Crime Pays: Lois Lerner Got Over $129K In Bonuses

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By V. Saxena, February 26, 2015.
Between 2010 and 2013, former IRS director Lois Lerner received over $129K in bonuses, reports Fox News:

Over a three-year period, Lerner, the head of the tax-exempt division at the heart of the IRS targeting scandal, received a 25 percent retention bonus—averaging $43,000 a year—on top of her regular salary.

The federal government uses retention bonuses to incentivize valuable employees who are considering retirement or private sector jobs to stay at their agencies.

Yeah, who could possibly be anymore valuable to Obama’s crony government than a woman who purposefully and maliciously targeted conservative Tea Party groups, right?

Her first bonus came in December 2009, “when she first became eligible for retirement.” Former acting IRS commissioner Steven T. Miller argued then that she could “likely command a much greater pay” if she were to retire and pursue work as an attorney. Yeah, God forbid she stick around not for the bonus money, but because she actually believes in serving America.

Both Steven Miller and Joseph Grant, the deputy commissioner of the tax-exempt divison, signed off on the 2010 bonus, as well as the 2011 and 2012 bonuses.

Keep in mind that the woman they blessed with multiple bonuses happens to be the same sleazy woman who granted a tax-exempt status to the Royal Order of the Jesters, a male fraternal organization that, according to WCTV via the FBI, hosts parties that “generally include prostitutes who perform commercial sex acts on members.”

Moral of the story: Prostitution rings, thumbs up; Conservative groups, thumbs down!

Obama Threatens Consequences If Law Enforcement Officers Don’t Enforce Amnesty

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NEIL MUNRO
White House Correspondent

President Barack Obama used a TV interview to describe law enforcement officials as soldiers under his direct command, and he threatened to punish law enforcement officials who try to ignore his November policy barring the enforcement immigration law against millions of illegals.

“In the U.S. military, when you get an order, you’re expected to follow it,” said Obama, who is legally the commander in chief of the U.S. military. ”It doesn’t mean that everybody follows the order. If they don’t, they’ve got a problem,” he said during his Wednesday interview that aired on MSNBC and the Telemundo Spanish-language network.

“The bottom line is, is that if somebody is working for [U.S. Immigrations and Customs Enforcement] and there is a policy and they don’t follow the policy, there are going to be consequences,” Obama said.

Obama’s threat followed complaints from the Spanish-speaking audience members about officers who try to enforce the nation’s immigration laws.

Obama doesn’t want protests from Latinos or enforcement by U.S. officials.
His Nov. 20 Oval Office amnesty includes a policy directive to immigration officers directing them to stop repatriating illegals, unless the illegals have recently crossed the border, or have have been convicted of a major crime. ”For people who’ve been living here for a long time, they are no longer prioritized for enforcement and deportation,” Obama told the audience.

Recent data shows that Obama is successfully reducing the repatriation of illegals who have been living in the United States for some years.

In 2012, his agencies were repatriating roughly 30,000 illegals per month, out a population of roughly 12 million. But that number fell to roughly 20,000 per month in 2014, and down to 11,000 in January 2015, according to a calculation by the Center for Immigration Studies.

At the record low rate of 10,000 repatriations per month, it will take 100 years for Obama’s administration to comply with federal law, assuming the federal government also ends all other incentives — such as workplace authorization rules — that encourage the return home of the 12 million illegal immigrants.

Obama defended his costly directive by saying he’s focusing law enforcement resources on high-priority threats. ”We’re focused on criminals and gang members who are a threat to our community, and we’re focused on the border and making sure the people who’ve just come,” he said.

Immigration officers “are instructed to focus on criminals and people who have just crossed the border,” Obama said. So “if you’ve been here for a long time and if you qualify, generally, then during this period, even with legal uncertainty, they should be in a good place.”

The cost of Obama’s “prioritization” project is likely huge. Each household of low-skill workers — whether native-born of legal immigrants — costs Americans taxpayers roughly $50,000 per year, in various transfer payments, such as IRS rebates, ant-poverty programs, health-care programs and K-12 education costs, according to the Heritage Foundation.

Obama also acknowledged that his “prioritization” argument was pushed only after he decided to stop enforcing immigration law. ”We recognize we’re not going to deport 11 million people. And so why we would want to allocate resources in a wasteful way — that doesn’t make sense,” he said.

But he’s also redirecting federal resources from enforcement to give get-out-of-jail residency cards to illegal immigrants. The cards will allow at least 5 million illegals to compete for jobs, get IRS anti-poverty payments, get Social Security Numbers and also get on a fast-track process to citizenship and full access to federal support programs.

“The head of the Department of Homeland Security, Jeh Johnson, he is absolutely committed to this new prioritization,” Obama said. “More importantly, I, the president of the United States, am absolutely committed to this new prioritization.”

AMNESTY RECIPIENTS COULD RECIEVE $35K IN TAX BENEFITS IN SINGLE YEAR…

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 Illegal immigrants who are able to obtain Social Security Numbers and work permits as a result of President Obama’s executive amnesty could claim tens of thousands of dollars in back tax benefits, a new Congressional Research Service memo obtained first by Breitbart News reveals.

