ABC News: IRS apologizes for targeting conservative groups

The Tea Party Gets an Apology from the IRS

The Internal Revenue Service inappropriately flagged conservative political groups for additional reviews during the 2012 election to see if they were violating their tax-exempt status, a top IRS official said Friday.

Organizations were singled out because they included the words “tea party” or “patriot” in their applications for tax-exempt status, said Lois Lerner, who heads the IRS division that oversees tax-exempt groups.

In some cases, groups were asked for their list of donors, which violates IRS policy in most cases, she said.

“That was wrong. That was absolutely incorrect, it was insensitive and it was inappropriate. That’s not how we go about selecting cases for further review,” Lerner said at a conference sponsored by the American Bar Association.

“The IRS would like to apologize for that,” she added.

Lerner said the practice was initiated by low-level workers in Cincinnati and was not motivated by political bias. After her talk, she told The AP that no high level IRS officials knew about the practice.

Agency officials found out about the practice last year and moved to correct it, the IRS said in a statement. The statement did not specify when officials found out.

About 75 groups were inappropriately targeted. None had their tax-exempt status revoked, Lerner said.

Senate Republican Leader Mitch McConnell of Kentucky called on the White House to investigate.

“Today’s acknowledgement by the Obama administration that the IRS did in fact target conservative groups in the heat of last year’s national election is not enough,” McConnell said. “I call on the White House to conduct a transparent, government-wide review aimed at assuring the American people that these thuggish practices are not under way at the IRS or elsewhere in the administration against anyone, regardless of their political views.”

Many conservative groups complained during the election that they were being harassed by the IRS. They accused the agency of frustrating their attempts to become tax exempt by sending them lengthy, intrusive questionnaires.

The forms, which the groups made available at the time, sought information about group members’ political activities, including details of their postings on social networking websites and about family members.

Certain tax-exempt charitable groups can conduct political activities but it cannot be their primary activity.

IRS Commissioner Douglas Shulman told Congress in March 2012 that the IRS was not targeting groups based on their political views.

“There’s absolutely no targeting. This is the kind of back and forth that happens to people” who apply for tax-exempt status, Shulman told a House Ways and Means subcommittee.

Shulman was appointed by President George W. Bush. His 6-year term ended in November. President Barack Obama has yet to nominate a successor. The agency is now being run by acting Commissioner Steven Miller.

“The Ways and Means Committee has persistently pushed the IRS to explain why it appeared to be unfairly targeting some political groups over others — a charge they repeatedly denied,” said Rep. Charles Boustany, R-La., chairman of the Ways and Means oversight subcommittee.

“The IRS’s ‘too little too late’ response is unacceptable, and I will continue to work to ensure there are protections in place so no American, regardless of political affiliation, has their right to free speech threatened by the IRS,” Boustany said.

Tea Party groups were livid on Friday.

“I don’t think there’s any question we were unfairly targeted,” said Tom Zawistowski, who until recently was president of the Ohio Liberty Coalition, an alliance of tea party groups in the state.

Zawistowski’s group was among many conservative organizations that battled the IRS over what they saw as its discriminatory treatment of their effort to gain non-profit status. The group first applied for non-profit status in June 2009, and it was finally granted on Dec. 7, 2012, he said — one month after Election Day.

During the 2012 election, many tea party groups applied for tax-exempt status under section 501 (c) (4) of the federal tax code, which grants tax-exempt status to social welfare groups. Unlike other charitable groups, these organizations are allowed to participate in political activities but their primary activity must be social welfare.

That determination is up to the IRS.

Lerner said the number of groups filing for this tax-exempt status more than doubled from 2010 to 2012, to more than 3,400. To handle the influx, the IRS centralized its review of these applications in an office in Cincinnati.

Lerner said this was done to develop expertise among staffers and consistency in their reviews. As part of the review, staffers look for signs that groups are participating in political activity. If so, IRS agents take a closer look to make sure that politics isn’t the group’s primary activity, Lerner said.

As part of this process, agents in Cincinnati came up with a list of things to look for in an application. As part of the list, they included the words, “tea party” and “patriot,” Lerner said.

“It’s the line people that did it without talking to managers,” Lerner. “They’re IRS workers, they’re revenue agents.”

In all, about 300 groups were singled out for additional review, Lerner said. Of those, about a quarter were singled out because they had “tea party” or “patriot” somewhere in their applications.

The IRS statement said that once applications were chosen for review, they all “received the same, even-handed treatment.”

Lerner said 150 of the cases have been closed and no group had its tax-exempt status revoked, though some withdrew their applications.

“Mistakes were made initially, but they were in no way due to any political or partisan rationale,” the IRS said in a statement. “We fixed the situation last year and have made significant progress in moving the centralized cases through our system.”

