Deliberately Destroying America – Obama’s ‘Mission Accomplished’?

By Alan Caruba

It has taken three and a half years into Barack Obama’s presidency for most Americans to realize that he has been deliberately destroying America by driving up the nation’s debt and deficit, reducing privately held wealth, forcing millions onto the public dole, undermining its moral structure, and weakening the nation’s reputation internationally..

His latest lie is that “the private sector is doing just fine”, but the numbers tell the whole story and one can find them on an excellent blog, Economic Collapse, that offers seventy examples:

— The official U.S. unemployment rate has been above eight percent (8%) for 40 months in a row. Unofficially, it is estimated to be closer to fifteen percent (15%).

— In 2007, about ten percent (10%) of all unemployed Americans had been out of work for 52 weeks or longer. Today that number is above thirty percent (30%).

— An astounding forty-nine percent (49%) of all Americans live in a home where at least one member is receiving government benefits.

— The middle class is shrinking. Ninety-five percent (95%) of the jobs lost during the current recession were middle class jobs.

— Instead of cutting spending to reduce debt, the Federal Reserve is “monetizing” much of the U.S. debt. It purchased “approximately sixty-one percent (61%) of all government debt issued by the U.S. Treasury in 2011.

— Perhaps the most frightening statistic cited was a survey that found that sixty-three percent (63%) of Americans “believe that the U.S. economic model is broken.”

It is not broken. The economic model that propelled America into a superpower would continue to provide prosperity if the nation’s “entitlement” programs were reformed, if the obscene government spending and production of regulations were reduced, if government housing finance entitles such as Fannie Mae and Freddie Mac were eliminated, if the federal government’s purchase of the nation’s land mass was ended, if environmental laws without any basis in science were struck from the books, and if government control over the exploration and extracting of its vast energy reserves was greatly reduced.

It’s a tall order and it would require cleaning out a Congress that has imposed unsustainable burdens, including the highest corporate income tax in the world, and a level of taxation that requires those still holding jobs to annually work 107 days to earn enough money to pay local, state, and federal taxes.

If you check out the Progressive Caucus website, you will find nearly seventy members of the House are members and there is one from the Senate, the Socialist Bernie Sanders. In the 1950s they would have correctly been identified as Communists.

When Liberals and liberalism became unpopular, they began using the term Progressives. They are the descendents of every Democrat that voted for the New Deal, the War on Poverty, the creation of Fannie Mae and Freddie Mac, and the creation of the Departments of Energy, Education, and the Environmental Protection Agency. These are the people who in the early years of the last century imposed the income tax and engineered the creation of the Federal Reserve, a banking cartel that controls the economy.

At this point most conservatives have heard of Saul Alinksy’s 1972 book, “Rules for Radicals”, a guide to bringing about the destruction of the nation’s capitalist economic system and replace it with the kind of government that Barack Obama has tried to impose with the help of the many Communists and liberals in Congress.

Lesser known is the roadmap spelled out in 1988 by Columbia University sociologists, Richard Andrew Cloward and his wife Frances Fox Piven, both members of the Democratic Socialists of America.

The “Cloward-Piven Strategy” advocated a “massive drive to recruit the poor onto the welfare rolls” in order to sabotage it and bring about “a political and financial crisis.” As it turned out, it was the collapse of the housing market that brought about the financial crisis they wanted, but following the Bush administration emergency bail-out of the banking system, the Obama administration with its Democrat-controlled Congress set about imposing historic debt through its $821 billion “stimulus.” Present debt exceeds the entire annual Gross Domestic Product.

It followed that with an unnecessary and wasteful bail-out of General Motors and Chrysler (instead of permitting a normal bankruptcy that would diminish the power of the unions that brought it about), and massive “investments” in failed solar and other alternative energy companies. The EPA was set free to try to impose regulations that would shut down a major portion of the nation’s producers of electricity.

Even though voters returned majority power to Republicans in the House of Representatives in 2010 the trail of destruction has continued and the bills they have passed to end our present financial troubles have been locked up in a Democrat-controlled Senate that has not passed a budget in the last three years.

