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Congress Sics IRS on “Enemies”

Bruce Krasting's picture




 

I was thinking of writing a book. “The Coming Age Warfare”. If I did get around to it, the following story might be the first chapter. Like most wars, the one I see coming between young and old will simmer for years. Along the way there will be skirmishes that result in injury and bad feelings. I find this example comical. But there is nothing funny about it.

Three members of Congress have shot a cannon at the American Association of Retired Persons (AARP). Republicans Herger (CA), Boustany (LA) and Reichert (WA) sent a letter to the head of the IRS asking that the tax status of AARP be reviewed.

 

 

AARP is a 501(c)(4). That means they pay no taxes at all. Sort of like a church. At first look this might make sense. After all, the AARP is a non-profit that is just trying to help out the oldsters. Right?

 

Wrong! AARP took in $600,000,000 during 2010 from endorsement deals. Not a penny of taxes was paid.

Anyway, the AARP fired back with a (mealy mouthed) letter the next day:

 


AARP Response to Recent Letter from Reps.
.
Herger, Boustany and Reichert

We are disappointed that the letter seeks to decry the exact kind of pro-consumer, market-changing efforts that AARP has led since our founding in 1958.

 

You can bet the folks over at the AARP are “disappointed” that some congressmen have sic’ed the IRS on them It’s worth $150mm a year to them.

I wouldn’t worry about the AARP just yet. They have an army of political friends and some big shot lawyers. It’s a safe bet that the IRS sits on this until 2013 when a (potentially) new IRS Commissioner has the corner office. In the meantime, one can expect that the AARP will direct their campaign investments contributions wisely. They will support those candidates who will push to preserve the cushy tax status of the AARP.


 

Note:

This business with tax breaks for the AARP (and other big 501(c)(4)s) is another good example of how screwed up our tax laws are. The current system just creates carve-outs and preferences for powerful groups. Why? The answer is that those same powerful groups have control over the outcome.

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Thu, 12/29/2011 - 13:24 | 2019588 OldTrooper
OldTrooper's picture

the bulge bracket demo (baby boomers) is going to have to fight to actually collect on all the things they voted for themselves when they were younger

You bet they have a fight coming.  Funny thing, long ago oldsters voted for it - now youngsters have to pay for it.  I will be very disappointed in younger folk if they don't fight over this.

Thu, 12/29/2011 - 15:25 | 2020012 johnnynaps
johnnynaps's picture

At the rate my age group is acquiring well-paying jobs, we might not have to fight at all! I know I've contributed zero to their fund the last 2 years and it doesn't look like that will change in the near future! But hey, what's a cultured, well-travelled 6 foot 210 pound presentable 32 year old with a bachelors in Bus. Mgmt., 500 pound deadlift, 6 minute mile time and 9 yrs of related work experience who never gets sick and doesn't need health benefits worth? Judging by the lack-luster number of interviews, not much! It's cool, I'm done supporting this shitty system anyway!

Thu, 12/29/2011 - 15:14 | 2019963 Lord Koos
Lord Koos's picture

just for the record, Social Security was established long before the boomers were born.  So they didn't "vote for it" for themselves, although they did pay into it.  

Thu, 12/29/2011 - 19:30 | 2020618 OldTrooper
OldTrooper's picture

Point well taken.  But haven't most of us been complicit in its continuation on some level?  I would suggest that failing to continuously, vigorously oppose the welfare state (or warfare state, or police state) is tantamount to voting to continue and expand it.  The boomers may end up paying dearly for this as few are really prepared for what is coming.  It's a shame, because there have been warning signs for at least 30 years.  Maybe they could have changed things instead of drifting along, content with the staus quo, looking forward to the payout.

Thu, 12/29/2011 - 10:48 | 2019058 Blankman
Blankman's picture

La Raza needs to worry more about keeping thier under 12 mexican youth away from sugar laden beverages, instead of trying to conquer the SouthWest.  

Thu, 12/29/2011 - 11:20 | 2019160 lolmao500
lolmao500's picture

La Raza are like the latino klux klux klan.

