Category: Taxes

The Term for This Is Chillul Hashem*

In this case, it’s “Rabbi” Moshe Zigelman, who is refusing to testify in a money laundering and tax evasion trial:

As U.S. District Judge Margaret Morrow contemplated federal law from her bench Wednesday morning, more than a dozen ultra-orthodox Jewish men with yarmulkes and sidelocks looked on in the courtroom. One held open a gilt-edged, elaborately embossed copy of the Shulchan Aruch, a book of Jewish law, tracing lines of the Hebrew text with his finger.

Appearing before the judge was Rabbi Moshe Zigelman, a 64-year-old devout Hasid who was refusing to testify before a federal grand jury, citing an ancient Jewish principle that forbids informing on other Jews.

Zigelman was ordered to testify in a tax-evasion case involving his Brooklyn-based Hasidic sect Spinka. He had earlier invoked the same principle, known as mesira, when he pleaded guilty to his part in the scheme in 2008 but refused to cooperate with authorities or testify in trial. He was sentenced to two years in prison.

What was going on here is that they were accepting “donations”, which the donors declared on their taxes, and then, after taking about 10-20% vigorish, they funneled funds back to the donors via an Israeli bank.(Wiki here)

First, lets be clear that clergy privilege does not apply here. This creep was a co-conspirator, not someone providing counseling.

What’s more, according to Shmarya Rosenberg’s excellent analysis, as well as those of normative Jewish scholars, mesira does not apply:

There are textbook exceptions to mesira even for those who hold that mesira applies in a democracy.

One of those exceptions is when the government knows certain people are guilty but needs testimony from one of them or another Jew to convict or capture the others. (In other words, there is a difference between speculation and knowledge.

Another exception is when refusing to give the government the information makes it seem as if Jews (or Orthodox Jews) do not follow or respect the country’s laws.

Hasidim use mesira to hide crimes and to enforce order in their communities.

It has nothing to do with the original intent of the mesira law, which was meant to save Jews from unjust punishments meted out by antisemitic governments, and from the unscrupulous Jews who used informing to hurt business opponents and social enemies, to extort them, and to gain favor from antisemitic government officials.

But in a democracy like the US, the fear of antisemitic unjust punishments does not apply.

The law of mesira would then only apply to spiteful informing done to settle personal grudges and the like, and it would not apply if the government was already convinced the subject is guilty.

In Rabbi Moshe Zigelman’s case, the government already knows Zigelman is guilty of money laundering, and it has already put the Spinka rebbe and others in prison. And it knows there are dozens, if not hundreds, of other co-conspirators, and it knows many of their names.

This is actually far more charitable than I would be.

Zigelman is not just a witness, he is an active co-conspirator, who is using mesira to cover his own corrupt tuchas.

It is also, of course a Shanda before the Goyim, in that it allows the antisemites of the world to claim that Jews consider themselves above the law and cover up for each other.

This makes a mockery of the concept of Or LaGoyim,, which stipulates that Jews are to be held to higher standards, and not cover up each others corruption.

*Literally, a ““Desecration of God’s Name.”
Ass.
Light unto the nations.

Labor Day News that Will Be Thoroughly Buried

Did you see the story on the news about thousands of nurses lobbying congressmen for a tax on financial transactions fund essential services and infrastructure:

From the Atlantic to the Pacific, an estimated 10,000 nurses and community participants joined actions in 21 states today demanding immediate attention to the economic crisis to heal America.

They called on Senators and Congress members in their local district offices to pledge to “support a Wall Street transaction tax that will raise sufficient revenue to make Wall Street pay for the devastation it has caused on Main Street.”

Did you hear about that on the news?

Neither did I.

(rest of press release after the break)

Events from soup kitchens to feeding the hungry, to community speak outs, to street theater took place from urban centers including Boston, Chicago, San Francisco, and Orlando, to smaller towns, such as Corpus Christi, TX, Marquette, MI, and Dayton, OH. National Nurses United, the largest U.S. union of nurses with 170,000 members, sponsored the actions.

