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Wednesday, May 29, 2013

'The Real IRS Scandal'

Linda Beale:

The Real IRS Scandal, ataxingmatter: ... It does not appear to be quite so clear that the IRS actions were either "outrageous" (as so many hopping on the IRS "scandal" bandwagon suggest) or even "inappropriate". ...

Most of the media--which is generally right of center--has foamed at the mouth over the "scandal", puffing it up to bigger and bigger proportions with each day. ... A great deal of that coverage (much of it from the right) involves super emphasis on the word "scandal" and not much emphasis on the underlying facts of the matter.

So kudos to the New York Times for a recent story on the issue that probes the question of politicking much more closely. Confessore & Luo, Groups Targeted by IRS Tested Rules on Politics, New York Times (May 26, 2013). See also Barker & Elliot, 6 things you need to know about dark money groups, Salon.com (May 27, 2013).

Here are the Times writers' descriptions of a few of the groups that applied for C-4 status and "cried foul" about the IRS's selection of them for closer scrutiny for politicking:

  • CVFC: "its biggest expenditure [the year it applied for C-4 status] was several thousand dollars in radio ads backing a Republican candidate for Congress"
  • Wetumpka Tea Party, Alabama: in the year it applied, it "sponsored training for a get-out-the-vote initiative dedicated to the 'defeat of President Barack Obama' "
  • Ohio Liberty Coalition: its head "sent out e-mails to members about Mitt Romney campaign events and organized members to distribute Mr. Romney’s presidential campaign literature"

As noted in the report, "a close examination of these groups and others reveals an array of election activities that tax experts and former I.R.S. officials said would provide a legitimate basis for flagging them for closer review." That is what the IRS is supposed to do, suggesting that much of the scandal mongering that is going on is more about furthering the anti-tax/anti-government rightwing goal of "starving the beast" than it is about ensuring that the law is appropriately enforced. The stakes are high, since the ability of politicking groups to use C-4 status permits high-powered donors and strategists to cloak their campaign activities behind the veneer of social welfare activity.

Which is probably why of the right-wing bloviators are bloviating over this in Congress, calling for jail time for IRS employees, calling for a special prosecutor, insisting that this is a "scandal" along the lines of Watergate that goes to the heart of Obama's presidency. Hogwash, folks, pure and simple. This so-called "scandal" is just another instance of right-wing obstructionism that is willing to sacrifice good government for maintaining or increasing political power.

    Posted by on Wednesday, May 29, 2013 at 12:24 AM in Economics, Politics, Taxes | Permalink  Comments (47)


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