The report comes following the Internal Revenue Service’s confirmation that once illegal immigrants are granted Social Security Numbers — as a result of Obama’s executive actions — they will be able to file back tax returns and obtain up to four years of tax benefits, including the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

The new CRS report — dated Wednesday and requested to gauge the tax benefits an amnesty beneficiary could potentially accrue — looks at the amount of EITC and CTC for a hypothetical family from from 2011-2014.

“Specifically, you were interested in the value of these credits for a married couple with three and four children,” the memo details. “In addition, you requested that for every year, the family’s income be equal to the maximum amount of earnings a taxpayer could have and still receive the maximum amount of the EITC. This income level is often referred to as the ‘phase-out threshold amount’ and is adjusted annually for inflation.”

CRS calculated the maximum level of tax credits available to hypothetical families with three and four children. It found that for a family with three children in the four years from 2011-2014 “phase-out threshold amount” would be able to obtain $35,521 in the EITC and CTC.

A family of four in that same four year time frame and circumstance could obtain $35,560.

In those years considered, the “phase-out threshold amount” for both hypothetical families was $21,770 in 2011, $22,300 in 2012, $22,870 in 2013, and $23,260 in 2014.

Both hypothetical families were also able to amass around $9,000 worth of the EITC and CTC annually in the years CRS considered.

The report comes as lawmakers have expressed distress that amnestied illegal immigrants could be potentially rewarded for illegal work and as Congress debates a Department of Homeland Security funding bill that would block Obama’s executive amnesty.

Earlier this month Sens. Ron Johnson (R-WI) and Ben Sasse (R-NE) pressed the administration on the tax benefits amnestied illegal immigrants could accrue, calling the expected refunds “amnesty bonuses.”

“This is basic economics: if you want more of something, you subsidize it. By subsidizing illegal entry with four years’ worth of new tax credits, the IRS would promote lawlessness,” Sasse said in a statement at the time. “This program severely undermines the White House’s lip-service to enforcing the law and would increase the burden on law-abiding taxpayers.”

Read the whole thing:

Subject: Amount of the Child Tax Credit and Earned Income Tax Credit for a Hypothetical

Family, 2011-2014

This memorandum responds to your request for the amount of the earned income tax credit (EITC) and the child tax credit (CTC) that a hypothetical family could receive in 2011, 2012, 2013, and 2014. Specifically, you were interested in the value of these credits for a married couple with three and four children. In addition, you requested that for every year, the family’s income be equal to the maximum amount of earnings a taxpayer could have and still receive the maximum amount of the EITC. This income level is often referred to as the “phase-out threshold amount” and is adjusted annually for inflation. (By definition, once a taxpayer’s income is greater than the phase-out threshold amount, the value of the EITC begins to fall, until it reaches zero).

In order to calculate the value of these credits, several assumptions were made. First, the family was assumed to be eligible for both the EITC and the CTC for every year specified.1 Second, every child was assumed to be a qualifying child for both credits.2 Third, all of the taxpayer’s earnings were eligible for determining the credit.3 Finally, this married couple filed their taxes jointly.

1 For a detailed overview of the eligibility requirements for each credit see CRS Report R43805, The Earned Income Tax Credit (EITC): An Overview, by Gene Falk and Margot L. Crandall-Hollick and CRS Report R41873, The Child Tax Credit: Current Law and Legislative History, by Margot L. Crandall-Hollick.

2 The definition of qualifying child for the EITC and the child tax credit do differ. For example, an eligible child for the child tax credit must be under 17 years of age, while a qualifying child for the EITC must be under 19 years of age, or under 24 if a full- time student. In addition, taxpayers must provide the social security numbers (SSNs) of children in order to claim the EITC, while they can provide either an individual taxpayer identification number (ITIN) or SSN for the child to claim the child tax credit. For a more detailed overview of the definition of qualifying children for these credits see CRS Report R43805 and CRS Report R41873.

3 Certain forms of income are not considered earnings for the purpose of the EITC. These include pension and annuity income, income of nonresident aliens not from a U.S. business, income earned while incarcerated for work in a prison, and TANF benefits paid in exchange for participation in work experience or community service activities. In addition, tax filers who claim the foreign earned income exclusion (i.e., they file Form 2555 or Form 2555EZ with their federal income tax return) are ineligible to claim the EITC.

