Hey Obama here's an onshore tax loophole you can plug!

While it may be commendable that President Obama is going after the offshore tax loopholes. Even though it may cripple some silicon valley firms. Well I guess after the banking industry and the car makers what other industries are there left to cripple? Meanwhile, the Obama administration has ignored tax programs like the Earned Income Tax Credit program right here in the U.S. that has a fraud rate approaching 30%.



Here is the money (literally billions) quote from a Treasury Department audit report on another program that tells that illegal immigrants are gaming the system and also picking up child tax credit money from U.S. taxpayers. Again billions of dollars worth of fraud!:



Outrageous! But, to get the full story that is not hidden in the bureaucratic speak of the Treasury audit report. You should read this analysis by Edwin S. Rubenstein called The Earned Income Tax Creditand Illegal Immigration
A Study in Fraud, Abuse, and Liberal Activism. Here are some of the money quotes from it:

"But enthusiasm for the credit has blinded policy makers to its problems. The EITC program is dominated by fraud. Year after year about one-third of all EITC returns are based on illegal multiple returns, phony Social Security numbers, or claims of non-existent children or spouses. A disproportionate share of illegal alien households receive the benefit.

President Obama’s stimulus program includes tax cuts for low-income workers. The purpose, of course, is to put money back into taxpayers’ hands so they will spend it and boost the economy. But thanks to the EITC, much of the “tax relief” will go to people who have never paid a cent of tax—and may have already defrauded the government of huge sums each year.

As you know, the improper payments made in the Earned Income Tax Credit make up the second largest portion of government-wide improper payments for fiscal year 2005, estimating $9.6 to $11.4 billion dollars paid improperly.In fiscal year 2004, EITC had an improper payment rate of 25 percent. For fiscal year 2005, it was 28 percent and this is on the low side, because it’s just an estimate."

On the low side because this is "just an estimate"? How does that make you feel my fellow U.S. taxpayers! File these reports of illegals reaping refunds of U.S. tax dollars in the Hola suckers file.

SOME REAL BEER CAN POLITICS

How Obama's tax plan really works....Let's talk beer!

Obama's tax cut plan is a good one

Hope is on the way if today's Washington Post article on how the Obama administration plans to give U.S. taxpayers an immediate tax cut is any indication. What is good to see is that it looks like a very efficient means to get money into the wallets of us taxpayers. Here is the money quote:

"Obama, in the second week of a vacation in Hawaii, continues to work on his economic plan, aides said. He is considering immediate tax cuts of $1,000 for couples and $500 for individuals, which would be delivered through reduced tax withholding from paychecks, a transition aide said. That plan could cost about $140 billion over the next two years, the aide said."

I think this plan is good for a number of reasons because it:

1)Can be implemented fast and with immediate results.

2)Can be implemented multiple times (if needed) without delay.

3)Would eliminate “pork” and costly bureaucratic delivery of checks (from the IRS) since the money will go directly and immediately to U.S. taxpayer’s wallets.

4)Would encourage people to be legally employed and not work “off the books”. Increasing tax revenues that would otherwise be lost.

It's this kind of thinking from the Obama administration that may help the middle class more than any Bush Administration or Pelosi/Reid left leaning Democratic proposals ever did. I say Obama should go for it.

Only the little people pay taxes.

My neighbor announced several months ago that he was giving up the business he ran out of his home and went back to working as a manager of a Supermarket. He then offered all he knew is when you work for someone else you pay a hell of a lot more in taxes. I told him welcome to the club. David Ignatius in today's Washington Post has an insightful piece about how we in the middle class are getting screwed or at least paying our fair share taxes while some of the "masters of the universe" go out and get to buy another home. Here is just one of the money quotes:

The most prominent critic is mega-billionaire Warren Buffett, chief executive of Berkshire Hathaway and a director of The Washington Post Co. He famously admonished his fellow moguls a month ago that they were paying a lower tax rate than the people who cleaned their offices -- and offered them $1 million if they could prove otherwise.

Or as Leona Helmsley said:

We don't pay taxes. Only the little people pay taxes- Leona Helmsley