued with bipartisan support, also found that Apple did owe some foreign taxes on profits it earned overseas.

It pays the Irish government a corporate tax rate of 2 percent under a deal made in 1980 when it was a pipsqueak company. On some other earnings its tax rate is 0.05 percent – that is a nickel on each $100 of profit.

Rich individuals – very, very, very rich individuals – get to do the same thing: earn now and be taxed much later, if at all, by paying interest on borrowed money instead of paying taxes.

There are different techniques to defer, delay and escape paying income taxes for executives, business founders, managers of hedge and private equity funds and movie stars, all of which will be explained in future National Memo columns.

One of these techniques explains in good part why companies have been slashing health and retirement benefits for workers – because it masks the real costs of letting executives earn now and pay taxes either later or never.

Another explains why Mitt Romney was never going to release his income tax returns for the years he ran Bain Capital Management, the private equity fund that made him rich.

But the bottom line is the same – America has two tax systems, separate and unequal. There is a word to describe such systems: un-American.

There is also a question to ask: Why do we tax ourselves today so Apple can pay its taxes someday?

 

By: David Cay Johnston, The National Memo, May 23, 2013

May 24, 2013 Posted by | Congress, Taxes | , , , , , , , | Leave a comment

“It’s All Your Fault”: Federal Reserve Chair Calls Out Congress For Being The Drag On The Economy

The stock market is testing new highs, the unemployment rate is declining and consumer confidence is at a six-year peak, but the Federal Reserve chairman Ben Bernanke wants Congress to know that things could be a lot better.

Testifying Wednesday in front of the Joint Economic Committee of Congress, Bernake pointed out that the economy has been improving, but one obstacle is keeping a real recovery from sparking — them:

“Most recently, the strengthening economy has improved the budgetary outlooks of most state and local governments, leading them to reduce their pace of fiscal tightening. At the same time, though, fiscal policy at the federal level has become significantly more restrictive. In particular, the expiration of the payroll tax cut, the enactment of tax increases, the effects of the budget caps on discretionary spending, the onset of the sequestration, and the declines in defense spending for overseas military operations are expected, collectively, to exert a substantial drag on the economy this year.”

President Obama was able to delay serious austerity — tax increases paired with budget cuts — from coming into effect until this year. This delay has given housing a chance to recover, as evidenced by strong recent earnings from The Home Depot.

However, there’s no doubt that the payroll tax holiday, which Republicans never considered extending, is affecting every America who lives paycheck to paycheck. The sequester will take $85 billion and 750,000 jobs out of the economy this year. Even the ending of the Bush tax cuts on income over $400,000 will take some steam out of the economy, though tax breaks for the rich have the least stimulative benefit for the economy.

Bernanke points out that the biggest problem with the sequester is that it has no real effect on the actual problem this country faces — the long-term deficit.

“Although near-term fiscal restraint has increased, much less has been done to address the federal government’s longer-term fiscal imbalances,” he said. “Indeed, the [Congressional Budget Office] projects that, under current policies, the federal deficit and debt as a percentage of GDP will begin rising again in the latter part of this decade and move sharply upward thereafter.”

Basically, Bernanke is echoing what New York Times‘ columnist Paul Krugman has been saying for years: Get the economy going, then worry about long-term fixes.

 

By: Jason Sattler, The National Memo, May 22, 2013

May 24, 2013 Posted by | Congress, Economy | , , , , , , , | 1 Comment

“Lost In The IRS Scandal”: The Need To Know Facts About The Big Picture And Big Donors Of Dark Money

In the furious fallout from the revelation that the IRS flagged applications from conservative non-profits for extra review because of their political activity, some points about the big picture – and big donors — have fallen through the cracks.

Consider this our Top 6 list of need-to-know facts on social welfare non-profits, also known as “dark money” groups because they don’t have to disclose their donors. The groups poured more than $256 million into the 2012 federal elections.