Thu, 12/29/2011 - 10:53 | 2019077 Mercury
Mercury's picture

I'm sure there will be a program for that too if the First Lady's current efforts don't burn up enough money.

Thu, 12/29/2011 - 15:06 | 2019935 NotApplicable
NotApplicable's picture

Excuse me, but that's known as "sopping up liquidity." Now, before you try and tell me that it will still leak out into the overall economy, well, I'm here to say that all of that cash will stay safely in their friends' pockets, only affecting the luxury economy (meaning everyone who doesn't subsist on dog food).

The man on the street will no more notice this than they will a rise in the price of milk from $900 to $910 per gallon.

Seriously

Thu, 12/29/2011 - 09:50 | 2018852 Cultural Capital
Cultural Capital's picture

Soylent Green, Soylent Green!

Thu, 12/29/2011 - 15:29 | 2020032 Quinvarius
Quinvarius's picture

As long as I get it for free and pay no sales tax.

Thu, 12/29/2011 - 09:44 | 2018834 HoofHearted
HoofHearted's picture

If we all make enough campaign contributions, maybe each of us can get 501(c)4 status...

Thu, 12/29/2011 - 09:43 | 2018831 ratpack1968
ratpack1968's picture

Both AARP and churches should be subject to tax.  

Thu, 12/29/2011 - 15:12 | 2019955 Lord Koos
Lord Koos's picture

Funny these guys aren't going after the Catholic church, they make AARP look like a mom & pop operation in comparison.

Thu, 12/29/2011 - 15:56 | 2020120 Bob Sacamano
Bob Sacamano's picture

Catholic Church does not hold a candle (no pun intended) to BHO's Jeremiah Wright church.

Thu, 12/29/2011 - 13:21 | 2019577 pvzh
pvzh's picture

Re: "churches should be subject to tax"

Would not it be akin to taxing God? May not sit well with american ideology.

Thu, 12/29/2011 - 14:03 | 2019724 CrockettAlmanac.com
CrockettAlmanac.com's picture

All taxation is theft.

Thu, 12/29/2011 - 13:14 | 2019552 anarchitect
anarchitect's picture

I'd modify this to say that any organization that lobbies to perpetuate the existing sea of entitlements or subsidies should be subject to tax.  All of this crap has to be paid for, and it's befitting that those who lobby for it should put their money where their mouths are.  AARP qualifies in spades.  Total effing wankers.

Thu, 12/29/2011 - 11:26 | 2019178 bank guy in Brussels
bank guy in Brussels's picture

Indeed it is a fact that so-called 'non-profit organisations' are one of the biggest pockets of corruption in the Western world, and the US in particular ... and what some churches have become, poses a difficult question.

'Non-profits' are the vehicle by which big corporations and governments deploy resources of propaganda. Almost any big organisation with lots of money, traces that money back to the service of corporate or government interests.

They are the main method the CIA uses around the world (the fake 'pro democracy' organisations in all the 'colour revolutions', the CIA's Wikipedia project to control the internet and dupe everybody into believing any lies put there.)

Charity for people who need it is really a good thing, beloved of God ... but the largest dollar-volume of 'non profit donations' - given by big corporations - go to support the evils of the system, tax-free propaganda and lobbying and bribing.

The good guy who helps somebody with cash out of pocket, doesn't get the 'deduction' though he really helped somebody. That's not fair by comparison.

Religious and spiritual work indeed makes a good question about taxes ... does the work of God need a tax break, or just freedom to pray and spread the truth?

But at the very least the commercial and non-religious things some modern 'churches' are doing, should be within the tax loop.

Thu, 12/29/2011 - 15:38 | 2019891 MachoMan
MachoMan's picture

But at the very least the commercial and non-religious things some modern 'churches' are doing, should be within the tax loop.

As Eddie says, Bingo!  If a church purchases a parcel that is used for its primary place of worship, then cool...  however, when a church is an incredibly large landholder...  or has multiple parcels for questionable worship purposes, then it should be taxed on the price of the land at the time of sale (when it purchases the land)...

