Tag: tax evasion
Welcome To The Dead On Arrival Congress, Where Rhetoric Is All That Matters

Welcome To The Dead On Arrival Congress, Where Rhetoric Is All That Matters

I’m going to be reporting on everything these Republican goofs do for the next two years. To help me cover their lying, scheming asses, you can buy a subscription right here.

The Republican-controlled House of Representatives has successfully navigated its way into its performative normative future by winning its first two votes. They passed the Kevin McCarthy Defenestration Act, otherwise known as the House rules, and they passed “The Family and Small Business Protection Act," otherwise known as the We Hate Taxes Act.

Big whoop. The new House rules allow Kevin to wield his gavel unless and until five of the Freedom Caucus decide to take that freedom away from him by invoking their new powers to vacate the chair – aka, fire the Speaker – on a motion that can now be made by a single member. Our boy Kev isn’t merely walking on eggshells, he’s dog-paddling through raging rapids trying to keep himself from going down the 100-foot falls that he can see lying straight ahead.

Then they made good on their promise to cut the money for the 80,000 or so new IRS employees scheduled to be hired over the next decade, funding for which was built into the Inflation Reduction Act, signed into law by President Joe Biden late last year. Republicans brought back the so-called “Holman rule,” a provision dating to the 19th Century which allows the House to amend spending bills at will, cutting out stuff they don’t like (new money for the IRS), also allowing them to terminate federal employee positions they oppose, such as the 80,000 or so new IRS employees funded by the passage of last year’s spending bill.

That little legislative jewel is dead on arrival in the Democrat-controlled Senate, not to mention if it were ever to reach the president’s desk.

But who cares! They’re out there in the halls of Congress this morning giving interviews before any microphone they can find bragging about firing the 87,000 new IRS “agents” they claim will be hired over the next decade. A bald-faced lie, naturally: The Treasury Department has said that the money in the Inflation Reduction Act will be used mainly to hire customer service representatives, computer scientists, and to replace the 52,000 IRS employees who are scheduled to retire over the next six or seven years.

Only a small percentage of the new employees will be serving as IRS agents, but you won’t be hearing that from Marjorie Taylor Greene or any of her MAGA compatriots. They’re out there claiming they’re saving middle class Americans from being audited, when the truth is, none of the money appropriated for the IRS will be spent on enforcement of IRS rules on families making less than $400,000 a year. According to The Hill, IRS Commissioner Charles Rettig, an appointee of Donald Trump, sent a letter to the Senate last August stating “that the funds from the legislation would be used to up examination of large corporations and high-net-worth individuals.”

But try finding that bothersome little detail escaping the lips of a Republican member of Congress.

The White House announced that President Biden woul veto the bill passed yesterday by the House if it somehow accidentally ends up on his desk: “With their first economic legislation of the new Congress, House Republicans are making clear that their top economic priority is to allow the rich and multi-billion dollar corporations to skip out on their taxes, while making life harder for ordinary, middle-class families that pay the taxes they owe.”

Meanwhile, the nonpartisan Congressional Budget Office, which analyzes any spending legislation with respect to its possible effect on the deficit, announced yesterday that, if it were to become law, the Republican bill would lead to increases in the deficit over the next decade of $114 billion by reducing tax revenue by an estimated $186 billion.

So, every time a Republican member of the House opens his or her mouth and starts yapping about the deficit, a reporter on Capitol Hill should ask them about the more than $100 billion they just advocated adding to the deficit.

If I were a Capitol Hill reporter, I wouldn’t hold my breath waiting for an answer, however. With a Democratic Senate and a Democrat in the Oval Office, exactly nothing the House passes on a party-line vote over the next two years will become law. Everything the Republican House says and does will be performative, from Jim Jordan’s Judiciary subcommittee that is supposed to investigate “the weaponization of the federal government” to any sort of tax cuts they might be contemplating. The 118th Congress won’t be about legislating and laws but rather about rhetoric, pure and simple.

Lucian K. Truscott IV, a graduate of West Point, has had a 50-year career as a journalist, novelist, and screenwriter. He has covered Watergate, the Stonewall riots, and wars in Lebanon, Iraq, and Afghanistan. He is also the author of five bestselling novels. You can subscribe to his daily columns at luciantruscott.substack.com and follow him on Twitter @LucianKTruscott and on Facebook at Lucian K. Truscott IV.

Please consider subscribing to Lucian Truscott Newsletter, from which this is reprinted with permission.

Judge Rejects Trump Bid To Withhold His Tax Returns From Congress

Judge Rejects Trump Bid To Withhold His Tax Returns From Congress

By Eric Beech

WASHINGTON (Reuters) -A Federal judge on Tuesday dismissed a bid by former President Donald Trump to keep his tax returns from a House of Representatives committee, ruling that Congress' legislative interest outweighed any deference Trump should receive as a former president.

U.S. District Judge Trevor McFadden said in his ruling that Trump was "wrong on the law" in seeking to block the House Ways and Means Committee from obtaining his tax returns.

McFadden, who also said it was within the power of the committee's chairman to publish the returns if he saw fit, put his ruling on hold for 14 days, allowing time for an appeal.

Trump was the first president in 40 years not to release his tax returns as he aimed to keep secret the details of his wealth and the activities of his family company, the Trump Organization.

The committee sued in 2019 to force disclosure of the tax returns, and the dispute lingers nearly 11 months after Trump left office.

Trump lawyer Patrick Strawbridge told McFadden last month the committee had no legitimate reason to see the tax returns and had asked for them in the hope of uncovering information that could hurt Trump politically.

