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“GOP Chases Fake IRS Scandal, But Makes The Real One Worse”: Republicans Need Look No Further Than Their Own Budget Proposals

With the exception of the 2012 Benghazi attacks, no Obama-era controversy has animated Republican imaginations quite like the one surrounding the Internal Revenue Service.

Congressional Republicans’ version of the scandal originally went like this: President Obama ordered the IRS to target right-wing organizations applying for tax-exempt status as non-political “social welfare” groups, leading the agency to harass those on the president’s Nixonian enemies list.

It turns out that none of that ever happened; the IRS targeted liberal groups as well as conservative ones, not a single Tea Party group was denied tax-exempt status (despite overwhelming evidence that many of them were engaged in political activity), and no evidence ever emerged that the White House was involved in any of it. Still, that hasn’t stopped Republicans from escalating the “scandal” in increasingly ridiculous ways.

The current outrage centers around the IRS’ claim that thousands of former IRS official Lois Lerner’s emails were lost when her computer crashed in 2011. Although evidence and logic suggest that this was not part of a massive cover-up, Senator Ted Cruz (R-TX) is threatening to impeach Attorney General Eric Holder unless he appoints a special prosecutor to investigate it, and Reps. Louie Gohmert (R-TX) and Bill Flores (R-TX) have introduced a bill promising a $1 million bounty to anyone who can restore the lost emails, while threatening to cut the salaries of IRS employees by 20 percent unless the emails are recovered.

As it happens, Republicans have already hammered IRS employees with cuts since they took control of the House of Representatives in 2011 — and they didn’t even need a “Nixonian” “scandal” to do so.

In a report released Wednesday, the Center on Budget and Policy Priorities illustrates just how badly Congress has constrained the IRS’ ability to do its job. Due to a combination of discretionary budget cuts and sequestration, the IRS has been left with an $11.3 billion budget for 2014. That’s $840 million lower than it was in 2010, amounting to a 14 percent cut when accounting for inflation.

CBPP Chart 1

As a result of the cuts, the IRS has been forced to reduce its workforce by 11 percent since 2010, even as the agency’s workload has substantially increased (for example, in addition to the IRS’ new campaign finance responsibilities, CBPP notes that the number of individual tax returns has grown by 1.5 million annually over the past decade).

CBPP Chart 2

Furthermore, even as the IRS’ remaining workers have been forced to take on more responsibility, the agency’s training budget has been slashed by an astonishing 87 percent between 2010 and 2013, the most recent year with available data. If Congress wants to know why the IRS struggled so badly at sorting out the glut of groups that applied for tax exemption, there is your answer.

President Obama’s 2015 budget would reverse the rapid slide in the IRS’ funding; it would increase the agency’s budget by $1.2 billion from this year’s level, returning it to roughly its 2010 level (before adjusting for inflation).

The House appropriations subcommittee wants to go further in the other direction, however; it has proposed cutting IRS funding by yet another $340 billion. This is especially illogical considering the GOP majority’s supposed desire to limit the budget deficit. According to the Treasury Department, each $1 spent on the IRS budget yields $4 of revenue.

“Policymakers should give the IRS sufficient resources to carry out its mission,” the CBPP paper concludes. “In particular, policymakers who profess to be concerned or even alarmed about the nation’s current or future fiscal course should provide the IRS with the funding it needs to administer the nation’s tax laws and collect taxes due under the laws of the land.”

CBPP is not the first to sound the alarm over the IRS’ lack of funding; The National Memo’s David Cay Johnston made a similar argument in 2013, at the height of the “targeting” controversy.

Republicans are clearly desperate to uncover a real scandal at the IRS. But if they really want to improve things at the much-maligned agency, they need look no further than their own budget proposals.

 

By: Henry Decker, The National memo, June 27, 2014

June 29, 2014 Posted by | Federal Budget, Internal Revenue Service, Republicans | , , , , , , | Leave a comment

“About Those New Lois Lerner Emails…”: As With Previous “Smoking Guns”, The Truth Is Not Nearly So Outrageous

If the Ways and Means investigation into Lois Lerner had really and truly uncovered a “push to audit Senator Chuck Grassley,” then the Republican Party might finally have had the scandal it was so sure it would eventually find.

