“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
“The Midterm Manifesto”: Senate Republicans Want The GOP To Make All Sorts Of Promises It Can’t Keep
Senate Republicans may be about to make the same mistake they often do when attempting to outline a platform: proposing policies that are impossible to implement.
Politico reports that a bloc of Senate Republicans, led by Lindsey Graham, “is agitating for party leaders to unveil a policy manifesto” that would explain to voters what the GOP would do if it took the majority in the midterm elections. This is yet another sign that the Republican Party realizes it needs a new political strategy, now that Obamacare has rebounded. A new “Contract With America”—the party’s midterm platform in 1994, on which this 2014 manifesto would be modeled—could prove successful at the polls.
But as a governing strategy, this manifesto will only make legislating more difficult if the GOP takes the Senate. That’s because Republicans have a bad habit of overpromising.
In 2012, Mitt Romney promised a mathematically impossible tax-reform plan to lower all rates by 20 percent and cut the corporate rate, making up the revenue by closing unspecified tax preferences. When House Ways and Means Chairman Dave Camp released his tax reform plan in February, he attempted to cut rates and consolidate the tax code, but struggled to make up the lost revenue, eventually creating a top rate of 35 percent, implementing a bank tax, and taxing a percentage of capital gains as ordinary income. Republicans predictably ran away from Camp’s reasonable plan.
Marco Rubio has proposed reforming the federal government’s antipoverty system. But his plan is mathematically impossible: He proposes increasing benefits for childless workers, keeping them unchanged for everyone else, and not increasing the deficit. He has yet to release legislative language for the plan, but those three goals are irreconcilable.
It’s hard to imagine what Senate Republicans could unite behind that would appeal to most of the party. If tax reform ends up in a Senate Republican policy manifesto, it will only reinforce the impossible Republican standard of drastically lowering rates and eliminating tax preferences to avoid increasing the deficit. This is exactly what Representative Paul Ryan did in his budget this year, where he reiterated his support for two tax brackets with rates at 10 and 25 percent. Camp tried to do that, but came up short. The dual-rate structure simply doesn’t raise enough revenue. As the likely replacement for Camp as chair of Ways and Means, Ryan now has made tax reform very hard to accomplish.
Undoubtedly, the midterm manifesto would propose replacing Obamacare—but replace it with what? Senators Tom Coburn, Richard Burr and Orrin Hatch unveiled the Patient CARE Act in January, which actually had a lot in common with Obamacare. It didn’t earn much support among the GOP for that reason. What plan could Senate Republicans unite behind that does more than just repeal Obamacare?
Will the platform contain a balanced budget amendment, as Newt Gingrich and House Republicans included in their “Contract with America”? Republicans would face stiff Democratic opposition to such an amendment, but the GOP may also have to answer how they would close budget deficits if the amendment somehow became law. They certainly wouldn’t increase revenue. Instead, it would require even steeper spending cuts—$1.2 trillion more than even Paul Ryan envisioned in his budget. The Ryan budget already takes such a huge cut from programs for low-income Americans that it is hard to see how another $1.2 trillion in cuts wouldn’t need to come from defense spending or Social Security. Those are two areas Republicans don’t want to touch.
All this speculation may be moot. Minority Leader Mitch McConnell has yet to offer an opinion on the proposed manifesto, according to Politico, while John Cornyn, the Senate minority whip, argued against it. “Even if we have a good election, President Obama is still going to be president,” Cornyn said. “I don’t think we should be in the business of overpromising.”
If only the party took that advice more often.
By: Danny Vinik, The New Republic, May 27, 2014
“Cliven Bundy And The Entitlement Of The Privileged”: What He Learned From The Koch Brothers
Nevada rancher Cliven Bundy’s 15 minutes of fame are up. He was a Fox News poster boy when he refused to pay fees for grazing his cows on federal land and greeted federal rangers with the threat of armed resistance. But when he voiced his views on the joys of slavery for “the Negro,” his conservative champions fled from his side.
What is interesting about Bundy, however, is not his tired racism but rather his remarkable sense of entitlement. His cattle have fed off public lands for two decades while he refused to pay grazing fees that are much lower than those he would have to pay for private land (and lower even than the government’s costs). “I’ll be damned if this is the property of the United States,” he says, claiming he won’t do business with the federal government because the Constitution doesn’t prohibit Americans from using federal lands.
As we’ve seen in recent years, this sense of entitlement pervades the privileged. Billionaire hedge fund operator Stephen Schwarzman feels so entitled to his obscene hedge fund tax dodge – the “carried interest” exemption – that he viewed Obama’s call to close the loophole as “a war. It’s like when Hitler invaded Poland in 1939.” Tom Perkins, co-founder of venture capital fund Kleiner Perkins Caufield & Byers, considers mere criticism of the wealthiest Americans akin to the persecution of the Jews in Nazi Germany.