In Richmond, VA, 120 RNs and allies descended on the office of House Majority Leader Eric Cantor and were greeted by a squadron of police. The RNs responded with singing and a large picket line. Cantor’s office invited a delegation to meet with his chief of staff. Fifteen constituents lead by NNU nurses held the meeting.. Cantor’s staff heard moving testimony and said the congressman would “respond.” The local CBS and NBC stations filmed outside, as they were not allowed in. A “Lady Liberty” character greeted the delegation on Cantor’s office lawn as it exited the meeting, and heard stories of the pain caused on Main Street by Wall Street.

“America’s nurses every day see broad declines in health and living standards that are a direct result of patients and families struggling with lack of jobs, un-payable medical bills, hunger and homelessness. We know where to find the resources to bring them hope and real solutions,” said NNU Co-president Karen Higgins, RN, outside Cantor’s office.

Ringing a bell and shouting “Oye Oye,” a town crier dressed in colonial attire drew a crowd of nearly 200 nurses, activists and passersby as he decried the reckless actions of Wall Street and its impact on the working people of Boston’s Main Street in front of the office of Senator Scott Brown.

Watch a video of the Boston event at this link http://www.youtube.com/watch?v=ejgeLElHVkI and see a photo below.

In Pueblo, CO, a pledge delivered to Senator Udall asked “which side is the senator on: Wall Street or Main Street?”

One hundred people attempted to enter Senator Toomey’s office near Philadelphia but were blocked by security guards. At Rep. Peter King’s Long Island, New York office, 50 nurses and supporters entered his office to serve up the pledge but were kept out. See photo below.

Chicago’s nurses sang the blues as hundreds of nurses and others gathered in support of the pledge. See photo below.

The staff of Senator Rubio in Orlando, FL is accompanying nurses to feed local homeless. In downtown San Francisco a soup kitchen was assembled to feed the hungry and drew more than 500.

And outside the office of Rep. Darryl Issa, north of San Diego, a crowd of 300 nurses, including members of other unions and area residents, expressed outrage at allegations of self dealing by the congressman. An RN delegation entered his office and delivered the pledge. Outside, community members shared stories of enduring economic hardships. See picture below.

Nurses visited home offices of Republicans and Democrats throughout the day with a common message – American families are hurting, and they need jobs, healthcare, housing, quality education, nutrition, and a secure retirement.

In addition, the RNs are releasing data where available contrasting contributions the legislators have received from Wall Street with the plummeting economic conditions in their districts that has left substantial numbers of their constituents in crisis.

Rep. Paul Ryan, for example, a Wisconsin Republican, has accepted $2,417,672 in campaign contributions from Wall Street financial institutions the past 12 years, as a champion for Wall Street interests. But the payoff has been small for his district where 69,241 people are uninsured, 22,884 are dependent on food stamps, and 20,394 children and 7,939 seniors live in poverty.

Similarly, Sen. Michael Bennett of Colorado, a Democrat, has collected $2,409,806 in campaign contributions from Wall Street interests while his state languishes in the top 10 in foreclosures, has 184,689 children in poverty, 116,941 people dependent on food stamps, and 13,390 homeless.

NNU will also be calling for the establishment of Main Street commissions to push real solutions for Main Street communities, such as the Wall Street financial tax, in comparison to what NNU Executive Director RoseAnn DeMoro calls “the Wall Street ‘super committee’ set up in the recent debt ceiling deal whose main goal seems to be more cuts in programs that help people to funnel more resources to Wall Street and foreign banks and investors.”

A tax on Wall Street trading of stocks, derivatives, currencies, credit default swaps, and futures – which many other nations have now adopted – could raise hundreds of billions of dollars to pay for programs that “are desperately needed to reduce the pain and suffering felt by so many who feel abandoned across this nation,” says NNU Co-President Deborah Burger, RN.

“It’s time for Wall Street financiers, who created this crisis and continue to hold much of the nation’s wealth, to start contributing to rebuild this country, and for the American people to reclaim our future,” says DeMoro.

The $2.4 trillion in government bailouts to financial and other institutions already spent, noted DeMoro, alone would have funded 63 million jobs at the national median level of about $39,000 a year. “Instead we have over 25 million people who are unemployed or underemployed, and in the past decade U.S. based corporations added 2.4 million jobs in foreign countries while divesting in America, cutting 2.9 million jobs in the U.S.”