Yet as with previous smoking guns in the never-ended Internal Revenue Service story, the truth is not nearly so outrageous.

The supposed targeting of Tea Party groups actually involved keyword searches that included liberal groups, as well. And the supposed “push” was actually more of an aborted nudge.

Here’s what happened. Ms. Lerner received an invitation to an event intended for Mr. Grassley. Ms. Lerner sent an email to a colleague, Matthew Giuliano, wondering if the invitation were kosher, and asked if the issue should be referred for examination. The colleague suggested it should not, and Ms. Lerner backed off.

You can read the full e-mail exchange here. Or read an excerpt below:

Lerner: Is this the one where we got the copy to Grassley? Did he get one to me? Looked like they were inappropriately offering to pay for his wife. Perhaps we should refer to Exam?

Giuliano: It is, and yes. Your and Grassley’s invitations were placed in each other’s envelopes. Not sure we should send to exam. I think the offer to pay for Grassley’s wife is income to Grassley, and not prohibited on its face … We would need to wait for: (i) Grassley to accept and attend the speaking arrangement; and (ii) then determine whether [blacked out] issues him a 1099. And even without the 1099, it would be Grassley who would need to report the income on his 1040.

Lerner: Thanks — don’t know why I thought it was a [blacked out] — maybe answer would be the same. Don’t think I want to be on stage with Grassley on this issue.

Ms. Lerner was maybe a little too eager to investigate Mr. Grassley, but once her colleague suggested there probably wasn’t any wrongdoing, she didn’t “push” or shove or anything of the sort. If we’re looking for a physical metaphor, what she did was turn around and walk away.

 

By: Juliet Lapidos, Taking Note, The Editors Blog, The New York Times, June 26, 2014

June 28, 2014 Posted by | Chuck Grassley, Internal Revenue Service, Lois Lerner | , , , | 1 Comment

“Still Looking For Attention”: Darrell Issa’s Flailing Search For His White Whale

Congressional oversight of any administration is important and worthwhile. Indeed, it’s a critical part of the American system to have institutional checks and balances. Lawmakers have a duty to watch the White House and ask tough questions when potential controversies arise.

That said, this was just embarrassing.

Representative Darrell Issa of California, the Republican who is leading one of the investigations into the Internal Revenue Service’s scrutiny of Tea Party groups, accused the I.R.S. commissioner on Monday of lying, an allegation that only deepened the partisan mistrust about the motivations behind the numerous congressional inquiries into the matter.

The hearing on Monday night, before the House Oversight Committee, was the second time in four days in which the commissioner, John Koskinen, was called to Capitol Hill to explain what had happened with the emails.

These questions have already been asked and answered, and there’s simply no evidence of wrongdoing. The IRS won’t apologize for the incident because, in this case, agency officials really haven’t done anything wrong – a fact congressional Republicans seem to recognize but choose to ignore.

But what made last night’s hearing an unusually sad display was, well, just about everything.

Consider for example the fact that it was an evening hearing, which is quite unusual on Capitol Hill. Last week, the House Ways and Means Committee and its chairman, Rep. Dave Camp (R-Mich.), demanded the IRS’s John Koskinen testify on the emails. The relevant people checked calendars and picked a date: the hearing would be the morning of Tuesday, June 24 (today).

Issa, seeing the opportunity for a tantrum, literally 10 minutes later, announced he would hold a hearing with Koskinen about the emails on the evening of Monday, June 23. Why? Because Issa wanted to be first. It just made him feel better.

But Koskinen rechecked his schedule and told Ways and Means he had an opening on Friday, June 20, so they held the hearing then – leaving poor Issa to hold a redundant, evening hearing, asking the same questions of the same official about the same story, three days later.

In other words, Issa, still looking for attention and some semblance of a “scandal” that fell apart a year ago this week, is still hunting for his white whale – except he’s not doing it very well.

It’s become increasingly difficult to take the “controversy” seriously because there’s so little meat on the bones. Yes, it’s understandable to raise questions when computers crash and documents are no longer available, but there’s literally nothing to suggest the missing emails would have been remotely interesting. GOP lawmakers are on a fishing expedition, starting with an answer – there must be some wrongdoing, somewhere, from someone – and then working backwards in the hopes of justifying the agreed-upon conclusion.