The problem, in large part, is that tax exempt actors get to compete with tax paying actors for the same resources...

Further, there is a negligible difference between for profits and not for profits...  the principal actors of each respective organization can make out like bandits...  by making a distinction solely on profit retention, our policy makers have created obvious and perverse incentives...  meaning, brewster's millions (actually, brewster's millions is probably a very conservative and naive characterization, given where a lot of the money ends up). 

Thu, 12/29/2011 - 11:45 | 2019227 Bendromeda Strain
Bendromeda Strain's picture

Finally, an honest exposition on the situation. I was getting bruised by all the knee-jerking above. The reasons churches are tax exempt are sound, and if the church becomes a quasi political animal (esp like oh, say, AARP) then it should answer to those activities. A true church does not look to Government, and a sound Government doesn't need to look at churches. Several above seem to be saying, the Government needs revenue through no fault of its own. Look over there at them, they have stuff and we want it.

This place is overrun with people who can't seem to go from A>B. Short term thinkers who must have found their way here by mistake.

Thu, 12/29/2011 - 12:48 | 2019441 ATM
ATM's picture

Sorry dude but I think it is you who can't go from A - B.

Churches and not-for-profits become politicized because they have tax-free status! A true charity shouldn't have a problem with taxes because they are spreading the wealth around and aren't keeping it!

Polical Shells have been created so that the very politicians who benefit from them have a ready and willing source of political contributions  - namely from the tax-free entities they created.

What you are saying is that the very government that makes such fucked up rules to empower themselves should also then decide who and who hasn't become a "quasi-political animal". 

The government is stripped of power when they rules they make can only be applied to everyone equally. If we have an income tax then everyone get the same deal. 

Thu, 12/29/2011 - 14:27 | 2019805 Dr. Acula
Dr. Acula's picture

>A true charity shouldn't have a problem with taxes because they are spreading the wealth around

Some churches don't want to drop charitable bombs on wedding parties 5000 miles away.

 

Thu, 12/29/2011 - 15:28 | 2020028 Quinvarius
Quinvarius's picture

Those churches are un-American.

Thu, 12/29/2011 - 14:47 | 2019857 NotApplicable
NotApplicable's picture

Blasphemy! We'll have no religions of peace around here!

No sir, not a one.

Onward [religion of choice] Soldier!

Thu, 12/29/2011 - 13:09 | 2019522 Silver Dreamer
Silver Dreamer's picture

Default on the debt, and close the IRS.  I want the IRS closed to stop the fascism, but I'm also aware it isn't going to happen without drastic measures.

Thu, 12/29/2011 - 11:50 | 2019246 john39
john39's picture

the tax break is precisely why churches have become so impotent to call out the political corruption and war mongering that the U.S. government now specializes in.   Jesus Christ physically attacked the money changers.  Those same money changers are behind most of what ails this world, and yet we don't even hear mild criticism from most churches...    afraid of losing their precious tax break?   somehow I can't see Jesus shutting his mouth for a tax break from uncle sam.

Thu, 12/29/2011 - 12:39 | 2019419 SamAdams1234
SamAdams1234's picture

Every empty strip mall has a tax-exempt church and minister with assistants.

Pass the plate.

Thu, 12/29/2011 - 14:58 | 2019910 NotApplicable
NotApplicable's picture

So, then without the IRS, there would be far fewer strip-malls in the US?

Hmmmm.... this may be a campaign that the "activist" crowd can get behind.

*runs off to alert OWS*

Well, damn. Wouldn't you know it, they're a 501(c)(3) org now looking for rental space all over the country.

I don't care if it rains or freezes,

as long as I can occupy next door to Jesus

Sittin' in this strip-mall full of cars!


GM's next door, busy channel stuffing.

So there's no place to park, 'cept in front of this dumptser.

Thanks to the IRS, we shall go far.

Thu, 12/29/2011 - 09:28 | 2018786 WALLST8MY8BALL
WALLST8MY8BALL's picture

Just close the Country Kitchen Buffet - that will take care of the AARP

http://www.southparkstudios.com/clips/154174/get-off-the-streets

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