Good Column.   Another Federal Agency that is broken beyond repair, the
IRS needs to be decimated, depleted and deleted.


On Wed, May 15, 2013 at 9:09 AM, MJ <[email protected]> wrote:

>  *"As David Burnham noted in "A Law Unto Itself: The IRS and the Abuse of
> Power" (1990), "In almost every administration since the IRS's inception
> the information and power of the tax agency have been mobilized for
> explicitly political purposes.""
>
> *OPINION
> May 14, 2013, 8:18 p.m. ET
> *A Brief History of IRS Political Targeting
> **One survey found that 75% of IRS respondents felt entitled to deceive
> or lie to Congress.
> *By JAMES BOVARD
>
> Many Republicans are enraged over revelations in recent days that the
> Internal Revenue Service targeted conservative nonprofit groups with a
> campaign of audits and harassment. But of all the troubles now dogging the
> Obama administration -- including the Benghazi fiasco and the Justice
> Department's snooping on the Associated Press -- the IRS episode, however
> alarming, is also the least surprising. As David Burnham noted in "A Law
> Unto Itself: The IRS and the Abuse of Power" (1990), "In almost every
> administration since the IRS's inception the information and power of the
> tax agency have been mobilized for explicitly political purposes."
>
> President Franklin Roosevelt used the IRS to harass newspaper publishers
> who were opposed to the New Deal, including William Randolph Hearst and
> Moses Annenberg, publisher of the Philadelphia Inquirer. Roosevelt also
> dropped the IRS hammer on political rivals such as the populist firebrand
> Huey Long and radio agitator Father Coughlin, and prominent Republicans
> such as former Treasury Secretary Andrew Mellon. Perhaps Roosevelt's most
> pernicious tax skulduggery occurred in 1944. He spiked an IRS audit of
> illegal campaign contributions made by a government contractor to
> Congressman Lyndon Johnson, whose career might have been derailed if Texans
> had learned of the scandal.
>
> President John F. Kennedy raised the political exploitation of the IRS to
> an art form. Shortly after capturing the presidency, JFK denounced "the
> discordant voices of extremism" and derided people who distrust their
> leaders­President Obama didn't invent that particular rhetorical line.
> Shortly thereafter, JFK signaled at a news conference that he expected the
> IRS to be vigilant in policing the tax-exempt status of questionable (read:
> conservative) organizations.
>
> Within a few days of Kennedy's remarks, the IRS launched the Ideological
> Organizations Audit Project. It targeted right-leaning groups, including
> the Christian Anti-Communist Crusade, the American Enterprise Institute and
> the Foundation for Economic Education. Kennedy also used the IRS to
> strong-arm companies into complying with "voluntary" price controls. Steel
> executives who defied the administration were singled out for audits.
>
> A 1976 report by the Senate Select Committee on Government Intelligence on
> the Kennedy program noted: "By directing tax audits at individuals and
> groups solely because of their political beliefs, the Ideological
> Organizations Audit Project established a precedent for a far more
> elaborate program of targeting 'dissidents.'"
>
> After Richard Nixon took office, his administration quickly created a
> Special Services Staff to mastermind what a memo called "all IRS activities
> involving ideological, militant, subversive, radical, and similar type
> organizations." More than 10,000 individuals and groups were targeted
> because of their political activism or slant between 1969 and 1973,
> including Nobel Laureate Linus Pauling (a left-wing critic of the Vietnam
> War) and the far-right John Birch Society.
>
> The IRS was also given Nixon's enemies list to, in the words of White
> House counsel John Dean, "use the available federal machinery to screw our
> political enemies."
>
> The exposure of Nixon's IRS abuses during congressional hearings in 1973
> and 1974 profoundly weakened him during the uproar after the Watergate
> hotel break-in. The second article of his 1974 impeachment charged him with
> endeavoring to obtain from the IRS "confidential information contained in
> income tax returns for purposes not authorized by law, and to cause, in
> violation of the constitutional rights of citizens, income tax audits or
> other income tax investigations to be initiated or conducted in a
> discriminatory manner." Congress enacted legislation to severely restrict
> political contacts between the White House and the IRS.
>
> In the following decades, the IRS regularly sparked outrage by abusing
> innocent taxpayers, but there was not much controversy about the agency's
> politicizing until Bill Clinton took office.
>
> In 1995, the White House and the Democratic National Committee produced a
> 331-page report entitled "Communication Stream of Conspiracy Commerce" that
> attacked magazines, think tanks and other entities and individuals who had
> criticized President Clinton. In the subsequent years, many organizations
> mentioned in the White House report were hit by IRS audits. More than 20
> conservative organizations­including the Heritage Foundation and the
> American Spectator magazine­and almost a dozen individual high-profile
> Clinton accusers, such as Paula Jones and Gennifer Flowers, were audited.
>
> The Landmark Legal Foundation sued the IRS in 1997 after being audited.
> Its brief quoted an IRS official who had explained at an IRS meeting in San
> Francisco that audit requests from members of Congress or their staff had
> been shredded and also suggested how future requests from Capitol Hill
> could be camouflaged. The IRS told the court that it could not find 114 key
> files relating to possible political manipulation of audits of tax-exempt
> organizations.
>
> One potential bombshell of the Clinton era that went relatively
> unrecognized was an Associated Press report in 1999 that "officials in the
> Democratic White House and members of both parties in Congress have
> prompted hundreds of audits of political opponents in the 1990s," including
> "personal demands for audits from members of Congress." Audit requests from
> congressmen were marked "expedite" or "hot politically" and IRS officials
> were obliged to respond within 15 days. Permitting congressmen to secretly
> and effortlessly sic G-men on whomever they pleased epitomized official
> Washington's contempt for average Americans and fair play. But because the
> abuse was bipartisan, there was little enthusiasm on Capitol Hill for an
> investigation.
>
> The IRS has usually done an excellent job of stifling investigations of
> its practices. A 1991 survey of 800 IRS executives and managers by the
> nonprofit Josephson Institute of Ethics revealed that three out of four
> respondents felt entitled to deceive or lie when testifying before a
> congressional committee.
>
> The agency also has a long history of seeking to intimidate congressional
> critics: In 1925, Internal Revenue Commissioner David Blair personally
> delivered a demand for $10 million in back taxes to Michigan's Republican
> Sen. James Couzens­who had launched an investigation of the Bureau of
> Internal Revenue­as he stepped out of the Senate chamber. More recently,
> after Sen. Joe Montoya of New Mexico announced plans in 1972 to hold
> hearings on IRS abuses, the agency added his name to a list of tax
> protesters who were capable of violence against IRS agents.
>
> With the current IRS scandal, we may have seen only the tip of the
> iceberg. Thorough congressional investigations would no doubt help reveal
> the extent of the operation, and the criminal investigation announced by
> the Justice Department on Tuesday may prove fruitful as well. Regardless of
> what these inquiries uncover, though, we can be almost certain that IRS
> audits will remain irresistible political weapons.
>
>
> *Mr. Bovard is the author, most recently, of the e-book memoir "Public
> Policy Hooligan."
>
> *A version of this article appeared May 15, 2013, on page A15 in the U.S.
> edition of The Wall Street Journal, with the headline: A Brief History of
> IRS Political Targeting.
>
>
>  http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-232185/
>
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