House Democrats have said they need Trump's tax returns to see if the Internal Revenue Service is properly auditing presidential returns in general and to assess whether new legislation is needed.

McFadden, a Trump appointee, said the committee would be able to accomplish its stated objective without publishing the returns.

He cautioned the panel's Democratic chairman, Representative Richard Neal, that while he has the right to do so, "anyone can see that publishing confidential tax information of a political rival is the type of move that will return to plague the inventor."

Neither the committee nor Strawbridge immediately responded to requests for comments on the ruling.

(Reporting by Eric Beech; Editing by Tim Ahmann and Peter Cooney)

Trump Tower in New York City, headquarters of the Trump Organization.

Criminal Probe Of Trump Org CFO Has Been Ongoing For Months

Reprinted with permission from Alternet

Allen Weisselberg, trusted chief financial officer for the Trump Organization, is reportedly at the center of a criminal investigation launched by the office of New York Attorney General Letitia James.

Details about the ongoing investigation were initially reported by CNN. The New York Timesalso released a similar report that confirmed details about the investigation. Back in January, James' office reportedly sent a letter to the Trump Organization to notify it of the criminal investigation into Weisselberg.

Individuals with knowledge of the investigation have noted that James' office seeks to determine "whether taxes were paid on fringe benefits that Mr. Trump gave him, including cars and tens of thousands of dollars in private school tuition for at least one of Mr. Weisselberg's grandchildren," according to The New York Times.

The publication also notes that the focus on Weisselberg's perks also "overlaps with the Manhattan district attorney's long-running criminal fraud investigation of Mr. Trump and his family business."

The investigation launched by James' office intensifies the mounting pressure against Weisselberg as Manhattan district attorney Cy Vance's office also has the officer on its radar. Vance's office has been working to gain Weisselberg's cooperation as the criminal investigation into Trump and his businesses continues.

Now, the Times reports that the two offices are actually working together:

Rather than risk bumping into each other, the two investigative offices recently began collaborating, another person with knowledge of the matter said. Two assistant attorneys general from Ms. James's office have joined the district attorney's team, which has been seeking to turn Mr. Weisselberg into a cooperating witness against Mr. Trump and the Trump Organization, people with knowledge of that effort said.

The latest report comes just days after the attorney general's office also released a statement about the collaborative effort between both law enforcement agencies."We are now actively investigating the Trump Organization in a criminal capacity, along with the Manhattan D.A."

Roger Stone

Roger Stone Complains About IRS “Deep State” Lawsuit Against Him

Reprinted with permission from Alternet

The U.S. Department of Justice filed a lawsuit against Roger Stone on Friday, April 16, alleging that he owes the Internal Revenue Service (IRS) nearly $2 million. Now, Stone is firing back with his take on the latest lawsuit.

As reports about the lawsuit began circulating online, Stone took to Telegram with his reaction. Along with links to reports about the case, Stone said, "Same Deep State Bullshit — different day," reports Law & Crime.

He added, "After Robert Mueller's dirty cops destroyed me financially the Department of Injustice, well aware of the fact that I have no income and no assets files a bogus civil suit against me. I guess they're still really pissed off about the pardon. Now I have no choice but to defeat them again."

Stone concluded his post with the hashtag written in third person that says, "#RogerStoneStillDidNothingWrong."

However, the Justice Department and IRS argue otherwise. According to the lawsuit, "For each of the years 2007 through 2011, Roger and Nydia Stone filed joint federal income tax returns but did not pay in full the amount of the income taxes they reported as due," the lawsuit alleges. What follows is a chart listing payments the Stones allegedly failed to make."

It also reads, "Despite notice and demand for payment, Roger and Nydia Stone have failed and refused to pay the entire amount of the liabilities described . . . [t]aking into account all payments, credits, and abatements, as of April 2, 2021, Roger and Nydia Stone jointly and severally owe $1,590,361.89 in unpaid income taxes, penalties, and interest for tax years 2007 through 2011, plus further interest and statutory additions that continue to accrue."

The lawsuit also highlights back taxes from 2018 that Stone failed to pay. According to the lawsuit, that year, the political operative filed a separate tax return that did not include his wife. The agency insists Stone "owes the government $407,036.84 after not paying 'in full the taxes he reported.'"

In addition to the Stones, a number of other entities are also named in the lawsuit. Law & Crime reports that those entities include: " Drake Ventures LLC (an "an alter ego of the Stones"), the Bertran Family Revocable Trust ("which holds title to the condominium where the Stones reside"), and an assortment of other parties (Broward County, Fla.; Russell Harris; Galleria Lofts Condominium Association, Inc.; and Galleria Lofts LLC)."

If the tax lawsuit proves to be ineffective in resolving the alleged debt, the Justice Department "seeks an order setting aside the transfer of the Stone Residence to the Bertran Trust as fraudulent."

"The Stones dominated and controlled Drake Ventures to such an extent that it does not exist as an independent entity," the lawsuit claims. According to court documents, the Stones "entered into an installment agreement with the IRS that required them to pay $19,485 each month toward their unpaid taxes." However, "[a]fter Roger Stone's indictment," the couple bought their home "in the name of the Bertran Trust."

Based on the suit, a total of six counts are alleged against the couple. Those counts include:

  1. Unpaid federal income taxes spanning the years 2007 through 2011 by both Roger and Nydia Stone
  2. Unpaid federal income taxes in 2018 for Roger Stone individually
  3. Alter ego liability for Drake Ventures;
  4. Fraudulent transfer to the Bertran Trust
  5. Nominee liability for the Bertran Trust
  6. The case seeks a declaratory judgment as to federal tax liens against all defendants."

Roger Stone has not yet released an official statement about the lawsuit.

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