1. Social welfare non-profits are supposed to have social welfare, and not politics, as their “primary” purpose.

A century ago, Congress created a tax exemption for social welfare non-profits. The statute defining the groups says they are supposed to be “operated exclusively for the promotion of social welfare.” But in 1959, the regulators interpreted the “exclusively” part of the statute to mean groups had to be “primarily” engaged in enhancing social welfare. This later opened the door to political spending.

So what does “primarily” mean?  It’s not clear. The IRS has said it uses a “facts and circumstances” test to say whether a group mostly works to benefit the community or not. In short: If a group walks and talks like a social welfare non-profit, then it’s a social welfare non-profit.

This deliberate vagueness has led some groups to say that “primarily” simply means they must spend 51 percent of their money on a social welfare idea — say, on something as vague as “education,” which could also include issue ads criticizing certain politicians. And then, the reasoning goes, a group can spend as much as 49 percent of its expenditures on ads directly advocating the election or defeat of a candidate for office.

Nowhere in tax regulations or rulings does it mention 49 percent, though. Some non-profit lawyers have argued that the IRS should set hard limits for social welfare non-profits — setting out, for instance, that they cannot spend more than 20 percent of their money on election ads or even limiting spending to a fixed amount, like no more than $250,000.

So far, the IRS has avoided clarifying any limits.

2. Donors to social welfare non-profits are anonymous for a reason.

Unlike donors who give directly to politicians or even to Super PACs, donors who give to social welfare non-profits can stay secret. In large part, this is because of an attempt by Alabama to force the NAACP, then a social welfare non-profit, to disclose its donors in the 1950s. In 1958, the Supreme Court sided with the NAACP, saying that public identification of its members put them at risk of reprisal and threats.

The ACLU, which is itself a social welfare non-profit, has long made similar arguments. So has Karl Rove, the GOP strategist and brains behind Crossroads GPS, which has spent more money on elections than any other social welfare non-profit. In early April 2012, Rove invoked the NAACP in defending his organization against attempts to reveal donors.

The Federal Election Commission could in theory push for some disclosure from social welfare non-profits — for their election ads, at least. But the FEC has been paralyzed by a 3-3 partisan split, and its interpretations of older court decisions have given non-profits wiggle room to avoid saying who donated money, as long as a donation wasn’t specifically made for a political ad.

New rulings indicate that higher courts, including the Supreme Court, favor disclosure for political ads, and states are also stepping into the fray. During the 2012 elections, courts in two states – Montana and Idaho – ruled that two non-profits engaged in state campaigns needed to disclose donors.

But sometimes, when non-profits funnel donations, the answers raise more questions. It’s the Russian nesting doll phenomenon. Last election, for instance, California’s election agency pushed for an Arizona social welfare non-profit to disclose donors for $11 million spent on two California ballot initiatives. The answer? Another social welfare non-profit, which in turn got the money from a trade association, which also doesn’t have to reveal its donors.

3. The Supreme Court’s Citizens United decision meant that corporations could pay for political ads, anonymously, using social welfare non-profits.

In January 2010, the Supreme Court ruled that corporations and unions could spend money directly on election ads. A later court decision made possible SuperPACs, the political committees that can raise and spend unlimited amounts of money from donors, as long as they don’t coordinate with candidates and as long as they report their donors and spending.

Initially, campaign finance watchdogs believed corporations would give directly to SuperPACs. And in some cases, that happened. But not as much as anyone thought, and maybe for a reason: Disclosure isn’t necessarily good for business. Target famously faced a consumer and shareholder backlash after it gave money in 2010 to a group backing a Minnesota candidate who opposed gay rights.

Many watchdogs now believe that large public corporations are giving money to support candidates through social welfare non-profits and trade associations, partly to avoid disclosure. Although the tax-exempt groups were allowed to spend money on election ads before Citizens United, their spending skyrocketed in 2010 and again in 2012.