“We need to reallocate the money back to our communities, and our actions on September 1 are going to raise the demand to a new level to heal our nation,” said NNU Co-president Jean Ross.

Learn More About the Main Street Contract for America and Get Involved Here

Click here for information on the National Nurses United

It’s Probably Just a Bait and Switch…

But as a part of the joint announcement by Sarkosy and Merkel on greater EU integration to fix the current series of debt crises they have proposed to impliment a Tobin tax on financial transactions:

The French president, Nicolas Sarkozy, and German chancellor, Angela Merkel, announced the dramatic proposals after a two-hour mini-summit. They also called for the imposition of tighter restrictions on member country’s deficits and announced a synchronising of the tax policies of their own two countries. Sarkozy has also secured the support of Merkel for a Tobin tax – a financial tax on all international transactions – to raise funds to ease the crisis engulfing the European economy.

The amount of money generated by a Tobin tax would actually be smaller than generally anticipated, because much of the financial activity is pure short speculation, where extremely short term bets with payoffs of a fraction of a percent, create profits for doing nothing.

The banks suggest that such a tax is a bad idea because it would discourage such activity, but I consider it to be an even more valuable feature than any potential revenue raised.

Much of the unproductive rent seeking that occurs in our economy is an artifact of just such a behavior.

So, to paraphrase this xkcd cartoon, Mission F%$#ing Accomplished:

Of course, in reality, it’s just smoke and mirrors:  The Tobin Tax proposal is just a way to sell their idea for a European balanced budget amendment, and at the end of the day, the Tobin Tax will go away, and the Banksters will get what they want, because that’s how the game is played.

Mark Thoma has a good analysis of the tax, and you can also check out the Wiki page.

Some Sanity on Non-Profits in Illinois

In Illinois, the state Department of Revenue regularly certifies non-profits, with the idea making sure that they behave in a not-for-profit manner, as opposed to accumulating mountains of cash and overpaying their executives.

Well they have now denied tax exemptions to three hospitals, and are reviewing 15 more because they are abrogating their responsibility to serve their communities:

The Illinois Department of Revenue has denied property tax exemptions to three hospitals and is reviewing applications from 15 others, officials said Tuesday, signaling that the state plans to get tough on nonprofit hospitals it believes operate more like businesses than charities.

At stake are millions of dollars in tax revenues that the hospitals could contribute to cities, parks and schools by paying taxes.

Northwestern Memorial’s Prentice Women’s Hospital in Chicago’s Gold Coast neighborhood, Edward Hospital in Naperville and Decatur Memorial Hospital in Decatur were informed of the decisions Tuesday morning, Revenue Department officials told The Associated Press.

They follow last year’s Illinois Supreme Court ruling that found a central Illinois hospital wasn’t doing enough free or discounted treatment of the poor to qualify for an exemption, obligating it to pay $1.2 million in local property tax payments per year.

The hospitals have 60 days to ask an administrative law judge to review the decisions. In Illinois, property taxes are collected by county governments, and the Department of Revenue decides which institutions are eligible for tax exemptions.

This is actually something bears on my personal past, not from the hospital angle, but from the undeserving non-profit angle.

A little over 20 years (!) ago, I incorporated a not-for profit tax exempt corporation as a 501(c)3 that puts on Science Fiction conventions, which in that case meant that I represented it as an educational organization.  While technically legal, I’ve always felt that the organization was more properly a 501(c)7, a social organization.

I filled out the forms, and chased them through the state and federal bureaucracies.  And it was all technically legal, and I did not materially misrepresent anything in the applications

That being said, even at the time, I felt that this was an undeserving use of this status.

I was aware of the differences between a (c)3 and a (c)7 at the time, but we felt that we needed the ability for people to deduct donations, and (more importantly) the postage discount available for the (c)3.

The more scrutiny that is placed on organizations that use these sorts of status as a shield (501(c)4 tend to be used as political front group, for example), the better.

There are a lot of slimy things under the rocks that are section 501 of the IRS code.

H/t Washington Monthly.

Baucus?!?!?!?! Max F%$#ing Baucus?!?!?!?

So Harry Reid has appointed his 3 Democrats to the “Super Committee”, and they are John Kerry, Patty Murray, and Max Baucus.