Marcus S. Owens, who spent a decade leading the IRS division that oversees tax-exempt organizations, said Friday that it made sense that the problem arose among workers in Cincinnati because the agency “really has delegated a lot of authority” to local offices to make decisions about handling their workload.

But Tea Party groups weren’t buying the idea that the decision to target them was solely the responsibility of low-level IRS workers.

“It is suspicious that the activity of these ‘low-level workers’ was unknown to IRS leadership at the time it occurred,” said Jenny Beth Martin, national coordinator for Tea Party Patriots, which describes itself as the nation’s largest tea party organization. “President Obama must also apologize for his administration ignoring repeated complaints by these broad grassroots organizations of harassment by the IRS in 2012, and make concrete and transparent steps today to ensure this never happens again.”

Story Update:

PHOTO: Tea party activists Bob Mason, left and John Oltesvig, both of North Carolina, wear colonial costumes with tri-corner hats as they participate in the rally at the Capitol, April 6, 2012.

The Internal Revenue Service is apologizing for what it acknowledges was “inappropriate” targeting of conservative political groups during the 2012 election to see if they were violating their tax-exempt status.IRS agents singled out dozens of organizations for additional reviews because they included the words “tea party” or “patriot” in their exemption applications, Lois Lerner, who heads the IRS division that oversees tax-exempt groups, said Friday. In some cases, groups were asked for lists of donors, which violates IRS policy in most cases, she said.The agency — led at the time by a Bush administration appointee — blamed low-level employees, saying no high-level officials were aware. But that wasn’t good enough for Republicans in Congress, who are conducting several investigations and asked for more.

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AP: Obama declared health care law ‘is here to stay’

Caught between nervous Democrats and emboldened Republicans, President Barack Obama on Friday stepped up the sales pitch on his health care overhaul as the final elements of his top domestic achievement go into effect. With his legacy and the law’s success at stake, Obama said: “The law is here to stay.”

Behind the scenes, the White House readied a campaign-style effort to get healthy young people to sign up for the insurance “exchanges” in order to keep premium costs from skyrocketing. On Capitol Hill, House Republicans are planning yet another vote to try to try to repeal the law.

The insurance exchanges are the centerpiece of the landmark overhaul of the nation’s health insurance system and the White House mobilization is crucial to the success of the health care law and, by extension, to Obama’s place in history as the first president in decades to expand health care coverage.

“There’s a lot that this law is already doing for Americans with insurance,” Obama said during a Mother’s Day-themed event at the White House. “There’s a lot more that’s going to happen for folks who don’t have insurance.”

But he cautioned: “We still have a lot of work to do in the coming months to make sure more Americans can buy affordable health coverage.”

And he urged the public not to be swayed by what he said were scare tactics from critics of the law who might blame it for rising premiums.

“Don’t be bamboozled,” he said.

Underscoring the policy and political consequences, the White House plans to employ both the resources of government as well as those of his reconfigured political operation as it aimed to enroll 7 million people in health insurance exchanges between Oct. 1 and the end of March. The goal is to get 30 million people to sign up within five years.

Moreover, the composition of those signing up for the new exchanges matters just as much as the overall totals. In order to keep premium costs down, officials say they must register 2.7 million healthy people between the ages of 18 and 35 in order to counteract the costs of ensuring seniors and people with health problems.

The White House’s hopes that Obama’s East Room event would draw broad attention crumpled, however, when the president’s event had to compete for attention with revelations about administration deliberations over the September attack on U.S. diplomats in Benghazi, Libya, and an acknowledgement by the Internal Revenue Service that its workers had singled out conservative groups for additional review.

The effort comes as the public remains divided over the health care law. As a result, the White House is planning an election-like campaign to target those uninsured or individually insured young people, an effort reminiscent of the sophisticated voter outreach that helped Obama twice win the White House. The administration has identified where many of the healthy and uninsured young live and will be working with health clinics, hospitals, churches and other groups to sign them up for the exchanges.

Organizing for Action, an outside political group supporting Obama, will also be involved in the effort to promote the exchanges.

Administration officials say one-third of the young people they need to sign up for the exchanges live in California, Texas and Florida. Just over 50 percent are minorities and 57 percent are men.

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Judge Napolitano: Why We Should Mistrust the Government

It should come as no surprise that President Obama told Ohio State students at graduation ceremonies last week that they should not question authority and they should reject the calls of those who do. He argued that “our brave, creative, unique experiment in self-rule” has been so successful that trusting the government is the same as trusting ourselves; hence, challenging the government is the same as challenging ourselves. And he blasted those who incessantly warn of government tyranny.