We are now five months from an election to remove Obama from power and electing conservative lawmakers to office. It’s a start in restoring America to its former prosperity.

For more click here.

NBC: Obama IRS refunds ‘Illegals’ $4.2 billion for kids–in Mexico (Yes, Even NBC, National Barack Channel, is concerned!)

A follow-up on my previous post Illegal Immigrants Receive 4 BILLION Dollars Per Year in Taxpayer Money!!!

By  via The Examiner

Tax

This bombshell dropped on Monday in Washington, D.C., causing outrage throughout the halls of Congress, and now beyond, to the “genuine” taxpayers who have been robbed all across America.

Investigative television reporter Bob Segall of Indianapolis NBC affiliate WTHR TV Channel 13, was contacted by a long-time central Indiana tax preparer, who blew the whistle on a multi-billion dollar tax fraud about which the IRS has done nothing, according to the TV news show video segment that aired on Monday.

“There is not a doubt in my mind there’s huge fraud taking place here,” he said, slowly flipping through the pages of a [heavily redacted] tax return.

“We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it,” he said.

The scheme involves illegal immigrants that are filing tax returns, claiming child credits for multiple dependents under their support in “their” U.S. household, and collecting enormous cash refunds–such as one persons tax return that showed income of over $14,000, who collected a cash refund of over $10,300.

In 1996 during the Clinton Administration, the Individual Tax Identification Number (ITIN) was created in order for both resident and non-resident aliens, regardless of immigration status, to fulfill their tax filing and payment obligations under IRS regulations–even though an ITIN does not confer the right to work and receive income in the United States.

This year tax preparation offices across the country were flooded by an estimated 2 million illegal immigrants, who in growing numbers have been taking advantage of a tax loophole called the Additional Child Tax Credit–a fully-refundable credit of up to $1000 per child–meant to ease the income tax burden on working families who have children living at home.

However, Segall’s investigation and reporting found many illegal immigrants who were claiming these tax credits, but for kids who live in Mexico–even listing nieces and nephews.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

After Segall reviewed many of the heavily redacted tax returns, it was still clear that the tax filers had received large tax refunds after claiming child tax credits for many dependents.

“Here’s a return right here: we’ve got a $10,3000 refund for nine nieces and nephews,” he said, pointing to the words “niece” and “nephew” listed on the tax forms nine separate times.

“We’re getting an $11,000 refund on this tax return. There’s seven nieces and nephews,” he said, pointing to another set of documents. “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

Under agreement not to reveal their identity or filming them face on, Segall of WTHR was able to speak with several of the illegal immigrants who, using Segall’s translator–confirmed it is easy.

One of the workers, who was interviewed at his [appeared to be a 2 bedroom mobile home] in southern Indiana, admitted that four other illegal immigrants used his address to file tax returns–even though they don’t even live there.

These four workers claimed that not only they, but a total of 20 children between them–about 30 people–lived in the residence.

As a result, the IRS sent the illegal immigrants tax refunds totaling $29,608.

Upon Segall questioning the man regarding that incredible residency claim, he replied … “They don’t live here … the other kids are in their country of origin, which is Mexico,” later saying that none of the 20 children have ever visited the United States–let alone lived here.

Segall then asked why ‘undocumented workers’ should receive tax credits for children living in a foreign country, which is a violation of IRS tax rules?

“If the opportunity is there and they can give it to me, why not take advantage of it?”

Segall then met with Russell George, the U.S. Treasury Department’s Inspector General for Tax Administration, who stated … “The magnitude of the problem has grown exponentially,” but that the IRS has known about the problem for years.

Mr. George said his department has repeatedly warned the IRS that additional child tax credits are being abused by undocumented workers–in 2009 alone, their annual audit report showed that ITIN tax filers received about $1 billion in additional child tax credits.

The same audit report from 2010 showed it cost the American tax payers more than $4.2 billion.

“Keep in mind, we’re talking $4 billion per year.” George continued by saying “It’s very troubling” that the IRS has not taken any action on the matter–despite these multiple warnings from their own inspector general.

