Another IRS Scandal; Employees Lie to Get Welfare, Food Stamps | Judicial Watch


Is America on the brink of civil war? This viral video from ThinkOutsideTheTV shows how America may be nearing war with most people in the country not even knowing it.

Is America on the brink of civil war?

This viral video from ThinkOutsideTheTV shows how America may be nearing war with most people in the country not even knowing it.


Federal Workers Owe $3.5 Billion In Back Taxes

March 8, 2013 4:10 PM ET
WASHINGTON (AP) – The number of federal workers and retirees who owed delinquent income
taxes jumped by nearly 12 percent in 2011, the Internal Revenue Service said Friday.
Nearly 312,000 federal workers and retirees owed more than $3.5 billion in back taxes as of
Sept. 30, 2011, the agency said. The year before, about 279,000 workers and retirees owed
$3.4 billion.
Overall, the 9.8 million workers included in the data had a delinquency rate of 3.2 percent.
That’s better than the general public. The IRS says the delinquency rate for the general
public was 8.2 percent.
The Department of Housing and Urban Development had the highest delinquency rate, at 4.4
percent. The Treasury Department, which includes the IRS, had the lowest, at 1.1 percent.
Among independent agencies with more than 1,000 workers, the Government Printing Office had
the highest delinquency rate, at 7.6 percent. The National Credit Union Administration had
the lowest, at 1 percent.
House employees had a higher delinquency rate than workers for the Senate, but not by much.
House workers had a delinquency rate of 3.7 percent, while Senate workers had a delinquency
rate of 3.3 percent. Federal court employees had a delinquency rate of 2.7 percent.
The IRS says most residents who owe back income taxes file returns but cannot pay the full
amount at tax time. Others have their tax bills increased through audits and cannot pay the
higher bill.
The statistics on federal employees do not include those who are on payment plans. The IRS
doesn’t publicize the data but makes it available upon request.
The new data comes as many federal workers are facing unpaid furloughs because of automatic
spending cuts known as the sequester. Many federal workers have already received furlough
notices; others will receive them in the coming months.
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Copyright 2013 The Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed

The US Government at war with its Citizens

“We Do Not Have a Spending Problem” – Sen. Harkin

Sen. Harkin: We Do Not Have a Spending Problem

by JOHN SEXTON Feb 14, 2013 3:26 PM PT

The GOP video team posted this clip of Sen. Harkin reassuring the nation that, despite our $16 trillion in debt, growing entitlements and massive deficits, we are not broke:

This argument sounded so familiar, but it took me a moment to realize where I’d heard it before. Back in March 2011, anti-capitalist Michael Moore gave almost the same speech in Madison, WI:

America is not broke. Contrary to what those in power would like you to believe so that you’ll give up your pension, cut your wages, and settle for the life your great-grandparents had, America is not broke. Not by a long shot. The country is awash in wealth and cash. It’s just that it’s not in your hands. It has been transferred, in the greatest heist in history, from the workers and consumers to the banks and the portfolios of the uber-rich.

Harkin was judged the 5th most liberal Senator by National Journal in 2011 and again in 2012. Given his apparent reliance on anti-capitalist Moore for this talking point, he needs to move up the list a few notches in 2013.

IRS delays issuing tax refunds; fiscal cliff to blame? –

IRS delays issuing tax refunds; fiscal cliff to blame? –

by Walter Hamilton
February 8, 20136:00 a.m.

Don’t worry if you haven’t received your expected IRS tax refund. Most people haven’t — and the fiscal cliff is to blame.

The Internal Revenue Service is far behind its normal pace in processing federal tax returns and mailing billions of dollars in refunds, according to a new report.

Through Feb. 3, the agency sent out only about $4.3 billion in refunds, according to the analysis by Nicolas Colas, chief market strategist at ConvergEx Group in new York.

That’s far behind the $26.9 billion in refunds issued at this point in 2012. That’s a difference of $22.6 billion.

And 2012 itself was a slow year because the IRS was grappling with security issues, according to Colas. Going back to 2005, the IRS normally has mailed $30 billion to $40 billion in refunds by this point.

This year’s delay is an unwelcome byproduct of Congress’ acrimonious standoff over the so-called fiscal cliff at the end of last year, according to Colas. The IRS had to wait for the year-end jockeying to conclude before it could determine exact tax policy and print the appropriate forms.

The agency only began accepting returns from individual taxpayers on Jan. 30. And those with more complicated returns — such as small businesses claiming depreciation credits and families with educational write-offs — won’t even be able to file for several more weeks because the applicable forms aren’t ready yet.

Aside from the annoyance for people awaiting a return of their money, the delay could weigh on the economy in the early part of 2013.

About 80 million filers, or 58% of the total, get money back each year, Colas wrote. The average refund is $2,927, or an entire month of take-home pay for a family earning the median annual income of $50,054 (assuming a 20% tax hit).