Yet, mistrust of government is as old as America itself. America was born out of mistrust of government. The revolution that was fought in the 1770s and 1780s was actually won in the minds of colonists in the mid-1760s when the British imposed the Stamp Act and used writs of assistance to enforce it. The Stamp Act required all persons in the colonies to have government-sold stamps on all documents in their possession, and writs of assistance permitted search warrants written by British troops in which they authorized themselves to enter private homes ostensibly to look for the stamps.

These two pieces of legislation were so unpopular here that Parliament actually rescinded the Stamp Act, and the king’s ministers reduced the use of soldier-written search warrants. But the searches for the stamps turned the tide of colonial opinion irreversibly against the king.

The same king also prosecuted his political adversaries in Great Britain and here for what he called
“seditious libel” – basically, criticizing the government. Often that criticism spread and led to civil disobedience, so the British sought to punish it at its source. The prosecutions were so unpopular here, and so contrary to the spirit of what would become the Declaration of Independence, that when the British went home and the Framers wrote the Constitution and the Bill of Rights was added, the First Amendment assured that the new government could not punish speech.

Yet barely 10 years into “our brave, creative, unique experiment in self-rule,” in the infamous Alien and Sedition Acts, Congress at the instigation of President John Adams criminalized
free speech that was critical of the new government.

How did it come about that members of the same generation – in some cases the very same human beings – that declared in the First Amendment that “Congress shall make no law … abridging the freedom of speech” in fact enacted laws that did just that?

As morally wrong, as violative of the natural law, as unconstitutional as these laws were, they were not historical incongruities. Thomas Jefferson – who opposed and condemned the acts (he was Adams’ vice president at the time) – warned that it is the nature of government over time to increase and of liberty to decrease. And that’s why we should not trust government. In the same era, James Madison himself agreed when he wrote, “All men having power should be distrusted to a certain degree.”

The Alien and Sedition Acts were but the beginning of a long train of government abuses visited upon people in America as a consequence of the “experiment in self-rule.” I am not quoting Obama’s Ohio State speech to nitpick, but rather to establish a base line for my argument that he rejects core principles and historical lessons and, most troubling, the natural law itself when he opines that government should be trusted because it has gained power via self-rule.

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http://lewrockwell.com/napolitano/napolitano100.html

Reuters: Fight expected in House on online sales tax

The Senate voted overwhelmingly on Monday to give states the power to enforce their sales tax laws on online purchases, but the legislation faces a tougher fight in the Republican-controlled House of Representatives.

The Democratic-controlled Senate voted 69 to 27 to back the measure, which pits brick-and-mortar stores like Wal-Mart Stores Inc and cash-hungry state governments against such Web retailers as eBay Inc and Republicans wary of new tax measures.

“Call me a conservative, but I believe the right approach to tax fairness is to reduce rates — not force higher rates onto others,” said Tom Graves, a House Republican from Georgia.

House Speaker John Boehner plans to send the bill to the House Judiciary Committee, a senior Republican aide said. That will mean hearings ahead. The Senate uncharacteristically bypassed this step.

Judiciary Committee Chairman Robert Goodlatte, a Republican, has reservations about the legislation, including its complexity and potential impact on small businesses, a spokeswoman said.

Goodlatte has yet to schedule any hearings on it, she said.

Backers of the measure include major traditional retailers Wal-Mart andBest Buy Co Inc, as well as e-tailing giant Amazon.com Inc, which wants to simplify its U.S. state sales tax payments.

Opponents include many other online merchants such as eBay, Overstock.com Inc and anti-tax activist Grover Norquist. Lawmakers from states without sales taxes – like Montana, Oregon and New Hampshire – largely oppose the measure.

States that charge sales tax have largely been unable to require e-tailers to collect it from purchasers unless the e-tailer had a physical presence in the state. Otherwise, consumers are supposed to pay the tax, but very few do.

Some states have made separate arrangements with Amazon on the issue, while others have not.

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Lew Rockwell: Another Nail in the Neocon Coffin

The recent opening of the Ron Paul Institute for Peace and Prosperity was a watershed moment in American history. There has never been anything quite like it. Ideologically diverse, the Ron Paul Institute reaches out to all Americans, and indeed to people all over the world, who find the spectrum of foreign-policy opinion in the United States to be unreasonably narrow. Until Ron Paul and his new institute, there was no resolutely anti-interventionist foreign-policy organization to be found.

Neoconservatives have not responded warmly to the announcement of Ron’s new institute. Whatever their particular gripes, we can be absolutely certain of the real reason for their unhappiness: they have never faced systematic, organized opposition before.