Here is my rundown:

  • Max Baucus is the least Democratic Democrat in the US Senate.  He is more responsible for killing the public option than anyone in the senate.
  • John Kerry is angling for the Secretary of State appointment after Hillary Clinton resigns, probably after the election, and so is in Obama’s, and Secretary of Defense Panetta’s pocket.
  • Patty Murray is the Senator from Boeing.

So Reid has appointed 3 people who will blink at the possibility of the automatic cuts to defense, and Republicans desperate to get Democrats to join in their “Kill Medicare” suicide pact.

The rule is that a majority vote passes along a non-debatable, non-filibusterable, and non amendable motion to both houses, so if just one Dem flips *cough* Baucus *cough*, we see something that cuts Medicare, Medicaid, and Social Security, both gutting the safety the safety net, and saving the Republicans from the Paul Ryan budget.

I honestly believe that this is intentional.

It will condemn the Democrats to minority party status for a generation, because it means that we stand for nothing.

A ‘Phant Disavows Norquist

If he is the only ‘Phant to repudiate his “no taxes of any kind” pledge to Grover Norquist, he’s toast, but if he is the first of a few, i.e. double digits, he becomes a a leader of some sort of wing of the Congressional Republicans

Still, it’s a gutsy move:

In answer to one question, the 1st District Republican congressman revealed he informed Grover Norquist and his anti-tax organization he no longer is committed to that organization’s pledge to oppose any form of tax increases.

“I did sign that pledge when I was first running” for the House in 2004, Fortenberry said. “I no longer sign any pledges.”

A pledge “restrains your ability to think creatively,” he said, noting Norquist attempts to interpret and define what is considered a tax increase.

“I informed the organization I don’t consider (the earlier pledge) binding,” Fortenberry said. “I don’t care to be associated with it. It’s too constraining.”

Fortenberry said he remains committed to reducing federal spending, but suggested an openness to tax reform.

“We have a broken tax code that is skewed to the wealthy and corporations (who) know how to move capital around,” he said.

Tax reform could close loopholes and perhaps lower tax rates, Fortenberry said, and the result might be more revenue.

Not only is he saying that taxes are on the table, but he’s talking about how fat cats game the system.

Note that this from a Republican, from Nebraska.

I don’t expect sanity to break out in the Republican party, but if this is the first step toward Grover Norquist becoming irrelevant, it’s a good step, assuming that he is not replaced by someone even more evil and crazy.*

H/t Think Progress.

*Considering the history of the Republican Party, which makes me yearn for the intellect, liberalism, and moral rectitude of Richard Nixon, I would say that the chance of him being replaced by someone more evil are pretty good

Not Enough Bullets…

Just so you know, pay about 18% of their income in federal taxes:

The 400 richest Americans used to pay 30% of their income on the average to Uncle Sam. Today, they pay 18% on the average, according to Steve Rattner, a Wall Street financier, who just presented these figures on Mornings With Joe,MSNBC.

The main reason for the drop in their tax rate of some 40% is the tax cuts by George Bush in 2003, taking the rate paid on dividends and capital gains down to 15%. This reduction in the investment class’s taxes powered the bull market in stocks from the fall of 2003 until the fall of 2007.

Shockingly, the plan to raise the debt ceiling collects nothing from the wealthiest Americans to reduce our budget deficit. The Republican right wing holds the Obama White House hostage. It’s a sad day for the principle of sharing the pain equitably

Obviously, we need to make major cuts to Social Security, Medicare, and Medicaid.

We really need to go back to a 94% maximum tax rate.

Lucy Will Hold The Football This Time … Really

The “Gang of Six” in the Senate, it’s back:

The once moribund Senate “Gang of Six” gained new life Tuesday after Oklahoma Sen. Tom Coburn unexpectedly rejoined the group and President Barack Obama praised a new effort to cut the debt by as much as $3.7 trillion over the next decade.

Speaking at the White House Tuesday afternoon, Obama gave the Gang of Six a big boost, saying its proposals were “roughly” in line with his negotiations during the stalled debt-ceiling talks. But he said there would need to be broader buy-in to the proposal and he said Congress needed to have “fail-safe” plan, being drafted by Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell, to avert a default.