As Colas points out, $22.6 billion equates to 900,000 new cars at $25,000 each or 113,000 new homes at $200,000 each.

“This is real money to most American households,” Colas wrote.


Social Security (The Ponzi Scheme That Makes Bernie Madoff Look Like An Alter Boy)

Reblogged from the New American / Bob Adelman
(you can find it here – Social Security to Run Out of Money Sooner Than Estimated.)

Friday, 08 February 2013 16:00

Social Security to Run Out of Money Sooner Than Estimated

Written by  

 February report from the Congressional Budget Office (CBO) about the inevitable insolvency of Social Security is discouraging enough without checking the CBO’s assumptions. A closer look at the report and those assumptions reveals a Ponzi scheme that is going to crater sooner than expected.

For 2013 the CBO said that beneficiaries will receive $816 billion in benefits while revenues from payroll taxes will be $846 billion, leaving the program with a surplus of $30 billion. By the year 2023, however, the CBO estimates that outgo will exceed $1.4 trillion compared to revenues of $1.3 trillion, a shortfall of about $100 billion.

According to Jed Graham at Investor’s Business Daily that means that the funds backing Social Security (which include Old-Age, Survivors, and Disability Insurance trust funds) will go to zero by 2031. He estimates that beneficiaries just now becoming eligible for retirement benefits will suffer huge cuts in their checks by the time they turn 80 — just when most of them will need them the most. And “workers 44 years old [today] face the prospect of retiring after the trust fund is bust.”

Chuck Saletta, at The Motley Foolagrees. He notes that the temporary “surplus” in the funds will peak two years sooner than estimated by the CBO just a year ago and will have $140 billion less in them in 2022 than projected. He says the “collapse date” will be moved back to 2033 or even sooner.

But neither of these picked up the footnote from the original CBO report:

The CBO projects that the DI [Disability Insurance] trust fund will be exhausted during the fiscal year 2016. Under current law the Commissioner of Social Security may not pay benefits in excess of the available balances in a trust fund, borrow money for a trust fund, or transfer money from one trust fund to another.

So what is a good economist to do? They just assume that somehow those DI benefits will be paid from somewhere: “CBO … assumes that the Commissioner will pay DI benefits in full even after the trust fund is exhausted.”

The CBO then calculates the additional shortfall that paying those DI benefits will create: another $1.2 trillion. That brings the total “surplus” remaining in the trust funds in 2023 to a little over $1 trillion. That’s just enough to pay benefits to everyone for about three more years.

It’s even worse. Two college professors writing in the New York Times on Tuesday claim that the assumptions made by the Social Security Administration are vastly inaccurate: “Their methods are antiquated, subjective and needlessly complicated — and as a result are prone to error and to potential interference from political appointees.” As a result more people will retire and start drawing benefits than it estimates.

One would think that these awful numbers would start getting peoples’ attention who would then begin to bring pressure on Washington to address the issue. But self-interest on the part of participants and politicians is keeping any serious conversation about the matter from occurring. First, the standard line from the Social Security Administration that it’s safe and sound is enough to satisfy anyone who might be curious about it. Secondly, the beneficiaries continue to receive their checks and so what’s the problem?

Gary North explains:

The essence of the Ponzi scheme is not simply its statistical unsustainability. The essence of the Ponzi scheme is that it is like an addictive drug. Once someone enters into it, he finds it psychologically impossible to face the reality of the unsustainable statistics of the program….

The essence of the Ponzi scheme is not statistical; it is psychological. It creates belief in that which is statistically impossible, and the degree of belief is so strong that anyone who points out the statistical impossibility of the scheme risks being cut off personally by the victim. Ponzi scheme economics creates the classic attitude: shoot the messenger!

There’s another reason why the estimates from the CBO and projections from the college professors and other pundits quoted are likely to be too optimistic: As participants in Social Security begin to learn of its increasingly unstable condition, they will begin to draw their money out of it at the earliest opportunity. This may explain why more and more retirees are starting withdrawals at age 62 rather than waiting. It may also explain why more and more people are attempting to draw disability benefits as well. The mentality about Social Security is changing: “Let’s get ours while we can.”

If such a conclusion proves to be valid, then there’s nothing to be done. Charles Blahous, commenting at the website, said,

The CBO report paints a disturbing portrait of unsustainable federal debt accumulation driven entirely by spending, and by entitlement spending in particular. To spare our children and grandchildren from unprecedented levels of taxation and/or indebtedness, entitlement reforms that slow these programs’ growth are desperately needed, the sooner the better.

At this late date, tinkering with increases in payroll taxes and ages of eligibility and cost-of-living-adjustments would only put off the day of its cratering. Social Security is a Ponzi scheme, and all Ponzi schemes fail. This one appears to be failing sooner than predicted.

A graduate of Cornell University and a former investment advisor, Bob is a regular contributor to The New American and blogs frequently at, primarily on economics and politics. He can be reached