Consider what we’ve seen for over a year: Republicans demand information, which the administration supplies, and which shows no conspiracy, no cover-up, and no crime. So Republicans demand different information, which the administration also supplies, and which again shows no conspiracy, no cover-up, and no crime.

Which in turn leads Republicans to ask for still more information. In this case, those materials are no longer available, leading the right and some lazy pundits to declare, “A ha!

This is silly and no way to conduct credible oversight. In my heart of hearts, I strongly suspect Republicans know this, but just don’t care – this is about election-year tactics, mobilizing the GOP’s far-right base, creating fundraising opportunities, and giving conservative media something to talk about.

In reality, though, there’s still nothing here.

Now, John Dickerson argues that the IRS should be better at record-keeping, especially since the tax agency expects much from taxpayers. It’s a fair point. That said, it’s also unrelated to what Republicans care about – the obsession is about politics, not governance – and as Thomas Mann has explained, we’re talking about an agency that “has serious problems, many arising from vast new responsibilities (e.g. the ACA), inadequate resources, and low staff morale in the face of widespread hostility in Congress to the very idea of an Internal Revenue Service.”

If congressional Republicans want to have a mature conversation about how to improve the IRS, that’d be a worthwhile exercise. But by all appearances, the opportunities for mature conversations with GOP lawmakers are far and few between these days.

 

By: Steve Benen, The Madow Blog, June 24, 2014

June 25, 2014 Posted by | Darrell Issa, House Republicans, Internal Revenue Service | , , , , | Leave a comment

“She Can See Things 16 Days Before They Happen”: The Woman At The Center Of The IRS ‘Scandal’ Must Be Clairvoyant

If I were the Republican Party, rather than attacking Lois Lerner as a modern-day E. Howard Hunt, I’d hire her as an election consultant. Why? Because the former commissioner at the center of the “newly re-burgeoning” IRS “scandal” is clearly a clairvoyant. I should think she’d be pretty handy for Reince Priebus to have around this October. You see, she can see things 16 days before they happen.

How do I know this? Consider the timeline of events. Lerner, who worked in the service’s Washington office, was first alerted that employees in the Cincinnati branch were using “inappropriate criteria” (key words like “tea party”) to process the applications of nonprofit groups on June 29, 2011. This comes from the very Treasury Department IG report that first made this whole business public. See the timeline here.

OK, so that’s that. Now, you’ve been hearing all this stuff lately about her lost emails, right? Her emails from between January 2009 and April 2011 disappeared. Went poof. It was in early 2010 that the IRS began using the inappropriate criteria. Looks awfully suspicious, doesn’t it? She lost all her emails pertaining to the period under examination and then some. Stinks to high heaven. Some have compared the missing two-plus years to the famous 18 1/2-minute gap in the Watergate tapes.

One problem. Her computer crashed on June 13, 2011. It was the following day that she wrote to other IRS personnel to tell them: “My computer crashed yesterday.” This date was noted last week by Sander Levin, the ranking Democrat on the House Ways and Means Committee.

That was when all those emails disappeared on her. It happened 16 days before she even knew about the problem in the Cincinnati office. So how likely is it that she deleted those emails in order to prevent House investigators from being able to learn anything about the “scandal”? Considering that she didn’t know about the problem yet, I’d say bloody unlikely.

In other words, this is just another ridiculous allegation in a parade of them. Admittedly, all of these revelations have looked dubious at first glance. But all of them have fizzled upon serious examination. It wasn’t just groups on the right that were targeted. The IRS head who visited the White House 155 times or whatever it was turns out to have gone to the Old Executive Office Building, not the White House, most of those times, and largely to talk about the IRS’ role in crafting and implementing Obamacare. And so on.

On top of that, the idea that Obama himself had some hand in this stuff, which was of course the original suspicion and orgasmatronic dream in Wingnuttia, is and always has been utterly crazy. I wouldn’t have put much past George W. Bush, but I would never have believed that even he would have orchestrated a scandal with such little upside (keeping some groups from getting 501c3 status) and such massive downside (possible Nixonian illegality). Dick Cheney, maybe, but not Bush.