“I think we’re now seeing a potential for a bipartisan consensus,” Obama told reporters.

And Obama is not just positive about this development, he is a “ferocious advocate” of capitulation masquerading as bipartisanship:

President Obama heaped praise on a deficit-reduction proposal produced by bipartisan group of senators known as the “Gang of Six,” calling it a “significant step” and arguing that members on both side of the aisle are beginning to coalesce around a balanced approach involving cuts to entitlements and tax increases.

“We’re in the same playing field and my hope is that we start gathering everybody in the next couple of days” on an agreement, Obama told reporters in a brief appearance in the White House briefing room Tuesday.

This is just pathetic.

In response to Republicans taking “a shellacking” because of their attempts to dismantle Medicare and Medicaid, Obama has signed on to a plan that calls for cuts to Medicare and Medicaid.

Yesterday’s quote of the day shines a bit more light on this problem.

Barack Obama’s fetish regarding “Responsibility without conviction,” is more than “weak”.  It is in fact profoundly irresponsible.

Speaking as a parent, and someone who plays an adult on the internet, sometimes adults actually have to deal with children, and, “I’ll give you another ice cream if you stop ……… Well OK, you did not stop, but here is your ice cream anyway,” is not responsible anything.

I think the idea that Barack Obama is the responsible adult in the room is a delusion, and one that is most firmly held by one one Barack Hussein Obama.

Australia Intends to Institute a Carbon Tax

Well, this is a good policy, at least until 2015, when they turn the whole idea over to the Vampire Squid* and its ilk:

The Australian government has unveiled plans to impose a tax on carbon emissions for the worst polluters.

Prime Minister Julia Gillard said carbon dioxide emissions would be taxed at A$23 ($25; £15) per tonne from 2012.

The country’s biggest economic reform in a generation will cover some 500 companies. In 2015, a market-based trading scheme will be introduced.

(emphasis mine)

Once the market based trading scheme is implemented, we can expect to see the investment banks come up with all sorts of opaque trading schemes (Carbon Default Swaps anyone?) that will serve primarily as a means to extract fees and other rents from the process, and then we will see another orgy of fraud and speculation bring the market down.

Of course, this won’t happen immediately, particularly since there would be floor and ceiling prices for the first few years, but it will happen, and money that is extracted from the public will go to private speculators rather than the public good.

*Alas, I cannot claim credit for the bon mot describing Goldman Sachs as a, “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” This was coined by the great Matt Taibbi, in his article on the massive criminal conspiracy investment firm, The Great American Bubble Machine.

The Incredible Shrinking Speaker

John Boehner has decided to drop any attempt at a grand bargain with Obama, because he could get no one, not even the Majority Whip or Majority Leader, his closest lieutenants in the house, to agree to close a few tax loopholes in order to have Obama cut the Democrats throats with Social Security and Medicare cuts:

House Speaker John A. Boehner abandoned efforts Saturday night to cut a far-reaching debt-reduction deal, telling President Obama that a more modest package offers the only politically realistic path to avoiding a default on the mounting national debt.

On the eve of a critical White House summit on the debt issue, Boehner (R-Ohio) told Obama that their plan to “go big,” in the speaker’s words, and forge a compromise that would save more than $4 trillion over the next decade, was crumbling under Obama’s insistence on significant new tax revenue.

“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” Boehner said in a statement released less than 24 hours before the White House meeting was scheduled to begin. “I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase.”

Boehner’s decision leaves negotiators reexamining a less-ambitious framework — aimed at saving roughly $2.4 trillion over the next decade — that had been under discussion between Vice President Biden and a bipartisan group of lawmakers. But that framework is hardly complete; the group broke up last month when Republicans walked out over the tax issue.

The sweeping deal Obama and Boehner had been discussing would have required both parties to take a bold leap into the political abyss. Democrats were demanding more than $800 billion in new tax revenue, causing heartburn among the hard-line fiscal conservatives who dominate the House Republican caucus. Republicans, meanwhile, were demanding sharp cuts to Medicare and Social Security, popular safety net programs that congressional Democrats have vowed to protect.

There is only one way that I can see this debt limit thing, which is an artifact of what Obama wanted in December, turning out well, and that is by generating an export led recovery, and no small amount of inflation, if the dollar drops by 30+%.