“Millions of people are seeking this tax credit who, we believe, are not entitled to it,” said the inspector general. “We have made recommendations to [IRS] as to how they could address this, and they have [still] not taken sufficient action in our view to solve the problem.”

Segall’s investigation revealed that claims for additional child tax credits by ITIN filers have skyrocketed during the past decade–from $161 million in 2001 to $4.2 billion in tax year 2010.

He also found that illegal immigrants filed 3.02 million tax returns in 2010, with 72% of those returns (2.18 million) claiming the additional child tax credit.

Segall’s attempts to speak with any of the 100,000 employees of the IRS were rebuffed; instead they emailed this statement…

“The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used.  Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written,” the statement said.

George disagrees with that position and believes the IRS should be doing more to prevent undocumented workers from getting billions in US tax dollars.

“The IRS is not doing something as simple as requesting sufficient documentation from people seeking this credit,” he said. “Once the money goes out the door, it’s nearly impossible for the IRS to get it back.”

Segall says that the IRS says it can’t change the system unless it gets permission from Congress; and closing this loophole requires lawmakers to pass a new law specifically excluding illegal immigrants from claiming additional child tax credits.

However, the IRS “Ten Facts About Child Tax Credit,” does not concur, as illegal immigrants, by definition, fail the citizenship qualification test.

Let’s remember, this is an election year, Barack Obama is CEO, Harry Reid can block any legislation in the Senate, and Treasury Secretary Tim Geithner, who is George Russell’s boss, is still claiming that Obamacare will reduce healthcare costs.

Tomorrow in my follow on article, learn how Congressmen are reacting to this incredible tax fraud–and what they intend to do about it.

For more click here.

Obama’s Team – One Common Denominator

By Marcia Wood via Tea Party Nation

It’s time to find out who is behind Obama; we all know that one man could not single handedly steal 787 billion dollars from us and redistribute it without the assistance and direction of others. Nor could one man increase our National Deficit 5 trillion in 3 years without the help of many, many others.

We know that one man couldn’t stop businesses in their tracks without assistance from the inside. We know that one man couldn’t choreograph the Fast and Furious gun operation, a covert operation that has caused the murder of many innocent human beings.

We know that a man running for his second Presidency term would not turn on the Churches, the military, the tea parties, the States – no one in their right mind would behave in this manner unless there were ulterior motives and he was being controlled, not in control.

Looking back over the past three plus years, it is strange that neither Republicans nor the Democrats monitored our money, nor were any one of them good stewards of the money that we loaned the Government.

From 2008 thru 2011 we watched the Liberal News, the Republicans and the Democrats carefully prepare for the next saga of American under siege. Daily they dressed in their costumes wearing many hats and presented to us a play by play blow as America was being devoured from the inside out.

They distracted us and divided us pitting the poor against the wealthy, races against races throwing in the race card, the Church card, the blame card just for sound and effect.

Obama is the puppet, a creation, a product of many evil puppeteers; he can’t move or breathe without explicit direction and marching orders.

Some call him a Muslim, others an African American, some say he’s a Heinz mixture and none of that really matters now as we head into the 2012 Presidential Election, because he’s never been vetted and no one knows who he really is, where he came from or what he has been doing for the past 50 years.

But, the most important question is this – who is behind the puppet and who pulls the puppet’s strings?

Americans will not find out these answers in the yellow pages, or at Occidental or Columbia colleges. In order to win the fight in “Taking Our Country Back,” we must first know who the enemy is…

The first thing to check out is the people who are in charge of our Federal reserve (Ben Bernanke,) the person in charge of our Treasury (Timothy Geithner,) the Chief Financial Adviser (Larry Summers,) the Chief Political Adviser (David Axelrod,) the Office of Management and Budget (Peter Orszag,) the White House Chief of Staff (Jacob Lew,) Hillary Clinton and the majority of Obama’s Czars; they all have one thing in common.

There is one common denominator that will explain why we hear of a New World Order and a new global regulatory system that would rule the World and why the FEDS remain behind closed doors.

