The Tax Prof[essor] Blog is one of a collection of blogs by law professors. I love the way Tax Prof Blog exposes the shamelessness with which the tax code is abused to favor the privileged, and the incompetence of our vast government bureaucracies.
Two recent posts:
IRS Cannot Verify Taxpayer Eligibility for 2/3 of $325 Billion of Stimulus Tax Benefits
The Treasury Inspector General for Tax Administration today released Evaluation of the Internal Revenue Service’s Capability to Ensure Proper Use of Recovery Act Funds (2010-41-011):
The Treasury Inspector General for Tax Administration today publicly released its review of the IRS’s ability to verify taxpayer eligibility for tax benefits and credits provided by the American Recovery and Reinvestment Act of 2009.
The Recovery Act contains 56 tax provisions with a potential cost of more than $325 billion that are intended to provide tax relief for individuals and businesses. These include 20 provisions for individuals that provide tax relief to working or retired Americans and their families. Thirty-six additional provisions provide tax relief and incentives for businesses, including provisions that encourage investment in sources of renewable energy and promote the hiring of unemployed veterans. They also allow for the sale of bonds to provide for construction, financing, environmental and manufacturing improvements.
TIGTA found that the IRS is unable to verify taxpayer eligibility for the majority of Recovery Act tax benefits and credits at the time a tax return is processed.
My thoughts: This is further evidence that government “help,” doesn’t. In pandering for support, our overlords have created an unwieldy bureaucracy that mostly helps only the privilege people who have the time, money and power to navigate it. It also keeps armies of tax lawyers and consultants employed in what Bastiat called rent-seeking, and rent-avoidance. If the gargantuan tax code was thrown into the garbage can, more people would employ their talents in the production of goods and services that society actually wants. Instead, time, talent, capital, creative energy is employed in fighting and manipulating the forceful hand of government.
Over 275,000 Federal Workers Are Tax Deadbeats
Over 276,000 federal workers and retirees owed more than $3 billion in back income taxes in 2008 (up from $2.7 billion owed in 2007).
The cabinet departments with the largest percentages of employee/retiree tax deadbeats are:
1. Housing & Urban Development: 4.05%
2. Veterans Affairs: 3.91%
3. Health & Human Services: 3.86%
4. Army: 3.76%
5. Education: 3.60%
6. Air Force: 3.25%
7. Defense: 3.16%
8. State: 3.14%
9. Navy: 3.01%
10. Commerce: 3.00%
The agencies and commissions with the largest percentages of employee/retiree tax deadbeats are:
1. National Capital Planning Commission: 10.42%
2. Advisory Council on Historic preservation: 9.26%
3. U.S. Office of Special Counsel: 8.65%
4. U.S. Election Assistance Commission: 8.51%
5. Federal Labor Relations Authority: 7.20%
6. U.S. Commission on Civil Rights: 7.14%
7. Federal Mine Safety & Health Review Commission: 6.82%
8. Government Printing Office: 6.29%
9. Federal Retirement Thrift Investment Board: 5.33%
10. Court Services & Offender Supervisors: 5.23%
Other departments and agencies:
* Federal Reserve Board: 4.32%
* U.S. House of Representatives: 4.17%
* U.S. Senate: 3.19%
* SEC: 2.56%
* U.S. Tax Court: 1.43%
* Treasury Department: 0.98% (the lowest delinquency rate among cabinet departments)
My thoughts: I wonder how these rates compare to national average for the 5/6th of us who don’t work for government. There is a class struggle, but it isn’t between laborers and owners of capital, it is between government workers and those of us who produce goods and services that society voluntarily consumes.