That being said, while there House Speakers who have been profoundly weak, Tom Foley comes to mind, as does Tip O’Neill from 1981-83, I have never seen such a profoundly impotent speaker as Boehner. 

It’s stunning.

Steny Hoyer tells Boehner to Go Cheney Himself

Hoyer just said that Boehner won’t get the votes for raising the debt limit from his teabagger freshman, so he needs Democratic votes, and he won’t get any without a tax increase:

“I’ve told Mr. Boehner that I will help,” Hoyer said. “Now I’m not going to help on some draconian do it my way or the highway vote, but we Democrats are prepared to co-operate in order to assure that the creditworthiness of the United States is not put at risk and to move towards a fiscally responsible path…everything needs to be on the table, and when I say everything I mean everything…. Revenues need to be a significant part of it.”

…………

The Democrats’ vote-counter in the House of Representatives says the GOP will need his help to raise the national debt limit — but they won’t get it if they don’t put everything on the table, including tax revenues.

“Speaker Boehner needed Democratic votes to pass keeping government running, even at minimal levels,” Rep. Steny Hoyer (D-MD) told reporters at his weekly Capitol briefing, in response to a question from TPM. “So my presumption is [Senator] Schumer is right.”

That’s more balls than I expected from Hoyer, who seems to spend most of his time sabotaging the efforts of real Democrats.

Finally, a Lawsuit

Two Michigan counties have filed lawsuits against many the GSEs accusing them of defrauding them of title transfer fees:

Two Michigan counties, Oakland and Ingham, are suing some of the biggest players in the mortgage industry for what one official called a “fraudulent conspiracy” to avoid paying state and county property transfer taxes.

Oakland County Treasurer Andy Meisner is suing mortgage giants Freddie Mac and Fannie Mae in the nation’s first federal lawsuit seeking to recoup tax payments never paid on properties that were transferred several times during the height of and during the foreclosure crisis that has gripped the nation over the last few years,

“I do think it’s fraudulent and I do think there is strong evidence to suggest there has been fraud. I do think it is a fraudulent conspiracy,” Meisner said. “We are identfying the people involved and we are systematically working to hold them accountable.”

While Ingham County Register of Deeds Curtis Hertel Jr. would not go so far as to allege a “fraudulent conspiracy” he says that the aim of his lawsuit is to find out just how deep the malfeasance went.

“This is about getting to the truth,” Hertel said Wednesday, standing in front of one of the many foreclosed and empty houses in the city of Lansing. “I believe the crisis has been further exacerbated by a systematic attempt to avoid state transfer taxes in my office.”

Gee, you think?

Not that this lawsuit is only against Fannie Mae and Freddie Mac, and does not reference the fraudulent (at least on a transfer tax basis) conveyances that were done through MERS, which should be at the top of the list, because, as Willie Sutton said, “It’s where the money is.”

In the case of Fannie and Freddie, they are claiming that they are exempt because they are government agencies (they are not), and because there is statute exempting them (I cannot find one).

H/t Naked Capitalism.

Schadenfraude Alert

It looks like a lot of big anonymous donors to political advcocy groups are facing a tough choice, pay a 35% gift tax, or contest the rules in open court, where your anonymous donations to Karl Rove will become a matter of public record:

The Internal Revenue Service appears to have begun to enforce a tax on gifts to the non-profit organizations that were a key vehicle for anonymous politics in the last five years and had promised to play a large role in the presidential cycle, a move which could reshape the place of money in politics in 2012.

“It appears that the IRS Estate and Gift Tax team has also started paying attention to 501(c)(4) organizations,” a Los Angeles tax lawyer who has followed the issue closely, Ofer Lion, wrote in a memo to clients today.

Gifts to other political organizations are not taxable under federal law, and lawyers informally say many donors do not typically pay the gift tax — which may run as high as 35%, mirroring income tax rates — for contributions to 501(c)4s.

The IRS focus would only apply to quite large donors: the first $13,000 annually are exempt. The rest of the contributions, however, reduce a donor’s lifetime tax exemption, which stands currently at $5 million but stands to drop to $1 million in 2013, a fact which would mean a donor’s heirs lose substantially more to estate taxes, including potentially a “clawback” of money that’s already been given away back into the taxable estate.