First clue is George Soros and second would be Warren Buffet, the Old Republican Establishment, the Liberal News Media and Democrats can fill in the missing pieces if you but ask them or maybe they’ll turn tail and run.

AMERICA WE ARE CONTROLLED – NOT IN CONTROL

Emboldened GOP wants to abolish state income taxes – Is your state one of them?

By SEAN MURPHY, Associated Press via CNS News

Map of USA highlighting states with no income ...

Map of USA highlighting current states with no income tax (red and gray)

OKLAHOMA CITY (AP) — A year after Republicans swept into office across the country, many have trained their sights on what has long been a fiscal conservative’s dream: the steep reduction or even outright elimination of state income taxes.

The idea has circulated among academics and think-tank researchers for years. But it’s moving quietly into mainstream political discourse, despite the fact that such sweeping changes would almost certainly mean a total rewiring of tax systems at a time when most states are still struggling in the aftermath of the recession.

“I think there’s going to be more action that way,” especially as Republican governors release their budget plans, said Kim Rueben, an expert on state taxation at the Brookings Urban Tax Policy Center.

Last year, GOP lawmakers in many states quickly went to work on a new conservative agenda: restricting abortion, cracking down on illegal immigration, expanding gun rights and taking aim at public-employee unions.

Emboldened by that success, the party has launched income tax efforts in Idaho, Kansas, Maine, Missouri, Ohio, Oklahoma and South Carolina. But it’s not clear how all those states would make up for the lost revenue, and Rueben said she’s not aware of any state in modern history that has eliminated an income tax.

Nine states already get by without an income tax, mostly by tapping other sources of revenue. Nevada and Florida rely on sales taxes that target the tourism industry. Alaska has taxes on natural resources, and Texas imposes substantial property taxes. The other five states are: New Hampshire, South Dakota, Tennessee, Washington and Wyoming.

But in the rest of the country, income taxes pay for bedrock government services, including roads and bridges and schools and prison systems.

In Oklahoma, Republican Gov. Mary Fallin says gradually cutting the top income-tax rate of 5.25 percent will make the state more attractive to businesses, help spur economic growth and ensure Oklahoma is competitive against neighboring states such as Texas. Although the personal income tax does not apply to corporate earnings, supporters say company executives and employees will prefer to live in a state that doesn’t tax personal income.

South Carolina Gov. Nikki Haley is pushing this year to consolidate four personal income tax brackets and to phase out corporate income taxes. She promises to seek more tax cuts in the future.

Missouri has a bill to reduce income taxes and offset the lost revenue by raising the cigarette tax.

And Maine’s GOP-controlled Legislature voted last year to lower the income tax from 8.5 to 7.95 percent, taking 70,000 low-income citizens off the income-tax rolls.

Idaho Gov. C.L. “Butch” Otter has suggested reducing the individual income tax rate from 7.8 percent to 7.6 percent, the same as the corporate income tax rate, and then gradually lowering both to 7 percent. But business groups have said they would rather get help eliminating the personal property tax businesses pay on their equipment.

In Ohio, Gov. John Kasich‘s 2010 campaign included a pledge to phase out the state’s personal income tax, though without a timetable for doing so. Thus far, the state’s fiscal situation has stymied the governor’s efforts to achieve his goal, other than implementing a previously scheduled income tax cut.

As one way to compensate for the lost revenue, the Oklahoma governor and others have suggested eliminating other kinds of tax breaks and incentives, specifically transferrable tax credits offered to certain businesses. But that would still fall woefully short in Oklahoma, where the income tax provides more than one-third of all state spending.

Still, 23 Republicans in the Oklahoma House have signed up as sponsors of a measure to abolish the income tax over the next decade without raising any other taxes.

“Our goal is to transform Oklahoma into the best place to do business, the best place to live, find a quality job, raise a family and retire in all of the United States. Not just better than average, but the very best,” state Rep. Leslie Osborn said.

Lower taxes appeal to many voters, but some wonder how the state could get by if lawmakers abandon a major source of money.