A New York Times article based on rare cases in which donors have been disclosed, sometimes accidentally, explored the issue of corporations giving to these groups last year. Insurance giant Aetna, for example, accidentally revealed it gave $3 million in 2011 to the American Action Network, a social welfare group founded by former Sen. Norm Coleman, a Republican, that runs election ads.

Groups that favor more disclosure have so far failed to force action by the FEC, the IRS, or Congress, although some corporations have voluntarily reported their political spending. Advocates have now turned to the Securities and Exchange Commission, which is studying a proposal to require public companies to disclose political contributions.

The idea is already facing strong opposition from House Republicans.

4. Social welfare non-profits do not actually have to apply to the IRS for recognition as tax-exempt organizations.

With all the furor over applications being flagged from conservative groups — particularly groups with “Tea Party,” “Patriot” or “9/12″ in their names — it’s worth remembering that a social welfare non-profit doesn’t even have to apply to the IRS in the first place.

Unlike charities, which are supposed to apply for recognition, social welfare non-profits can simply incorporate and start raising and spending money, without ever applying to the IRS.

The agency’s non-profit wing is mainly concerned about ferreting out bad charities, which are the biggest chunk of non-profits and the biggest source of potential revenue. After all, the IRS’s main job is to collect revenue. Charities allow donors to deduct donations, while social welfare non-profits don’t.

Most major social welfare non-profits do apply, because being recognized is seen as insurance against later determination by the IRS that the group should have registered as a political committee and may face back taxes and disclosure of donors. A recognition letter is also essential to raise money from certain donors — like, say, corporations.

But some of the new groups haven’t applied.

The first time the IRS hears about these social welfare non-profits is often when they file their first annual tax return, not due until sometimes more than a year after they’ve formed.

In many cases, the first time the IRS hears about these groups is a full year after an election.

5. Most of the money spent on elections by social welfare non-profits supports Republicans.

Of the more than $256 million spent by social welfare non-profits on ads in the 2012 elections, at least 80 percent came from conservative groups, according to FEC figures tallied by the Center for Responsive Politics.

None came from the Tea Party groups with applications flagged by the IRS. Instead, a few big conservative groups were largely responsible.

Crossroads GPS, which this week said it believes it is among the conservative groups “targeted” by the IRS, spent more than $70 million in federal races in 2012. Americans for Prosperity, the social welfare non-profit launched by the conservative billionaire brothers Charles and David Koch, spent more than $36 million. American Future Fund spent more than $25 million. Americans for Tax Reform spent almost $16 million. American Action Network spent almost $12 million.

Besides Crossroads GPS, each of those groups has applied to the IRS and been recognized as tax-exempt. (You can look at their applications here.)

All of those groups spent more than the largest liberal social welfare non-profit, the League of Conservation Voters, which spent about $11 million on 2012 federal races. The next biggest group, Patriot Majority USA, spent more than $7 million. Planned Parenthood spent $6.5 million. VoteVets.org spent more than $3 million.

None of those figures include the tens of millions of dollars spent by groups on certain ads that run months before an election that are not reported to the FEC.

6. Some social welfare groups promised in their applications, under penalty of perjury, that they wouldn’t get involved in elections. Then they did just that.

Much of the attention when it comes to Tea Party nonprofits has focused on their applications and how the IRS determines whether a group qualifies for social welfare status.

As part of our reporting on dark money in 2012, ProPublica looked at more than 100 applications for IRS recognition. One thing we noted again and again: Groups sometimes tell the IRS that they are not going to spend money on elections, receive IRS recognition, and then turn around and spend money on elections

The application to be recognized as a social welfare non-profit, known as a 1024 Form, explicitly asks a group whether it has spent or plans to spend “any money attempting to influence the selection, nomination, election, or appointment of any person to any Federal, state, or local public office or to an office in a political organization.”

