Politics Billionaire tax leak deals Biden blow in getting GOP support for IRS funding
Biden's confiscatory tax plans unleash class warfare
Confiscatory tax policies make citizens worse off overall in the name of redistributing resources from the wealthy to the poor. But they ignore the fact that the taxes are imposed on those responsible for the investment that creates jobs. The new administration and its allies in Congress are trying to use the politics of envy and class warfare to argue that low- and middle-income can get ahead only with massive redistribution by the government, instead of economic growth spurred by a dynamic private economy driven by free choice.
The massive leak of billionaires' tax data has imperiled what support there might have been from Republicans to back President Joe Biden's plan to give more money and authority to the IRS.
On Tuesday investigative nonprofit organization ProPublicadetails about the tax returns of thousands of the nation’s wealthiest people, a leak it covered some 15 years. While there is speculation that the timing of the leak was political — Biden is seeking support to hike taxes on the wealthy — it also came out as Biden has suggested infusing billions of dollars into the IRS, a move that faces increasing headwinds from the scandal.
The Lab-Leak Trap
Recent coverage has ensnared readers in semantic quibbles, side points, and distractions. To focus better on what really matters, watch out for these traps:The No-Evidence TrapIt would be confusing—merely confusing—if no one could agree on the strength of the evidence for a laboratory accident. But certain pundits have suggested that we’re still completely in the dark.
Sen., the ranking member of the powerful Finance Committee, told the Washington Examiner on Thursday that after the tax leak, changes to IRS funding must be preceded by guarantees that taxpayer data is indeed secure.
“This data breach comes at a time when the administration is proposing additional funding for the IRS to massively and intrusively expand its access to data on individuals and companies,” the Idaho Republican said in a statement. “Taxpayers should be incredibly concerned about this breach, because if this information can ‘leak,’ anyone’s can."
“Before even considering additional funding, Congress and the American people need assurances that existing data at the IRS is guarded and secure,” he added.
Leak of billionaires' tax data draws GOP outcry over privacy
WASHINGTON (AP) — Republicans in Congress are alarmed by the leak of confidential IRS data to the investigative news organization ProPublica, enabling it to reveal that famous billionaires including Warren Buffett, Bill Gates and Mark Zuckerberg paid little in U.S. income tax at times. A senior IRS official said Thursday that a federal criminal investigation into the leak has been requested. Taking a detour from the debate over President Joe Biden’s tax overhaul plan, the GOP lawmakers are demanding to know how the private tax data was disclosed and they are pressing the Treasury Department and the IRS to pursue anyone who violated the law.
The scope of Biden’s proposed IRS overhaul is vast. The White House plan is to allocate $80 billion to the IRS to hire more staff and give it increased authority to crack down on tax cheats. The administration has anticipated that it can raise $700 billion in revenue over the next decade. It would also increase the sensitive info the IRS has access to by requiring banks to report annual account inflows and outflows.
Sen., the top banking committee Republican, called the release of the tax documents, whether by theft or leak, an “egregious violation of the public trust” in the IRS and said that while the Biden administration’s commitment to holding those accountable is appropriate, "damage has already been done.” He called upon IRS Commissioner Charles Rettig and Treasury Secretary Janet Yellen to keep lawmakers apprised of what is being done to address the matter.
Opinion: America's tax system is rigged to protect the rich and powerful
Jeffrey Sachs writes the US tax system is designed to protect wealthy individuals and powerful corporations, and it is breaking the country in more ways than one. Much of the Republican Party lives and breathes to protect the rich and powerful from paying taxes, and Democrats like Sen. Joe Manchin of West Virginia too often side with them. Meanwhile, public opinion -- strongly supporting higher taxes on wealthy Americans and corporations -- counts for little because the rich have undue influence over the political class. © Getty Images But the severity of the problem cannot be overstated.
“It is incumbent upon Commissioner Rettig and Secretary Yellen to detail to Congress the changes they will make at the IRS to try and ensure this does not happen again,” the Pennsylvania senator told the Washington Examiner.