And on top of that, the extremely unsurprising fact is that federal government computers crash all the time. These agencies’ internal operations are all underfunded, and bureaucrats all over the country are using primitive computers that groan under the weight of today’s demands. Plus, requirements for data preservation are fairly lax—and even if they weren’t, problems happen in this realm frequently.

Remember the Bush-era U.S. attorney firings? The Bush White House announced that it had lost 5 million emails during that probe. Not all emails relating to the Valerie Plame investigation were properly preserved. And finally, a Justice Department report found that many emails written by and to two Bush administration officials who’d been involved in crafting the “torture is legal” argument had suddenly gone missing. I’m sure the people today saying that the IRS scandal is bigger than Watergate were making excuses then.

In this case, no excuses need to be made. Unless Lois Lerner is a clairvoyant, the idea that she deleted emails on June 13 to cover up behavior she didn’t even learn about until June 29 is simply preposterous to any rational person with even a passing respect for facts and evidence. Unfortunately, that doesn’t describe Darrell Issa, who is holding another hearing Monday night (yes, night!), casting his fishing line out into the sea one more time. His colleague Trey Gowdy is going to be getting all the Benghazi headlines once that committee is up and running, so Issa has to find something to do, I suppose.

What’s amusing to me here is this: Conservatives are the people who think government can’t do anything right. That is exactly the situation we have here. IRS employees in Cincinnati really screwed up the processing of applications. The people in the charge of them in Washington were to some degree asleep. Computers crashed and emails were lost. As far as conservatives are concerned, that’s what government does all the time.

To conservatives, that usually explains a lot. But here of course they thought they had a chance to advance the more delectably sinister theory that Obama is out to destroy his political enemies. But sorry. Obama’s no Nixon, and Lois Lerner is no Rose Mary Woods.

 

By: Michael Tomasky, The Daily Beast, June 23, 2014

June 24, 2014 Posted by | Internal Revenue Service, Republicans | , , , , , , , , | Leave a comment

“Tapping A Dry Well”: Darrell Issa Seeks New Angle On Discredited IRS Controversy

Remember how the IRS “scandal” first started? The inspector general for the IRS issued a report pointing to special scrutiny applied to Tea Party groups, but ignoring comparable scrutiny of progressive organizations. Why didn’t IG J. Russell George provide a more accurate report highlighting trouble for groups on both sides? According to the IG himself, congressional Republicans told him to paint an incomplete picture on purpose.

The result was something of a fiasco: a controversy erupted to great fanfare, but then collapsed when we realized Tea Partiers hadn’t been singled out for unfair treatment, and liberal and non-political groups faced similar IRS scrutiny. The whole “scandal” was a mirage that quickly faded.

But Republicans don’t want to let go, especially after all the fun they had in May. So what happens now? As Dave Weigel reported, House Oversight Chairman Darrell Issa (R-Calif.) and his allies now want another “narrowly-focused” investigation from the IG’s office.

In a letter from Issa and Rep. Jim Jordan, the IG is being asked to dig into reports of tax-exempt conservative groups being subjected to audits. Based on information from conservative non-profits like the Free Congress Foundation, the Leadership Institute, and the Clare Booth Luce Institute, Issa and Jordan ask the IG whether any groups were targeted “for audits or examination based on their political beliefs or ideology.” The answers on this in the first investigation were inconclusive, as were the stories, but they should be grist for something. […]

The last couple of months suggest where this is heading. The Leadership Institute is obviously conservative, and run by longtime RNC committeeman Morton Blackwell, but plenty of liberal groups with 501 statuses are run by partisans — and they weren’t audited in 2011 or 2012, were they?

I’ve seen some suggestion that this means the IRS story is “expanding.” That’s a nice spin, but it’s wrong — this isn’t expansion, it’s redirection.

Issa kept trying to tap a dry well, to the point at which most sensible people decided it was time to ignore him. Desperate, the California Republican has begun digging again, assuring the political world that maybe this time he’ll find something useful.

Perhaps Fox and Peggy Noonan will find these partisan antics compelling, but I’m at a loss to explain why.

 

By: Steve Benen, The Maddow Blog, July 30, 2013

July 31, 2013 Posted by | Internal Revenue Service, Politics | , , , , , , , | 1 Comment