“I personally would favor paying less taxes, but to me, it’s like where are we going to make up the difference?” said Steve Schlegel, a bicycle shop owner in Oklahoma City. “I already feel like government is underfunded at the moment.”

Roger Garner, a letter courier, said he would accept higher property taxes if it meant eliminating the income tax.

“Get rid of it,” Garner said. “Florida doesn’t have it. Texas doesn’t have it. We don’t need it. If something is needed, we can figure out a way to pay for it at the local level.”

Conservatives say the lost revenue will be made up by increased economic activity — more businesses paying corporate taxes and more employees paying property taxes and spending money. But economists warn those predictions are unrealistic.

Without creating an alternative funding system, “it’s clearly irresponsible to propose taking action against the income tax,” said Alan Viard, an economist with the American Enterprise Institute, a Washington, D.C.-based conservative think tank.

Former Oklahoma Treasurer Scott Meacham, a Democrat who helped negotiate a series of small income tax cuts, urged state leaders to be careful tinkering with the state’s economy, which is currently enjoying double-digit revenue growth and has one of the 10 lowest unemployment rates in the country.

“If you look at our state’s economy, it’s doing very well versus virtually any other state, whether they have a state income tax or not,” said Meacham, who is now a member of the board of directors for the State Chamber, an association of Oklahoma business and industry.

Voters, he added, “ought to be very concerned, especially in an election year, when the politicians are telling them they know what’s best for them from an economic standpoint.”

In neighboring Kansas, Republican Gov. Sam Brownback has a sweeping plan to overhaul income taxes that calls for offsetting income tax cuts by canceling a scheduled drop in the sales tax. But it would increase the tax burden for the state’s poorest households. And he faces resistance from within his own party over concern that the sales tax increase was supposed to be a temporary fix back in 2010.

A similar debate is unfolding in Oklahoma, where the plan calls for reducing the income tax from 5.25 percent to 4.75 percent by eliminating the personal exemption for every household member, including children, as well as the child tax credit and earned income tax credit.

An analysis by the Oklahoma Policy Institute shows those steps would raise taxes for 55 percent of Oklahomans, mostly low-income families and those with children.

“We have grave doubts about this proposal,” said David Blatt, director of the institute. “We see stumbling blocks in every direction. You either decimate state services or shift the burden onto those that can least afford it.”

___

Associated Press writers John Hanna in Topeka, Kan.; Seanna Adcox in Columbia, S.C.; David Lieb in Jefferson City, Mo.; and Glenn Adams in Augusta, Maine; Julie Carr Smyth in Columbus, Ohio; and John Miller in Boise, Idaho, contributed to this report.

 

 

The gun industry is fighting for your rights! Are you?

By Jeff Waller, Tupelo Tea Party Examiner

 

BATFE

Washington (Reuters) is reporting that a U.S. judge’s  decision to uphold the recent regulation changes mandated by the BATFE requiring  gun dealers in four states bordering Mexico to report the sales of multiple  semi-automatic rifles has been appealed by the gun industry.  The report  says that Judge Rosemary Collyer of the U.S. District Court for the District of  Columbia ruled that the reporting requirements ordered last year were  sufficiently narrowly tailored.  Collyer writes the reporting demand “was  limited to only certain sales of certain guns in certain states, ATF did not  exceed its authority.”

Gun dealers, the National Rifle Association (NRA), and the National Shooting  Sports Foundation(NSSF) challenged the requirements.  They argue that they  would effectively require national registration of firearms sales, which they  said the BATFE was not authorized to do.  The reporting requirements are  that dealers must report within five business days a sale of two or more  semiautomatic rifles to the same person. That includes rifles with a caliber  greater than .22 that are able to accept a detachable magazine.

The rules, which supposedly apply to only Texas, Arizona, New Mexico and  California are capricious at best.  Because the ruling extends across  state lines, the lawsuit is correct in its assertion that the requirement is  national in scope.  But even if it was not, BATFE is not a governing  body.  It cannot create law.  If this applied to one state only, the  requirement would be wrongheaded because BATFE cannot create what amounts  to state law.