When Republican Dave Camp, the chairman of the House Ways and Means Committee, had the temerity to propose a surcharge on the biggest financial houses (those with $500 billion in assets or more), to correct for the subsidy and competitive advantage provided by being “too big to fail,” Wall Street went ballistic. Republicans were told the spigot of political fundraisers would be closed until they recanted their heresy. “We’re going to beat this like a rented mule,” boasted Cam Fine, head of the Independent Community Bankers of America.
Big Oil feels so entitled to its multibillion-dollar annual subsidies, that Jack Gerard, president of the American Petroleum Institute, even denies their existence: “The oil and gas industry gets no subsidies, zero, nothing.” The more than $4 billion that the most profitable companies in the history of the world receive annually from U.S. taxpayers are apparently entitlements, not subsidies.
No one exemplifies this sense of entitlement more than the billionaire Koch brothers, self-proclaimed libertarians who pour hundreds of millions of dollars into supporting think tanks, lobbies and candidates who will protect their right to pollute our air and water while leaving taxpayers to pay billions of dollars to repair damage done. Owners of companies that have serially violated environmental, health and safety laws, the Koch brothers have played a major role in propogating the views adopted by rancher Bundy.
Mitt Romney, the Republican candidate for president, infamously denounced the 47 percent as “takers,” even while revealing that he paid a low 14.1 percent income tax rate. As Bundy dramatized, the real “takers” aren’t the poor and the vulnerable. Indeed, worse-off Americans are so disabused of any sense of entitlement that millions don’t jump the hurdles needed to receive the benefits for which they are eligible.
No, the real “takers” with a stunning sense of entitlement are the biggest corporations and banks, the richest Americans. They view their tax dodges as an inherent right, their inherited estates as a birthright. They treat the public commons as a resource that they should be free to plunder and regard any regulations that would protect those resources as an infringement on their liberty. Corporations are now arguing in court that that the First Amendment gives them the right to evade the law.
But, as Sen. Elizabeth Warren (D-Mass.) noted in her speech to the Democratic National Convention in 2012, the entitlements of the elite are increasingly under question:
“People feel like the system is rigged against them. And here’s the painful part: They’re right. The system is rigged. Look around. Oil companies guzzle down billions in subsidies. Billionaires pay lower tax rates than their secretaries. Wall Street CEOs — the same ones who wrecked our economy and destroyed millions of jobs — still strut around Congress, no shame, demanding favors and acting like we should thank them. Anyone here have a problem with that? Well, I do.”
And, as polls show, so do the vast majority of Americans. Just as Bundy discovered his casual racism was unacceptable, he will learn that his privileged sense of entitlement earns similar scorn.
By: Katrina vanden Heuvel, Opinion Writer, The Washington Post, April 29, 2014
“IRS Hearings Are Another Republican Circus”: A Folly Wrapped In A Charade And Shrouded By Farce
Dave Camp had a secret.
The House Ways and Means Committee chairman was ready to send the panel’s files on former IRS official Lois Lerner to the Justice Department for a possible prosecution — a handover that could have been accomplished with a simple phone call to the attorney general. Instead, Camp put on a show.
The Michigan Republican invited the press and the public to the committee’s storied hearing room Wednesday, only to call an immediate vote to kick them out. This way, the panel could meet in a closed session to debate Lerner’s fate — a dramatic but meaningless gesture because the sole purpose of the secret meeting was to authorize releasing the committee’s files on Lerner to the public.
Republicans said the closed session was required to make the information public, but the panel’s ranking Democrat, Sandy Levin (Mich.), said the debate should be held in the open.
“Mr. Chairman?” he inquired after the plan to go into secret session was announced.
Camp ignored Levin. “The clerk will call the roll,” he said.
“Mr. Chairman?”
“The clerk will call the roll.”
“Mr. Chairman?”
“The clerk will call the roll.”
Levin pressed on, patiently raising a point of order.
“Just chill out,” the 60-year-old Camp finally snapped at his 82-year-old colleague.
“I’m very chilled out,” Levin replied.
This was true. Levin hadn’t raised his voice at all. Camp, on the other hand, was agitated — for good reason.
The lawmaker, who is retiring at the end of this term, has built a solid reputation over the years, and he recently won plaudits for releasing a thoughtful proposal to overhaul the tax code. Camp was on course to retire with dignity — at least until he allowed his committee room to be turned into a circus tent Wednesday. It was a folly wrapped in a charade and shrouded by farce.
