The video after this post contains an old campaign ad that Tom Daschle ran that talks about his frugality. One line in particular really sums up why he didn’t pay his taxes like he should have! “A penny saved is a penny earned“! But in his case, it was thousands of dollars that he was trying to save, not pennies. It’s particularly disgusting for him to have evaded paying his taxes when he has called out tax cheats in the past. And this ad just underscores how hypocritical he is for not having paid his own taxes. He’s purporting to have driven this old Pontiac for 15 years because he’s not a big spender like the rest of the politicians in Washington. Well, Mr. Frugal, I guess you’re so cheap that you didn’t want to pay income taxes on the free chauffeured limousine that you used.
But really,it’s outrageous that three of Obama’s nominees have evaded paying taxes! Here’s more on that from The Washington Independent:
“President Obama’s team of advisers, initially touted for its wealth of experience and qualifications, continues to unravel as Nancy Killefer withdraws her nomination for chief performance officer, CNN reports. In this newly created position, Killefer would have worked with the Office of Management and Budget to increase “efficiency, transparency and accountability” in government.
This tax-evasion revelation comes on the heels of similar scandals that have embroiled Treasury Secretary Timothy Geithner and health czar-designee Tom Daschle. While Killefer’s post is not as high-profile as Geithner’s or Daschle’s, its central focus is fiscal responsibility. A lack of such discipline in Killefer’s personal life would reflect poorly on her integrity for the job.
If her case were an isolated one, she might be able to push through with an apology, as Geithner has and Daschle likely will. But now that a pattern has formed, she appears to be the proverbial straw that broke the camel’s back.
She is the second Obama nominee to withdraw her name. New Mexico Gov. Bill Richardson gave up his commerce secretary nomination amidst a federal investigation into his dealings with a California financial company contracting with the state government.”(End of Excerpt) Read the rest here:(http://washingtonindependent.com/28683/another-tax-evasion-another-obama-administration-casualty
This is not change that I can believe in. Everybody makes mistakes & I’m glad President Obama takes responsibility for the Tom Dashcle pick. But, four different nominees have personal financial issues. Why is it that they felt like paying taxes didn’t apply to them? Because a lot of rich folks feel like they’re akin to royalty here in America. Especially politicians & celebrities. I mean,why should they have to pay taxes like the serfs? Here’s an excerpt from an article on this very subject from The Progress Report:
“The personal income tax is a bad thing, but as long as it continues it should at least be applied fairly. Currently it is not.
Here is a news update from Taxpayers for Common Sense. TCS is the best organization that monitors excessive government spending, corruption and corporate welfare. The Internal Revenue Service (IRS) recently released tax statistics from the past year revealing that the number of wealthy individuals and large corporations audited in the 2004 fiscal year increased sharply, though it still trails highs from the mid 1990’s.
The new numbers underscore that the IRS pit bulls have been a wealthy tax scofflaw’s best friend for too long. Audits were at an all time low, allowing taxpayers to cheat the federal government out of tens of billions annually. With low-income taxpayers facing more audits than high-income taxpayers, the agency has become our nation’s pet Chihuahua: a lot of bark, but no bite.
However, the IRS’s new data suggests that they may be turning the corner. Audits for taxpayers earning $100,000 or more rose 40 percent over the previous year. More than 195,200 individuals were audited by the agency in fiscal year 2004, up from nearly 139,400 in fiscal year 2003.
While this represents a 75 percent increase over the last two years, it falls significantly short of the 210,000 high-income individuals audited in 1996. The IRS data also showed an increase in the number of large corporations audited. More than 4,400 companies with assets of at least $250 million were audited, an increase of 32.5 percent over the 2003 fiscal year, when just over 3,300 companies were audited.
The audit rate for the largest companies was 40 percent last fiscal year, compared with 30 percent in fiscal 2003. Corporate audits have declined sharply for nearly a decade. The audit rate for large companies peaked most recently at 49.6 percent.