………

“[C]ontributors wishing to remain anonymous may feel the need to pay sizable gift tax assessments rather than challenge the tax in open court, and on the public record,” Lion wrote.

My heart bleeds borscht for the Koch suckers who now face Morton’s Fork.

More of This

In California, Republicans are refusing to even allow tax increases to be voted on, so Treasurer Bill Lockyer and Senate President Pro Tem Darrell Steinberg are suggesting that cuts be targeted in Republican districts:

With no agreement in sight on how to close the state’s remaining $15.4 billion deficit, some Democrats are discussing targeting GOP districts with steeper cuts if legislative Republicans will not vote for a solution that includes taxes.

“You don’t want to pay for government, well then, you get less of it,” Senate President Pro Tem Darrell Steinberg told reporters Wednesday.

If other options fail, the Sacramento Democrat said he is willing to consider a targeted cuts approach like one laid out by Treasurer Bill Lockyer, who has suggested that an all-cuts state budget should focus on the districts of lawmakers who oppose putting $11 billion in tax extensions before voters.

“When it comes to kids or the vulnerable, I wouldn’t want to make distinctions between who lives in a Democratic district and who lives in a Republican district, but when it comes to sort of basic services, convenience services that affect adults … I have an open mind,” he told reporters after speaking at a Sacramento Press Club luncheon.

What he is referring to here as “convenience services” is (I hope) things like DMV offices, vehicle inspection stations, agricultural extension offices, etc.

Good for him.

One of the reasons that there are so many no taxes ever lunatics out there is because they manage to structure taxation, and benefits, such that other people pay for their services, and this needs to stop.

Barack Obama Just Came Out Against the Separation of Church and State

In Arizona Christian School Tuition Organization v. Winn, the Supreme Court ruled that a taxpayer had no standing to sue when a state provided tax credits that were directed towards supporting religious schools.

I was appalled, but viewed this as a result of decades of ‘Phant vote court stacking.

What I missed was the fact that the Obama administration, despite the fact that there was no need to because there was no equivalent federal law, filed a brief in support of tearing down the wall between church and state:

The Obama administration’s brief supporting an Arizona law which creates a tax credit system which substantially benefits religious schools is inexplicable and deeply disappointing. Arizona Christian School Tuition Organization v. Winn (Nos. 09-857 and 09-991), to be argued on Wednesday, November 3, does not involve a federal law and did not require any participation by the Obama administration. Yet, the Solicitor General’s office filed a brief for the United States which argues that taxpayers lack standing to challenge a state tax program which subsidizes religious schools and that this does not violate the Establishment Clause of the First Amendment. It is exactly the brief that would have been expected from the Bush administration, but disturbing to have come from the Obama Justice Department.

A state statute allows Arizona taxpayers to receive a tax credit of up to $500 on a dollar-for-dollar basis for donating to a student tuition organization (“STO”). Arizona’s largest STOs (as measured by the amount of contributions) each limit scholarships to certain religious schools. The largest restricted scholarships are to students attending Catholic schools in the Phoenix diocese; the second largest restricts scholarships to students who attend evangelical Christian schools. Although the statute required that STOs not discriminate on the basis of race, color, handicap, familial status or national origin,” it did not specify eligibility requirements. Thus, individuals would receive a tax credit if they made a contribution to an STO and they could designate their money for an STO that supported only schools of a particular faith.

………

Since the Reagan administration, conservatives have sought to eliminate the notion of a wall separating church and state. It is sad and very troubling to see the Obama administration lending its support for this effort.

One of the things that you hear in liberal circles frequently is that Ronald Reagan would be too much of a flaming liberal for today’s Republican party.

Looking at Barack Obama, I’m beginning to think that my assessment of him as a Reagan Democrat is too charitable: He is a Reagan Republican.

The irony here is that Ronald Reagan was easily the least religious president of the past 50 years, of course.

The Real History of the Boston Tea Party


I love me some good history

It appears that the Boston Tea Party, i.e the dumping of tea in Boston harbor, was not about “Taxation Without Representation,” but rather about tax cuts without representation.

The issue at hand was the fact that the East India Tea Company was granted a specific exemption to the tax on tea, which allowed them to drive it’s small “Yankee Trader” competitors.

