Posts Tagged ‘IRS’

Obama uses IRS to retaliate against opponents

September 21, 2010

The Weekly Standard reports that Barack Obama may have seized private tax information provided by the IRS in order to retaliate against his political opponents.

In several speeches Obama singled out Americans for Prosperity, which is owned by two libertarian billioinaires, Charles and David Koch.  Koch Industries actively opposes Demoratic candidates.
But an attorney for Koch Industries–the parent company of Americans for Prosperity–charges that the Obama White House crossed a line in obtaining private tax information, which they use to bash organizations like Americans for Prosperity.
The smoking gun appears to be a statement made by a senior Obama official who told reporters about the scheme. According to the Weekly Standard:
“…a senior Obama administration official told reporters at an August 27 on-the-record background briefing on corporate taxes:
“So in this country we have partnerships, we have S corps, we have LLCs, we have a series of entities that do not pay corporate income tax. Some of which are really giant firms, you know Koch Industries is a multibillion dollar businesses. So that creates a narrower base because we’ve literally got something like 50 percent of the business income in the U.S. is going to businesses that don’t pay any corporate income tax. They point out [in the report] you could review the boundary between corporate and non-corporate taxation as a way to broaden the base.”
Full Story HERE, and be sure to read the comments!

FCC strikes at those that Blog: endorsements under fire

October 6, 2009

We told you that the FCC was about to begin regulating the internet, and no, not just about child porn and terrorism. It seems that endorsements will be targeted, and yes, by means of force and / or fear. For the moment, it appears that only money making is targeted. Soon though I can see them going after political blogs as well. The devil will be in the details to be sure, the new FCC Czar notwithstanding. To be sure, this has been in the works for some time, and in all honesty I simply cannot blame the current administration for dreaming up this authoritarian camels nose.

So? Full disclosure: I looked at my blogroll and sidebar and found, right there at the top, Front Sight Training. Yes they do charge for their services. They also have more give away programs than I can keep track of. Including a certificate that I was sent that is for a free course, of my choosing which to date I have not availed myself of. Then there is the Gun Owners of America, and the National Rifle Association. Both of which collect dues, and accept donations. I receive nothing from them other than using their “contact my representative” tools, and use some of their works on this blog, or in citations. On occasion I receive a hat or some other trinket. But never any actual money.

So there you have it. How long before the FCC uses the IRS to become their attack dog? How long until a pattern emerges where it will become obvious that Conservative, Libertarian, or Constitutionalists blogs are being targeted while left wing hit sheets like Moveon.org and the notorious Hufpo are allowed to spew hate and vindictive unabated?

Read on…

Bloggers who offer endorsements must disclose any payments they have received from the subjects of their reviews or face penalties of up to $11,000 per violation, the Federal Trade Commission said Monday.

The agency, charged with protecting consumer interests, had not updated its policy on endorsements in nearly three decades, well before the Internet became a force in shaping consumer tastes. The new rules attempt to make more transparent corporate payments to bloggers, research firms and celebrities that help promote a product.

“Given that social media has become such a significant player in the advertising area, we thought it was necessary to address social media as well,” said Richard Cleland, assistant director for the division of advertising practices at the FTC.

Full Story

Legal Tender: IRS Thuggery

August 27, 2009

Seems that the good folks that brought you the thuggery at the BATFE are onto another method of suppressing liberty and freedom. They cannot follow their own rule of law so they go after American’s to vent their anger and frustration. Downsize D.C. exposes this latest outrage from the people that brought you Ruby Ridge, and the Waco holocaust. Read on…

Quote of the Day: The government called three accountants to testify. The defense asked each one, “What is the proper way to calculate income for purposes of the Internal Revenue Code if you are paid in a gold coin that has a $50 face value on it?” All three of them responded, “I do not know; I’ll have to research that.” — Mike Zigler, reporting on the 2007 case against Robert Kahre that ended in a hung jury

Subject: How can legal tender be illegal?

Robert Kahre is facing up to 296 years in prison. His crime? He hired workers on mutually-agreed terms, and paid them in gold and silver dollars rather than in Federal Reserve dollars.

First, some background . . .

* The face value of the U.S. Mint’s gold and silver coins are legal tender, meaning they must be accepted in payment of debt
* But a Gold Eagle coin that has “$50” printed on it is legal tender only up to $50, while its gold content is worth about $1,000 in Federal Reserve notes
* No law or IRS regulation requires that receivers of Gold Eagles and other U.S. Mint coins must report the market value of the coins instead of the legal tender value

After extensively researching the issue, Kahre . . .

* hired workers as independent contractors, so he would not pay the payroll tax for their labor
* paid them in gold and silver coins, whose face value – that is, legal tender value – was so low that the workers legally didn’t have to report it as income to the IRS

For instance, if a worker was annually paid in gold coins with a legal tender face value of $2,000, the market value of the gold content in those coins could be $40,000, but only the legal tender face value of $2,000 would theoretically count as taxable income. That face value of $2,000 is low enough to be non-reportable to the IRS. But . . .

Even though the coins Kahre used were legal tender, the Justice Department alleged that Kahre’s system was a fraudulent, tax-evading scam.

We agree with Jacob Hornberger who asserts that the federal government’s prosecution of Kahre is self-contradictory . . .

* if you owe $100 in taxes and pay with gold coins with face values totalling $100, the IRS will accept the payment as $100; it could then sell the coins on the market for twenty times that amount and keep the difference. The government will accept your payment as “legal tender.”
* but if YOU receive gold coins from someone else in a private transaction, the IRS says you must report the market value of the coins, not the face value. That is, YOU CANNOT TREAT THE COINS AS LEGAL TENDER.

The government fears that if more people took the law at its word and behaved like Kahre . . .

* people would demand payment in the Mint’s gold and silver coins and have far fewer reportable “dollars” in income, meaning fewer people would pay income taxes
* the market would soon prefer the coins produced by the Treasury Department’s Mint that are regulated by law – not the inflated dollars created by order of the independent Federal Reserve Board
* good money (gold and silver) would drive out the bad (paper Federal Reserve Notes and electronic keyboard strokes), whereas the federal government needs inflated, deficit-driven money to pay for its endless wars, failed welfare schemes, and expanding police state

No wonder the government views Kahre as a threat, and is willing to made a mockery of its own legal tender laws to destroy him!

DownsizeDC.org, however, believes Kahre was on to something. That’s why we endorse the “Honest Money Act,” which would repeal the legal tender law that gives the Federal Reserve a monopoly over the money supply. This bill, along with the “Tax-Free Gold Act” and the “Free Competition in Currency Act,” is a plank in our End the Inflation Tax Campaign.

Repealing the legal tender law would foster the creation of HONEST free market money, and protect people from the Federal Reserve’s endless onslaught of legalized counterfeiting, which constantly reduces the value of your money.

Tell Congress to pass the bills in our End the Inflation Tax Campaign.

Use your personal comments to mention the hypocrisy involved in the Kahre case. If the feds are going to make it a crime to FOLLOW the legal tender law, then that’s just one more argument for repealing it. You can send your message here.

Thank you for being a DC Downsizer.

James Wilson
Assistant to the President
DownsizeDC.org

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