Congressional Research Service 2

The value of the credits is provided in Table 1. Since it is assumed that the family’s income equaled the “phase-out threshold amount,” the family would by definition receive the maximum EITC for a family with three or more children. The maximum amount of the EITC, as well as other inflation adjusted parameters of the credit (and other provisions of the tax code), are published in Internal Revenue Service (IRS) revenue procedures.4

The child tax credit is effectively calculated as 15% of earnings above $3,000, not to exceed the maximum amount of the credit.5 (The maximum amount of the child tax credit is the number of qualifying children multiplied by $1,000.) For example, in 2013, the value of the child tax credit would be calculated as 15% of $19,870 ($22,870 minus $3,000), equaling $2,981 as illustrated in Table 1. In 2014, the child tax credit is calculated using the same formula (15% of $20,260 ($23,260 minus $3,000)). Using the formula, the credit would be equal $3,039. However, if the family has three qualifying children, the credit cannot exceed $3,000, and hence this family’s child tax credit would be $3,000. If the family had four qualifying children, in contrast, the child tax credit in 2014 would be $3,039 as illustrated in Table 1.Unlike the EITC, the amount of the child tax credit is not indexed for inflation.

Table 1. Amount of the EITC and Child Tax Credit for a Stylized Taxpayer, 2011-2014

Year

Earned Income

EITC

Child Tax Credit

Total of EITC & Child Tax Credit

3 Children

4 Children

3 Children

4 Children

3 Children

4 Children

2011

$21, 770

$5, 751

$5, 751

$2, 816

$2, 816

$8, 567

$8, 567

2012

$22, 300

$5, 891

$5, 891

$2, 895

$2, 895

$8, 786

$8, 786

2013

$22, 870

$6, 044

$6, 044

$2, 981

$2, 981

$9, 025

$9, 025

2014

$23, 260

$6, 143

$6, 143

$3, 000

$3, 039

$9, 143

$9, 182

Source: CRS calculations based on Internal Revenue Code section 32 and 24 and Internal Revenue Procedures 11-12, 11- 52, 13-5 & 13-35

Notes: Earned income is equal to the maximum earned income a married taxpayer can have and still receive the maximum EITC amount.

Figure 1 provides a graphical representation of the amount of the EITC and child tax credit by earnings for a married couple with three children in 2014. As this figure shows, the EITC gradually increases to its maximum value of $6,143, remains constant at this maximum value, and then begins to fall in value when earnings exceed the phase-out threshold amount of $23,260. In addition, the child tax credit reaches its

4 The maximum EITC amount for 2011 through 2014 can be found in Revenue Procedure 11-2, 11-52,13-5 and 13-35 available at http://www.irs.gov/pub/irs-drop/rp-11-12.pdf, http://www.irs.gov/pub/irs-drop/rp-11-52.pdf, http://www.irs.gov/pub/irs- drop/rp-13-15.pdf, and http://www.irs.gov/pub/irs-drop/rp-13-35.pdf.

5 Currently, eligible families that claim the child tax credit can subtract up to $1,000 per qualifying child from their federal income tax liability. If a family’s tax liability is less than the value of their child tax credit, they may be eligible for a refundable credit calculated using the earned income formula, which is 15% of earnings above $3,000. Given the low income of the family in this example, they will calculate the credit using the earned income formula.

Congressional Research Service 3

maximum value of $3,000 when earnings equal $23,000. The child tax credit does not begin to fall in value until income is greater than $110,000 for a married couple filing jointly. Hence, when this family’s income is between $23,000 and $23,260 they will receive the maximum combined credit of $9,143.

Figure 1. Amount of the EI TC and Child Tax Credit
for a Married Couple with Three Children in 2014, by Earnings

Source: CRS calculations based on Internal Revenue Code section 32 and 24 and Internal Revenue Procedures 11-12, 11-

H&R Block Helped Shape Obamacare, Now Set For Gigantic Payday

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RICHARD POLLOCK
Reporter

Richard Pollock is the former Washington bureau chief of PJTV.
Get your billions back, America! (And give a bunch of it to H&R Block.)

Five years ago, a bevy of high-priced H&R Block lobbyists worked on the tax preparation company’s behalf to shape the Affordable Care Act.

And this April 15, those efforts are set to pay off in a big way for the company.

H&R Block is well positioned to earn more than $100 million in additional fees from low-income Obamacare enrollees as they face the daunting challenge to properly file this year’s complicated health-related tax forms.

Consumers are familiar with H&R Block’s massive “Get Your Billions Back” ad campaign that includes direct appeals to Obamacare recipients who will have to file health information on this year’s IRS tax forms.
WATCH:

Reached by The Daily Caller, H&R Block refused to discuss the lobbying role it played in 2009 and 2010 — when many special interests were working behind the scenes to shape important elements of the health-care law.

The company has admitted Obamacare will impose major changes on taxpayers, stating in a Jan. 5 press release that the health-care law had produced “the biggest tax code change in the last 20 years.”

H&R Block’s decision to seek windfall profits from the Obamacare law also has riled some of its competitors, which are instead providing free help to low-income enrollees in filling out the complex tax forms.

Ryan Ellis, the tax policy director at Americans for Tax Reform and a former H&R Block senior preparer told TheDC that the company hopes to profit from the plight of Obamacare enrollees and those without health insurance who, for the first time, will have to file special tax forms related to their health-care coverage.

Ellis said the Obamacare participants are the “real target audience. It’s an alignment of interest.”

Ellis noted that H&R Block’s profits would easily exceed the fees it collects from Obamacare tax forms.