The appeal was filed on Monday with the district court and will go to the  U.S. Court of Appeals for the District of Columbia Circuit.  The BATFE  issued the requirements in a “stepped-up effort to clamp down on the weapons  flowing across the border to drug cartels in Mexico,” and they affect more than  8,000 gun dealers in Texas, Arizona, New Mexico and California.

BATFE’s demands come on the heels of the now-infamous Fast and Furious  program which allowed 2,000 or more high-powered, and assault weapons to be  illegally transferred across the border into Mexico.  Several of these  weapons have already turned up as the murder weapon in several cases.

BATFE is engaged in a form of self-regulation, or self-governance that  involves an unauthorized interpretation of the Constitution.  BATFE does  not have this priviledge.  Only the Congress may enact law.  The  changes amount to legislation which infringes on Americans’ rights to keep and  bear arms.  There is no law against a qualified American citizen’s purchase  of any number of the targeted rifles.  There is no restriction in this  regard.  The new rules amount to an assault on the US Constitution in two  ways.

First, and most obvious, is the impingement on the Second Amendment by  creating an undue burden on the citizen, forcing the citizen to relinquish part  of his freedom in order to facilitate an easing of the burden of the BATFE to  control illegal weapons traffic.  It is not incumbent on the citizen to aid  the BATFE.  Also, the BATFE does not have the authority to arbitrarily  change its own regulations.  Regulation is the jurisdiction of the  Congress.

Second, the forced reporting amounts to an unreasonable search and seizure to  the records and business on the gun dealer and the privacy of the citizen.   The citizen has the right to expect that his or her privacy is respected in a  legal hunting rifle purchase.  BATFE is getting into a realm where it does  not belong.

According to The Washington Post, “A federal judge has thrown out a  lawsuit challenging new reporting requirements for gun dealers that the Obama  administration says are needed to help staunch the flow of powerful rifles to  violent Mexican drug gangs.”

Read that again!  The Obama administration says these changes are “needed to help staunch the flow of powerful rifles to violent Mexican drug  gangs.”  The administration admits to no wrong-doing in the Fast and  Furious program which did exactly that.  Remember, this operation was  supposedly designed to track the weapons to the buyer, but it never did.   None of the over two thousand guns were tracked.  Eric Holder has been  implicated in the planning, execution, and now an apparent cover-up of the  fiasco.  Yet they expect Americans to accept this attack on their  freedoms.

What is next?  Will the Obama administration issue a mass mailing of  pornography to all of the homes in the US, and then tell us that we need to  allow them to open our mail for us?  The logic is the same.  Create a  crisis by either ineptitude or maliciousness, then demand the freedom to be  surrendered in order to combat the crisis.

“While we understand ATF’s motivation is to try to curtail violence in  Mexico, Congress simply has not granted ATF regulatory carte blanche,” the NSSF  said.  This writer is confident that the ruling by Judge Collyer will be  overturned on appeal.

Obama Administration Supports Rogue IRS Regulation in Order to Please Europeans

By Daniel J. Mitchell

I’ve written several times about a proposed IRS regulation that would force American banks to put foreign law above U.S. law. I’ve repeatedly warned that the scheme, which would force financial institutions to report the deposit interest they pay to foreigners, is bad economic policy, bad regulatory policy, and bad banking policy.

My arguments have included:

But these points don’t seem to matter to the Obama Administration, which is ideologically committed to the anti-tax competition agenda of Europe’s welfare states. This is why the White House supports all sorts of destructive policies, including not only this misguided regulation, but also the creation of something akin to a world tax organization that will have power to block free-market tax policy.

A new article in the Weekly Standard explains what’s at stake.