The Democrats would see the earth tumble into the sun before supporting nonintervention abroad, so they pose no fundamental problem for the neocons. Ron Paul, on the other hand, is real opposition, and he can mobilize an army. The neocons know it. What’s Tim Pawlenty up to these days? Where are his legions of well-read young fans who seek to carry on his philosophy? You see the point.

For the first time, strict nonintervention will have a permanent voice in American life. It is another nail in the neocon coffin. The neocons know they are losing the young. Bright kids who believe in freedom aren’t rallying to Mitt Romney or David Horowitz, and, like anyone with a critical mind and a moral compass, they are not going along with the regime’s war propaganda.

At this historic moment, I thought it might be appropriate to set down some thoughts on war – a manifesto for peace, as it were.

(1) Our rulers are not a law unto themselves.

Our warmakers believe they are exempt from normal moral rules. Because they are at war, they get to suspend all decency, all the norms that govern the conduct and interaction of human beings in all other circumstances. The anodyne term “collateral damage,” along with perfunctory and meaningless words of regret, are employed when innocent civilians, including children, are maimed and butchered. A private individual behaving this way would be called a sociopath. Give him a fancy title and a nice suit, and he becomes a statesman.

Let us pursue the subversive mission of applying the same moral rules against theft, kidnapping, and murder to our rulers that we apply to everyone else.

(2) Humanize the demonized.

We must encourage all efforts to humanize the populations of countries in the crosshairs of the warmakers. The general public is whipped into a war frenzy without knowing the first thing – or hearing only propaganda – about the people who will die in that war. The establishment’s media won’t tell their story, so it is up to us to use all the resources we as individuals have, especially online, to communicate the most subversive truth of all: that the people on the other side are human beings, too. This will make it marginally more difficult for the warmakers to carry out their Two Minutes’ Hate, and can have the effect of persuading Americans with normal human sympathies to distrust the propaganda that surrounds them.

(3) If we oppose aggression, let us oppose all aggression.

If we believe in the cause of peace, putting a halt to aggressive violence between nations is not enough. We should not want to bring about peace overseas in order that our rulers may turn their guns on peaceful individuals at home. Away with all forms of aggression against peaceful people.

(4) Never use “we” when speaking of the government.

The people and the warmakers are two distinct groups. We must never say “we” when discussing the US government’s foreign policy. For one thing, the warmakers do not care about the opinions of the majority of Americans. It is silly and embarrassing for Americans to speak of “we” when discussing their government’s foreign policy, as if their input were necessary to or desired by those who make war.

But it is also wrong, not to mention mischievous. When people identify themselves so closely with their government, they perceive attacks on their government’s foreign policy as attacks on themselves. It then becomes all the more difficult to reason with them – why, you’re insulting my foreign policy!

Likewise, the use of “we” feeds into war fever. “We” have to get “them.” People root for their governments as they would for a football team. And since we know ourselves to be decent and good, “they” can only be monstrous and evil, and deserving of whatever righteous justice “we” dispense to them.

The antiwar left falls into this error just as often. They appeal to Americans with a catalogue of horrific crimes “we” have committed. But we haven’t committed those crimes. The same sociopaths who victimize Americans themselves every day, and over whom we have no real control, committed those crimes.

(4) War is not “good for the economy.”

A commitment to peace is a wonderful thing and worthy of praise, but it needs to be coupled with an understanding of economics. A well-known US senator recently deplored cuts in military spending because “when you cut military spending you lose jobs.” There is no economic silver lining to war or to preparation for war.

Those who would tell us that war brings prosperity are grossly mistaken, even in the celebrated case of World War II. The particular stimulus that war gives to certain sectors of the economy comes at the expense of civilian needs, and directs resources away from the improvement of the common man’s standard of living.

Ludwig von Mises, the great free-market economist, wrote, that “war prosperity is like the prosperity that an earthquake or a plague brings. The earthquake means good business for construction workers, and cholera improves the business of physicians, pharmacists, and undertakers; but no one has for that reason yet sought to celebrate earthquakes and cholera as stimulators of the productive forces in the general interest.”

Elsewhere, Mises described the essence of so-called war prosperity: it “enriches some by what it takes from others. It is not rising wealth but a shifting of wealth and income.”

(5) Support the free market? Then oppose war.

Ron Paul has restored the proper association of capitalism with peace and nonintervention. Leninists and other leftists, burdened by a false understanding of economics and the market system, used to claim that capitalism needed war, that alleged “overproduction” of goods forced market societies to go abroad – and often to war – in search for external markets for their excess goods.

This was always economic nonsense. It was political nonsense, too: the free market needs no parasitical institution to grease the skids for international commerce, and the same philosophy that urges nonaggression among individual human beings compels nonaggression between geographical areas.

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