Daily Archives: 31 July 2023

The IRS Refuses

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House Ways and Means Committee chairman Jason Smith (R, MO) and Committee member David Schweikert (R, AZ) are pressing IRS Commissioner David Werfel for information regarding the IRS’ destruction of 30 million tax documents two years ago. They’ve sent a letter to Werfel

asking for the memorandum that explained the recommendation for the “unprocessed, paper-filed informational returns.”

Schweikert told Just the News‘ The Center Square

[W]e’ve never been able to get a satisfactory answer from the IRS of why this was done was done, and is that policy that allowed it to happen? Is there a way to make sure this never happens again?

The IRS is being its usual uncooperative self, though:

The committee is looking for the memo by August 8, but the tax agency has not complied with previous requests for additional information. For example, the committee asked for the memo on May 17, 2022, but the IRS said on May 18, 2022, it would be too risky and declined to provide it, according to the letter.

The IRS isn’t the only Federal agency that refuses to cooperate. The DoJ is famous for its uncooperativeness, and so are State and DoD. There are others. DoJ is especially egregious because it just as routinely refuses to enforce Congressional subpoenas.

There is another way for Congress to get cooperation, or at least to sanction the agencies refusing to cooperate. Congress can apply the Holman Rule to reduce, even eliminate, the salaries of individual Federal employees who refuse. Congress can reduce, even eliminate, funding for the agency that refuses, or whose personnel refuse, to cooperate.

Congress should stop dickering over the matter, too. Immediately on first refusal, one of both of the above measures should be undertaken.

That, though, takes more political courage than too many incumbent Congressmen have so far demonstrated.

A Rich Property Transfer Tax

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Chicago, already a heavily taxed city, is looking at increasing the tax it claims on the sale of properties valued at more than $1 million. It’s no tweak, either: the increase would be from the current 0.75% to 2.65%. Even so, it’s projected (more like hoped IMNSHO) to raise $163 million per year. The money ostensibly is to be explicitly earmarked for construction of (and, presumably, conversion of existing structures for) permanent supportive housing units for the homeless.

I have questions.

Chicago—Cook County—is losing population at a high rate.

Cook County lost more population than almost any other county in the nation, with the exception of Los Angeles County, from July 2021 to July 2022, according to U.S. Census Bureau estimates released March 30.
The leading cause of the drop was 94,344 residents who moved out of Cook County during the year, completely driving the county’s population to shrink by 68,314 residents.

With the city undergoing such high net outmigration for greener [sic] regions, who’s going to be buying those rich properties? Not folks in the surrounding counties; those regions are losing population, also, and not into Chicago. No one in his right mind is moving into Cook and surrounding counties. Sales are going to fall off year by year, and the sales that do occur are going to be at increasingly lower prices, reducing the number of million-dollar properties that exist, much less that are up for resale.

I have a downstream question, too. What properties does the city plan to seize for the construction/conversion? What does the city plan to do with the residents who will be displaced by this construction/conversion?