Early last year the Treasury Department published its “Guidance on Reporting Interest Paid to Nonresident Aliens,” which would require banks to report to the Internal Revenue Service the interest paid to foreign depositors with a U.S. bank account. While the Treasury and the regulatory apparatus insist that the cost and inconvenience of adhering to this regulation is next to nothing, the rule may cost the U.S. banking system hundreds of billions of dollars in lost deposits, in turn costing our economy billions of dollars, while providing no discernible benefit to banks, depositors, taxpayers, or the U.S. economy. …a much bigger problem—for banks and the economy—than the compliance costs is the threat of a massive capital flight. The United States is a very popular place for foreigners to park their savings, for a variety of reasons. For starters, we offer a stable government that can be trusted to keep its hands off deposits—something that appeals greatly to residents of Venezuela, Argentina, Ecuador, and any number of other unstable countries. …As a result, a staggeringly large amount of savings from abroad is currently held in U.S banks. While the Treasury asserts that “deposits held by nonresident alien individuals are a very small percentage of the [total] deposits held by U.S. financial institutions,” that very small percentage amounts to more than $3.7 trillion, according to a 2011 Bureau of Economic Analysis report, hardly a pittance. The massive amount of foreign savings here is a boon to the U.S. economy. Banks lend against these deposits, mainly to companies here in the United States. Jay Cochran, an economist at George Mason University, studied the impact that the more limited 2002 reporting requirements would have had on the banking system, estimating that it would have resulted in nearly $100 billion in deposits leaving the U.S. banking system. A reporting regulation that covers all foreign accounts would likely result in two to three times more capital flight. The impact would be harmful not just for the banks but for the broader economy. The decline in profits in the banking sector alone from a roughly quarter-trillion-dollar capital flight would be in the range of $5-10 billion—which makes a mockery of the notion that the costs of the regulation are under $100,000.

For more information about this wretched proposal, here’s a video I narrated on the topic.

To put it bluntly, the Obama Administration is pushing this regulation because it thinks the anti-tax competition agenda of Europe’s welfare states is so important that it is willing to risk the health of the American economy, undermine the soundness of U.S. financial institutions, disregard the rule of law, and abuse the regulatory process.

Indeed, this proposal is even worse than the increasingly infamous Foreign Account Tax Compliance Act.

And that’s saying something, because with each passing day, it is more and more obvious that FATCA is a destructive law that will significantly harm the American economy. But at least it’s a law, one that was approved by Congress and signed by the President. And the costly FATCA regulations being developed by the IRS are for the purpose of enforcing the law.

The interest-reporting IRS regulation is also costly and destructive, to be sure, but what makes it so perverse is that it is – at best – completely gratuitous. It is being advanced solely for reasons of ideology, regardless of the law and consequences be damned.

Geithner Raids Federal Pension Funds – Déjà Vu from Last May (And LBJ’s Theft of Social Security Funds)

By David DeGerolamo

Geithner Raids Federal Pension Funds – Déjà Vu from Last May

Tim Geithner once again is raiding the federal pension funds since the debt ceiling has been breached. Don’t worry about federal retirees not getting their pension check: the government is required to pay them whether money is in the pension fund or not. In other words, the federal pension fund is just another slush fund and its assets are available to be spent as necessary without any penalties. If an “evil corporation” did this, their officers would be put in prison after a well publicized trial.

Remember last may when Geithner blackmailed Congress using this same trick?

US raids civil service pension fund as it hits $14.3 trillion debt …

The US has suspended payments into a civil service pension fund to free up almost $150bn as the major debtor nation approaches its legal borrowing limit.

Timothy Geithner, the US Treasury Secretary, announced the move in a letter on Monday to Congressional leaders as he explained that the move extends the government’s breathing space to August 2 to avoid an unprecedented default on its borrowings.

How did that work out for us? After eight months and another $1 trillion later, we are once again going down the same path. Remember the spending cuts Boehner wanted in order to agree to the August debt ceiling increase? John Boehner is more concerned about election results than doing his job and the people continue to pay the price for his incompetence.

Treasury dips into pension funds to avoid debt limit – Reuters

The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.

Treasury started suspending reinvestments in a federal pension fund known as the G-Fund in order to avoid hitting the country’s $15.194 trillion debt limit.

“I will be unable to invest fully” the federal employees retirement system fund, beginning Tuesday, Treasury Secretary Timothy Geithner told Democratic and Republican leaders in Congress.

The House of Representatives is expected to vote Wednesday on the Obama administration’s request to increase the debt limit by $1.2 trillion.