Skip to main content

Democrats' conundrum with Trump's taxes

Presented by the Information Technology Industry Council (ITI): Delivered every Monday by 10 a.m., Weekly Tax examines the latest news in tax politics and policy.
Dec 05, 2022 View in browser
 
POLITICO's Weekly Tax newsletter logo

By Benjamin Guggenheim

Presented by

the Information Technology Industry Council (ITI)

ABOUT THOSE TRUMP TAXES: Well, House Ways and Means Committee Democrats finally have access to six years of President Donald Trump's tax returns and could publicly release them before the chamber turns Republican on Jan. 3. But that doesn't mean it would be wise for them to do so, as Daniel Hemel of New York University School of Law writes .

The conundrum is this: The committee, led by Rep. Richard Neal (D-Mass.), has maintained throughout the three-and-a-half-year process of trying to obtain the returns that the lawmakers wanted to review the presidential audit program — a Watergate-era procedure that mandates the auditing of the president and vice president's tax returns every year.

That strategy helped Neal win the litigation over Trump's returns, Hemel says. Neal argued in the courts that his request was not politically motivated exposure for the sake of exposure, but rather part and parcel of the committee's efforts to conduct legitimate oversight of the IRS.

However, that line of the argument may hamstring the committee if Democrats want to avoid making it look like they hoodwinked the courts.

Neal — and the "designated agents" that he anointed to review the returns — will need to wade through stacks of paperwork that include not only the Trump returns, but also status reports for any audits of Trump and administrative paper trails associated with each audit.

To scrutinize the efficacy of the presidential audit program, the agents would also have to take a close look, for instance, at how the IRS audited past presidents and whether the agency was less rigorous in Trump's case.

That's all to say that the momentous amount of work to accomplish such a task does not bode well for House Democrats being able to release the Trump taxes in the four weeks they have left in power.

Enter Senate Finance Chair Ron Wyden (D-Ore.). He could request and receive the Trump taxes the very same day and initiate his own review of the presidential audit program that would extend into the next Congress.

Hemel argues that would be the wiser course of action if Democrats want to preserve the integrity of their request.

Time will tell.

HOLD YOUR HORSES: But first, let's applaud the U.S. Men's National Team, which, despite a valiant effort in the knockout round of the World Cup, lost to Netherlands 3-1 on Saturday.

Kick some tax news our way (or tips or feedback).

Email: bbecker@politico.com , bfaler@politico.com , bguggenheim@politico.com and teckert@politico.com . You can also reach us on Twitter at @berniebecker3 , @tobyeckert , @brian_faler , @ben_guggenheim , @POLITICOPro and @Morning_Tax .

Want to receive this newsletter every weekday? Subscribe to POLITICO Pro . You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories.

 

A message from the Information Technology Industry Council (ITI):

Research and development are at the heart of American ingenuity. For nearly 70 years, the U.S. has invested in current and future innovations, creating high paying jobs in communities across the country. Today, those jobs and U.S. growth are at risk unless Congress acts. Learn more.

 

THREATS TO THE IRS: If you haven't been living under a rock (i.e. don't have a subscription to Morning Tax), you've noticed that fiery political rhetoric from Republicans about the IRS has escalated in the past few months.

Chief among the invectives is that the agency will use its $80 billion windfall to hire 87,000 new agents who will subject everyday taxpayers to audits that will increase by orders of magnitude. (It's worth noting that the 87,000 figure doesn't account for tens of thousands of agents set to retire in the next few years, and Democrats have said the new money will go towards scrutinizing mostly wealthy tax cheats.)

But has the heated rhetoric — which has at times included false conspiracies that there would be armed agents targeting small businesses—contributed to an uptick in threats against the agency?

Data obtained by Morning Tax through a Freedom of Information Act request suggest that the jury is out on that question.

Of threats directed against IRS employees from outsiders, there were 225 in 2018, 237 in 2019, 323 in 2020, 316 in 2021, and 207 from the beginning of 2022 through Nov. 4, the date that Morning Tax submitted its FOIA.

In addition, there were other types of threats categorized separately by the Treasury Inspector General of Tax Administration. In 2022, there have been at least 15 physical assaults against IRS employees; 32 instances of corrupt interference and harassment; 13 bomb threats; 2 instances of a suspected bomb; and 2 instances of a confirmed harmful biological or chemical substance.

In 2021, TIGTA confirmed a bomb or incendiary device that was actively deployed against the agency.

That's all to say that the IRS is accustomed to dealing with a not-insubstantial level of threats every year. But according to interviews with IRS employees, the rhetoric hasn't helped, especially when it comes to revenue officers whose job it is to go out in the field and collect assets owed to the agency.