Folly: There was no need to have a formal hearing to convey the information to the Justice Department, which is already investigating the IRS’s targeting of conservative groups.
Charade: The committee made a big show of having its secret hearing, even though it was a foregone conclusion that the members would vote along party lines to release its “secret” information — including the transcript of the secret hearing — to the public.
Farce: Camp said Lerner could be prosecuted for releasing private taxpayer information. Yet in making public its Lerner files, the committee used its authority to do legally the same thing it accused her of doing illegally: releasing confidential taxpayer information. That hadn’t been done in at least 40 years.
Of course, the taxpayers whose information was released — mostly related to Karl Rove’s Crossroads GPS group — may not mind, because they have an interest in seeing somebody pay for the IRS’s targeting of a disproportionate number of tea party groups for extra scrutiny.
The IRS scandal didn’t come close to the “culture of corruption” Camp promised or the “targeting of the president’s political enemies” and coverup alleged by Darrell Issa (R-Calif.), whose committee is holding the contempt vote. Instead, the investigations didn’t go beyond Lerner, a civil servant who led the agency’s tax-exempt division. “This was a career employee in the IRS potentially who did all these things,” Camp said after Wednesday’s secret session. “So we have to make sure that the signal goes out that this doesn’t happen again.”
That’s a reasonable sentiment, and one shared by Levin, who on Wednesday said Lerner had been guilty of “clear mismanagement.” Democrats objected not to Camp turning over the committee’s information on Lerner, but to the cloak-and-dagger hearing followed by the wholesale release of tax records.
The AP’s Stephen Ohlemacher asked Camp why he didn’t just “pick up the phone” rather than make private taxpayer files public.
Camp agreed that such a release was unprecedented but said, “This is so important that I think the public has a right to know.” He repeatedly called the matter “important” and “a very serious thing.”
But the chairman’s claims of importance were undermined by his committee’s antics, including its showy secrecy. Reporters, waiting out the two-hour closed session in the hallway, were treated to Krispy Kreme doughnuts by the committee’s staff. But inside the room, other staffers were unplugging the journalists’ cables, just to be sure nobody pierced the veil.
When Camp reconvened the hearing after the secret session, cameramen called out for him to wait as they reassembled their equipment. Rep. Paul Ryan (R-Wis.) complained. “Are you guys ready?” he moaned.
But Camp waited, which was wise. What good is a farce if it isn’t on film?
By: Dana Milbank, Opinion Writer, The Washington Post, April 9, 2014
“The Winds Are Shifting”: How Corporate America Is Losing The Debate On Taxes
If there is one clear loser in President Obama’s budget this year, it’s U.S. multinationals.
With six new ideas designed to plug some major leaks in the tax code, the 2015 budget proposes a total of more than $276 billion in higher taxes on overseas earnings for U.S. multinationals over the next decade, about $120 billion more than last year’s budget. (A sample of the policy just to give you an idea of how deep in the guts the administration is going: “Create a new category of Subpart F income for transactions involving digital goods or services.”)
So much for the White House’s attempts to strike common ground with big company chief executives, who have been howling for years about paying too much in taxes with the federal corporate tax rate at 35 percent. The companies have also poured money into an endless parade of coalitions with names like ACT, RATE, WIN, TIE AND LIFT.
The trouble with the executives’ complaints is that many companies don’t pay nearly the 35 percent rate. GE, for instance, in its most recent annual filing said it paid an effective tax rate of 4.2 percent. (See this graphic we ran last year showing taxes paid by companies in the Dow 30.) These firms insist that the high rate is merely forcing them to find complex ways to lower their tax bills. But with this budget, it’s clear the administration isn’t buying it.
“The problem is not an international tax system that unacceptably handicaps U.S. businesses,” said Ed Kleinbard, a professor at the University of Southern California’s Gould School of Law who has done extensive research on the way companies shuffle their income overseas to lower their tax bills. “Instead the problem is an international tax system both in the United States and other countries that U.S. multinational firms have demonstrated they are highly skilled at gaming.”
The president’s budget is the latest sign for corporate tax lobbyists that the winds are perhaps shifting against them. Last month’s tax reform plan from House Ways and Means Chairman Dave Camp (R-Mich.) also included a number of ideas unpopular with business, including a bank tax. His section on international tax reform was somewhat more generous to big firms, giving them a lower rate on overseas earnings with anti-abuse measures that Kleinbard says don’t go far enough.
Of course, expectations are low that either the president or Camp’s policies will ever make the leap to reality. But after spending hundreds of millions of dollars on lobbyists, corporate America is not exactly seeing its worldview reflected in these blue prints.
By: Jia Lynn Yang, WonkBlog, The Washington Post, March 5, 2014
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