So here is a note to the Teabaggers out there, it ain’t about taxes, it’s about sweetheart deals to big business.

In your face, Dick Armey and the Koch brothers.

H/t Crooks and Liars

I Don’t Know Whether to Laugh or to Cry


I give up!

Jon Stewart riffs on the fact that while every right wing ratf%$# out there can say that unions are causing deficits, it appears that no one at all gives a damn that GE effectively paid a negative sixty percent income tax in 2010, while cutting US jobs and shipping them overseas.

Of course, there was but one thing that the Obama administration could do: Make GE CEO Jeffrey Immelt the chairman of a prestigious commission to explore how to create jobs in the United States.

I think that between a choice of laughing and crying, I will go with sleeping like a baby: I will wake up every few hours screaming.

Put a Fork in it, MERs is Done

Mortgage Electronic Registration Systems (MERS) has been under increasing pressures for its legal basis (it appears that they never registered loan transfers), it’s corporate structure (a few dozen employees, and tens of thousands of “Vice Presidents” who were actually employed its clients, so it functioned as principal and agent), and its shoddy record keeping.

Well, MERS is now done.

First, it instructed it clients not to foreclose in its name, then Essex County, MA and Guilford County NC both filed multimillion dollar lawsuits against the entity for illegally evading county recording fees, and now Freddie Mac has said that servicers of its loan portfolio will no longer be allowed to foreclose in MERS’s name.

So, the PTB have come to the conclusion that MERS is complete sh%$, both from a legal as well as a factual perspective.

Of course, they knew this 15 years ago, when MERS was founded, but now they realize that he courts are recognizing it as well.

One question though:  Why is no one going to jail?

Nope, No Corruption Here. None At All

Allegedly Democratic Co-Chair of Obama’s deficit reduction (aka cat food) commission, Erskine Bowles, was recommending changes to Social Security that would likely lead to its privatization while on the board of directors of Morgan Stanley:

Erskine Bowles, co-chairman of President Barack Obama’s debt-reduction commission, said his job as a Morgan Stanley (MS) director didn’t influence his work on the panel’s recommendations for balancing U.S. spending, which said taxes are sapping the competitiveness of companies.

He and the commission’s co-chief, Alan Simpson, told an audience of bankers, investors and executives at an Economic Club of New York lunch meeting March 7 that the country may face a crisis if it doesn’t rein in the debt. Bowles, 65, has been a member of the bank’s board since the end of 2005.

“It didn’t have any effect on me at all,” he said in an interview after the lunch, when asked if his work for New York- based Morgan Stanley influenced the commission’s December proposals. “We tried to gore every ox we could.”

He also said that “The check is in the mail, this won’t hurt a bit, I’ll respect you in the morning, and I won’t cum in your mouth.”

Note also that Barack Obama was the one what hired these guys.

Why a Carbon Tax is Superior to Cap and Trade

In either case, the consumer pays for it, but a carbon tax can go to things like government programs (Or, if you are of that ilk, per person rebates that favor the less well off), while carbon trading enriches polluters, the Vampire Squids of the world, and people who game the system for personal profit:

The European Commission suspended trading in greenhouse gas emissions permits on Wednesday for at least a week after the theft of permits worth millions of euros via online attacks.

The Emissions Trading System was a target of “recurring security breaches” over the last two months, the commission, the executive agency of the European Union, announced on its Web site Wednesday.

The commission said it needed to shut the system down until at least Jan. 26 because “incidents over the last weeks have underlined the urgent need” for enhanced security measures.

The attacks raised new questions about the viability of Europe’s main tool to combat a rise in greenhouse gases in the atmosphere.

The stolen permits are part of Europe’s effort to cap the amount of carbon dioxide, the main greenhouse gas, that companies may emit each year. Europe’s system is the world’s largest market for greenhouse gas emissions credits.

The only advantage to carbon trading is that it gives politicians the ability to give another revenue stream to their classmates from Ivy League/Oxbridge/Sorbonne/Etc. who work in investment banks.

It’s a giveaway to the investment banker, and an invitation to fraud, the case of hydroelectric plants in China without transmission lines to accumulate credits being just one such example.