Right Thinking From The Left Coast
The price of anything is the amount of life you exchange for it - Henry David Thoreau

Monday, April 11, 2011

IRS On the Loose

What the?

Earlier this year, the Internal Revenue Service proposed a regulation that would force American banks to become deputy tax collectors for foreign governments. Specifically, they would be required to report any interest they pay to accounts held by nonresident aliens (a term used for foreigners who live abroad).

The IRS issued this proposal, even though Congress repeatedly has voted not to tax this income because of an understandable desire to attract job-creating capital to the U.S. economy. In other words, the IRS is acting like a rogue bureaucracy, seeking to overturn laws enacted through the democratic process.

But that’s just the tip of the iceberg. The IRS’s interest-reporting regulation also threatens the stability of the American banking system, makes America less attractive for foreign investors, and weakens the human rights of people who live under corrupt and tyrannical governments.

There’s a video accompanying the link which I highly recommend.  The reason behind this is the Administration’s desire to improve global tax compliance.  While that might or might not be a laudable objective, the fact is that Congress has forbidden it.

We’ve this kind of regulatory overreach before—using the EPA to enact carbon restrictions in defiance of Congress, for example.  Obamacare and Dodd-Frank are filled with blanks that the regulators are filling in. But this has to be a new low.

For too long, Congress has punted the responsibility for law-making to the executive branch.  We can now see the culture this has created—agencies that are laws unto themselves.  It’s time to put a stop to this.  And it’s not a conservative-liberal thing either.  Both parties should support putting the clamps on the bureaucracy.  That is, unless Democrats are really itching to have President Palin’s HHS passing regulations on abortion.

Update: Continuing this theme, you must read Don McGahn’s response to those who want the FEC to go ahead and enforce laws that the Courts have declared unconstitutional.  Money quote:

When I joined the FEC, I was serious in taking my oath to “support and defend the Constitution of the United States against all enemies, foreign and domestic.” It was not to uphold the wishes of the reform lobby and their belief in the amorphous “spirit” of McCain-Feingold. But that is what Ornstein demands: to violate my oath by pursuing unfounded and unsupportable investigations of Americans who have banded together simply to speak or otherwise participate in political discourse.

Stand by for Obama to replace McGahn forthwith.  We simply can’t have the executive branch following the Constitution?  What are they, Oath Keepers or something?

Posted by Hal_10000 on 04/11/11 at 05:54 PM in Politics   Law, & Economics  • (0) TrackbacksPermalink
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