The American Future Fund, a conservative non-profit that would go on to spend millions of dollars on campaign ads, checked “No”in answer to that question in 2008. The very same day the group submitted its application, it uploaded this ad to its YouTube account: http://youtu.be/2oEz3lzgDsI

Even before mailing its application to the IRS saying it would not spend money on elections in 2010, the Alliance for America’s Future was running TV ads supporting Republican candidates for governor in Nevada and Florida. It also had given $133,000 to two political committees directed by Mary Cheney, the daughter of the former vice president.

Another example of this is the Government Integrity Fund, a conservative non-profit that ran ads in last year’s U.S. Senate race in Ohio. Its application was approved after it told the IRS that it would not spend money on politics. The group went on to do just that.

 

By: Kim Barker and Justin Elliott, ProPublica; Published in The National Memo, May 22, 2013

May 23, 2013 Posted by | Internal Revenue Service | , , , , , , , , | Leave a comment

“Can The President Create A ‘Culture’?”: What Matters Isn’t About Culture, It’s People And Politics

As you may have noticed, the biggest problem with the IRS scandal (from the perspective of Republicans) is that it remains stubbornly removed from the President himself. It’s all well and good to get a couple of scalps from mid-level managers, but for it to be a real presidential scandal you need to implicate the guy in the Oval Office in the wrongdoing. Confronted with Obama’s non-involvement, conservatives have turned to vague and airy accusations about the “culture” Obama has created. Mitch McConnell, for instance, is warning darkly that Obama may be not too far removed from Tony Soprano: “I think what we know for sure is that there is a culture of intimidation across this administration—the president demonizing his enemies, attempting to shut people up. There is certainly a culture of intimidation.”

The idea that Barack Obama—whom Republicans regularly accuse of being a foreign-born anti-American socialist communist marxist who is slowly carrying out a plan to destroy America—is the one “demonizing” his opponents is pretty laughable. But the nice thing about the “culture” argument is that to make it, you don’t have to point to any particular thing any particular person has done. It’s just a culture, out there in the ether.

Conservatives are also alleging that the IRS employees who gave extra scrutiny to 501(c)(4) applications of Tea Party groups were in fact acting on Obama’s instructions. It was just that the instructions came in the form of him going out on the campaign trail and lamenting the Citizens United decision and the way it opened the door for all kinds of “dark money” to be injected into campaigns. Once again, it’s a way of ascribing guilt without having any evidence of guilt, but the problem is, it fails from both ends. Lots of people, even many Republicans, joined Obama in lamenting the rise of the new super PACs and 501(c)(4)s. It was an issue when Republicans were using them against each other in the 2012 presidential primaries. And if the IRS employees were trying to help Obama, they were going about it all wrong. As Ed Kilgore says, “The ultimate howler here is that we are supposed to believe that IRS bureaucrats, in obedience to the “dog whistle” of the president’s demonization of conservative groups’ involvement in the 2012 presidential campaign, chose to ignore the groups that were involved in the campaign in a significant way, and instead go after small fry Tea Party organizations.”

But can a president create a “culture” within the government that has consequences for the behavior of bureaucrats down the line, even to the point of sanctioning wrongdoing? The easy answer is, well, sure. Every boss creates an atmosphere that can affect the behavior of the people who work for her. But when you get beyond the people who work in the president’s immediate orbit, what matters isn’t culture, it’s people and policies. For instance, the Bush administration didn’t torture prisoners because Dick Cheney went on Meet the Press and said that to fight terrorism we’d have to go to “the dark side, if you will,” and then folks just got the message and started waterboarding prisoners. It happened because the administration made torture its official policy, and had in place the personnel who were eager to do it.

The United States government is a gigantic entity; even excluding uniformed military, there are 2.7 million federal employees spread around the country. No one, not even the president, can with a few words on the campaign trail create a “culture” that allows misbehavior to happen. I realize that many conservatives believe that Obama and anyone who would ever consider working for him are so corrupt that their immorality must naturally spread through the government like the hantavirus. But that’s not how it works.

 

By: Paul Waldman, Contributing Editor, The American Prospect, May 22, 2013

May 23, 2013 Posted by | Politics | , , , , , , , | 1 Comment