Audits are vital because tax evasion schemes continue to multiply like rabbits, through seminars held by present day snake-oil salesman and even at some of America’s leading law firms, investment banks and accounting firms. These slick promoters trick people into believing that they don’t have to pay taxes because of some bogus exemption, deduction or credit. The hucksters get rich and the suckers go to jail.
Currently, only about 1.5 percent of personal returns from America’s wealthiest taxpayers get reviewed, and this number is unlikely to go up. The IRS is requesting increased funding so they can be more effective by targeting specific abuses. However, thanks to Congress, the IRS disproportionately continues to target the tax returns of the working poor. Wage-earning taxpayers are held to the rules while the IRS and Congress pass over those with the greatest means to disguise their income. The purpose of audits is to recover the greatest amount of unpaid taxes; the IRS should be targeting the very taxpayers they are ignoring.
Working Americans have very few ways to hide their income from the IRS. The Bill Gates and Warren Buffetts have a panoply of options such as using off-shore accounts and hiding their earnings by creating paper companies or business partnerships. Lost taxes on partnerships are estimated at $9-$64 billion.
Congress is as much to blame as the IRS for these problems. Part of the difficulty in determining the accuracy of partnership returns is the complexity of the tax code. Moreover, in recent years, Congress has decimated funding, and consequently the auditing staff, for the IRS. Congress should work with the IRS to increase equity and fairness of the auditing process and give the IRS the resources the agency needs to target even more wealthy tax scofflaws.”(End of Article which was taken from: http://www.progress.org/2004/tcs173.htm)
The wealthy are doing their very best to evade taxes in other countries as well. Let’s use Germany as an example. Time reports:
“On Monday, more than three dozen prosecuting attorneys and several hundred police swarmed out to search offices and private homes of other suspected tax evaders in Frankfurt, Munich, Stuttgart, Ulm and Hamburg. And prosecutors said their work was just beginning.
For the coalition government led by center-right Chancellor Angela Merkel, the scandal could hardly have come at a worse time. Germany is already engaged in a deepening ideological battle over the bloated salaries of its top corporate executives. Socialists are calling for a statutory minimum wage, a move most conservatives oppose, as well as for a law to limit executive salaries. Many voters are angry that ordinary workers have to carry the burden of Germany’s economic reforms while executives give themselves huge pay increases, and they have been flocking to an opposition party called the Left, an amalgam of the former East Germany’s ruling communist party and West German leftists. Though long established in the East, the Left managed in January to enter state legislatures in the large western states of Hesse and Lower Saxony.
No one expects a communist uprising, of course: The Left is still a negligible presence in most of Germany. But as the police swarmed out on Monday, it was becoming clear that society’s wrath would be swifter and harsher than usual for Germans deemed greedy enough to shirk taxes. Even Merkel, generally reluctant to rush to judgment, seemed stunned by the breadth of the scandal. “I think a lot of people in Germany feel the way I do: that this goes well beyond what I ever imagined could be possible,” Merkel told reporters.
The tone was even harsher from Merkel’s aides and leaders of the other political parties, many of whom called for stiff jail sentences for those convicted of tax evasion. “It would be unbearable if, in the end, deals were made instead of putting people on trial,” said Kurt Beck, chairman of the Social Democrats, junior partner in the federal government coalition.
Merkel’s political challenge now is to prevent the widespread anger over the tax evasion scandal from becoming a broader political crisis. In Germany, it’s not necessarily enough to just throw a few corporate executives in jail and be done with it. A poll conducted earlier this month by Infratest Dimap found that 69% of Germans feel wealth in the country is unjustly distributed. And that sense could have political ramifications: polls show declining support for Germany’s social market economic system. The Left has surpassed the Greens and the Free Democrats to become, with the allegiance of 11% of the electorate, the country’s third largest political party.”(End of Excerpt) Read the entire article here:(http://www.time.com/time/world/article/0,8599,1714241,00.html?iid=sphere-inline-bottom
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