President Obama has already enacted amnesty through executive fiat and now, he’s eyeing unilateral tax increases. This comes after a self-described democratic socialist and Vermont Senator, Bernie Sanders called on Obama to raise more than $100 billion in taxes through IRS executive action.
As the ranking minority member on the Senate Budget Committee, Sanders wants executive action if Congress refuses to pass his version of tax reform. Sanders’ letter calls on Obama to close these “tax loopholes:”
— The Check the Box Loophole
— The Hewlett-Packard Loophole
— The Real Estate Investment Trusts Loophole
— The Corporate Inversion Loophole
— The Carried Interest Loophole
— The Valuation Discount Loophole
The problem with Sanders’ request is that is fails to acknowledge the relationship between Congress and Treasury. The department has no more power than Congress delegates to it.
But if Obama can handout work permits, Social Security numbers, and driver’s licenses to millions of illegal aliens, then tax increases would be easy as White House Press Secretary Josh Earnest points out: “Now I don’t want to leave you with the impression that there is some imminent announcement, there is not, at least that I know of. But the president has asked his team to look at the array of executive authorities that are available to him to try to make progress on his goals.”
Those actions, according to the Congressional Budget Office, will raise federal deficits by $8.8 billion over the next ten years. Meanwhile, unconcerned with deficits, Obama wants more tax reporting too – but few are talking about this.
Businesses that purchase more than $600 worth of goods or services from a contractor would have to get that contractor’s Taxpayer Identification Number and check it with the IRS. If it doesn’t check out, the business would have to withhold from 15-percent to 35-percent of the payment, sending it off to the IRS, doubling or tripling the reporting obligations of small businesses.
The timing of Sanders’ letter and Earnest’s response should be a wake-up call to leaders in Congress as this nation fought a revolution, in part, because of taxes levied by a despot.