Republicans have worked in recent years to limit IRS funding, especially in the aftermath of the controversy over the agency's admission in 2013 that it had targeted conservative nonprofit organizations for added scrutiny. And many Republicans were already wary of Biden’s IRS overhaul plan prior to the leak.
Still, GOP antipathy toward the IRS had thawed in recent years somewhat, thanks to the endorsement of added funding by Trump Treasury Secretary Steven Mnuchin and the 2019 enactment of.
Some Republicans expressed some degree of openness toward increasing IRS funding. Crapo, who told the Washington Examiner that assurances of security would have to be in place to consider more funding after the leak, has nonetheless expressed a willingness to help the IRS close the tax gap.
“There are useful, bipartisan issues worth pursuing regarding IRS funding, enforcement of our tax laws and taxpayer responsibilities, and the tax gap,” he said in a May letter to the IRS.
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The epidemiologist Marc Lipsitch explains that the risky virus research done at the Wuhan Institute has complex rootsProminent scientists long on the sideline, like Scott Gottlieb and Peter Hotez, have begun echoing calls for a deeper investigation. Both the National Security Council and the Director of National Intelligence have made a point of emphasizing their agreement with the previous administration that the pandemic’s origins are a very open — and very important — question.
But now, the path to increased funding is narrower.
On a phone call with reporters on Friday, Rep. Kevin Brady, the top Republican on the House Ways and Means Committee, was asked about what the impact of the leak has on Biden’s plans to increase funding to the IRS.
The Texas Republican said the IRS leak “has already come close to killing” Biden’s IRS expansion proposal, adding, “This has close to dealt a death blow to their efforts to become more invasive and intrusive into Americans’ lives.”
On Wednesday evening, several leading Republicansabout the tax returns being leaked in letters sent to Rettig and acting Treasury Inspector General Richard Delmar.
“Regrettably, it appears personnel with access to American’s personal and confidential information are again misusing protected information for political reasons,” five GOP senators wrote in a letter to Delmar. “Treasury and the IRS must hold accountable any and all individuals who broke federal law by inappropriately sharing the confidential tax information and tax returns of multiple Americans.”
Douglas O’Donnell, the IRS’s deputy commissioner for services and enforcement, told the House Ways and Means Committee on Thursday that the matter has been referred to several investigative bodies, including the Treasury Inspector General for Tax Administration, the FBI, and the United States Attorney’s Office for the District of Columbia. He said the IRS fully supports any investigations.
Biden and his aviators greet queen on a sunny afternoon
WINDSOR, England (AP) — President Joe Biden and his aviator sunglasses met Queen Elizabeth II on bright Sunday afternoon. The queen hosted the president and first lady Jill Biden at Windsor Castle, her royal residence near London. Biden flew to London after wrapping up his participation in a three-day summit of leaders of the world's wealthy democracies in Cornwall, in southwestern England. He arrived at the castle aboard the presidential helicopter and was ferried to the queen in a black Range Rover.
Still, even with investigations, the leak has shaken Republicans on Capitol Hill, who see the breach as an erosion of public trust. Some Democrats havefor increased taxes for the wealthy, given that ProPublica reported that many of the 25 richest people went years paying in federal income taxes. Sen. Chuck Grassley expressed disdain for how the leak has been interpreted.
“The fact that these private tax records spilled into the public and were contorted by Democrats and an uninformed press to make a political point is particularly disturbing,” he said in a statement to the Washington Examiner. "Make no mistake: if this sort of breach can happen to one American, it can happen to any American.”
The Biden administration’s plan to raise, the scope of which might encounter from more centrist Democrats, includes raising the top individual income tax rate to 39.6% and taxing capital gains for households making more than $1 million as ordinary income.
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House Republicans demand hearing with Biden administration over billionaire tax leaks .
Republicans are calling for Biden administration officials to testify in Congress about the thousands of the country’s wealthiest people who had their IRS tax records leaked. © Provided by Washington Examiner GOP Rep. James Comer of Kentucky, the ranking member on the House Oversight Committee, led a letter from his Republican colleagues addressed to Chairwoman Carolyn Maloney of New York on Wednesday that called on her to hold a hearing to understand who is responsible for the explosive leaks.