a Multi-Millionaire… as a Tax Snitch
by Simon Black: IRS
to Increase 'Pre-Crime' Enforcement
small town accountant tipped off the IRS that his employer was shorting
the government on taxes. He was rewarded with a big fat check for
$4.5 million (minus a 28% federal tax withholding, of course).
the government thinks this reward is money well spent it represents
22.5% of the $20 million in taxes that were recovered in the case,
which at face value looks like a sound investment.
that the recovered tax was enough to keep the wheels on the bus
going round and round for 2 minutes 18.4 seconds under the US governments
$3.82 trillion budget.
Chuck Grassley, a key sponsor of the 2006 bill that beefed up the
IRS Whistleblower Program, couldnt be happier: It ought
to encourage a lot of other people to squeal, said Grassley
when commenting on the case.
a career politician. He entered the Iowa state legislature in his
mid-20s almost as soon as finishing his university studies and meeting
the age eligibility requirements set by the Iowa Constitution. Now
at age 77 1/2, Grassley has 52-years of experience in spending other
peoples money without ever having worried about earning any
alone. Most of his peers are career politicians with tenures so
lengthy it is as if they are entitled to their position by birthright,
regardless of the destructiveness of their decisions.
like Grassley who have been in the nucleus of power for so long
are exactly the sort of people who are responsible for decades of
mismanagement and horrendous fiscal decision-making. And now, after
running the government into the ground, what is their solution?
against each other. Breed mistrust. Incentivize suspicion. Reward
cannibalistic witch hunts. George Orwell couldnt have scripted
its working. I took a look at Googles web trends to
check the popularity of search terms related to IRS informant.
Since this much publicized whistleblower story broke, the search
has spiked apparently several thousand good citizens out there
are looking to sell each other out.
before that these sorts of measures are not the answer
support fear and paranoia, and additionally provide a strong impetus
to drive out productive citizens who reach their breaking point
and say finally
enough is enough.
pre-crime enforcement, and offshore witch hunts might
produce a few spare nickels here and there in revenue
none addresses the root causes of the American fiscal disaster
namely, (1) out of control spending, and (2) measures which provide
a disincentive to productivity and value creation.
This is because
the fundamental malignancy that has caused so much of the global
economic distortion spending your way to prosperity, borrowing
your way to wealth is still pervasive among the national leadership,
not just in the United States but in the majority of countries around
In a model
where spending enormous amounts of money is held in such high esteem,
the only perceivable solution is to commandeer as much money as
possible from the citizenry
regardless of the consequences
or lack of tangible results.
the rest of the article
April 15, 2011
© 2011 Sovereign Man