"It's just general consensus that people don't like us," said Tim Ronholm, a revenue officer and president of a Minnesota chapter of the National Treasury Employees Union (NTEU). "Just suggesting that the IRS employees are a threat and dangerous doesn't make our job any easier. We're an easy target to pick on," he added.

Ronholm said he often goes knocking door-to-door without any backup knowing that taxpayers aren't necessarily going to be happy to see him. A colleague once had a gun pulled on him, he said.

Out of those same safety concerns, Lorie McCann, the president of a Chicago chapter of the NTEU, said she advises employees to be cautious about wearing badges and vests that identify them as IRS employees or posting about their job on the internet.

McCann said she was excited at first about the new funding because it would mean the agency would get "much needed help," but was later discouraged by false claims of armed IRS agents that followed the August passage of the Inflation Reduction Act.

"The rhetoric which puts employees potentially in danger is so disheartening," McCann said.

Bennet on the CTC: In other news, Sen. Michael Bennet (D-Colo.) sat down with our Ryan Lizza on Friday to discuss , among other things, the potential inclusion of an enhanced child tax credit in an omnibus spending bill.

It's no secret that a progressive group including Bennet has said that there shouldn't be any movement on research and development tax relief for business without a restoring of the beefed-up CTC. But what did catch our attention is that the senator indicated he would be willing to accept some tweaks to the credit to achieve a bipartisan compromise.

"I have always believed that in the end this would be bipartisan, that it wouldn't be just the way I designed, that Republicans would make some changes to it," Bennet said.

That's in seeming contrast to what Sherrod Brown (D-Ohio) told Morning Tax last week, which is that he's pushing for the American Rescue Plan CTC and doesn't want to settle for something less substantial.

Interestingly, Bennet said some Republicans have expressed an interest in supporting a bipartisan CTC but that those colleagues had not yet made that interest public.

The Colorado lawmaker also mentioned Sen. Mitt Romney (R-Utah) as "an incredible partner" in the effort.

Romney in June unveiled a plan called the Family Security Act that would give families $350 a month per young child and $250 a month per school-aged child, and he has spoken with progressives several times on a potential bipartisan deal.

But there remain significant differences between the two proposals, with Romney insisting that there should be a minimum income threshold for families to receive the full benefit and that the program should be funded by a repeal of the state and local tax deduction — a no-go for many Democrats.

 

JOIN WEDNESDAY FOR A POLITICO DISCUSSION ON THE NEW TRAVEL EXPERIENCE : Americans are now traveling in record numbers — but the travel experience has changed drastically in recent years, not always for the better. What lessons can we learn from the pandemic and different responses around the globe? And in the face of a possible recession, what will help the travel industry remain vibrant and deliver jobs? Join POLITICO on Dec. 7 for "The Travel Experience Redefined" to discuss these questions and more. Breakfast and coffee will be provided. REGISTER HERE .

 
 
Around the World

BBC: " Oil giant TotalEnergies to cut North sea investment over windfall tax "

Economist: " Developing countries take tax talks to the UN "

Reuters: " Explainer: Why the U.S. Inflation Reduction Act has Europe up in arms "

 

A message from the Information Technology Industry Council (ITI):

Advertisement Image

 
Around the Nation

POLITICO: " Unindicted Trump looms large over closings in company's New York tax fraud trial "

CBS: " Taxpayers can expect 'refund shock' when they file 2022 tax returns "

Forbes: " Does The Child Tax Credit Reduce Child Poverty Or Discourage Work?"

 

POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP .

 
 
Also Worth Your Time

Crain's Chicago Business: " Billionaires are getting their tax bills, too. Here's what they owe."

Tax Notes: " Will the United States Get a Budget Squeeze Like the United Kingdom?"

Did you know?

During the World Cup, you may have seen players lying down behind a defensive wall of players during a free kick.

The reason they do this is to prevent the ball from going below the wall while the rest of the players jump up. Argentine legend Lionel Messi, for instance, has often stunned goalies by sliding the ball deftly underneath the wall and scoring.

 

A message from the Information Technology Industry Council (ITI):

Currently, United States' investments in research and development rank 27th out of 38 developed countries. Congress must act to reverse this harmful trend and support U.S. innovation. If Congress doesn't act, the U.S. could lose out to the dozens of other countries that put a higher value on American ingenuity. Learn more about this critical pro-innovation and pro-jobs policy. Learn more.

 
 

Follow us on Twitter

Toby Eckert @tobyeckert

Bernie Becker @berniebecker3

Brian Faler @brian_faler

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.

Comments

Popular Posts

📄 Liaqat Ali Ali shared Waheed Zaman's post

  See the post that he shared.           Facebook                 📄 Liaqat Ali Ali shared Waheed Zaman 's post. 26 April at 12:09   View               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more      

📄 Sazzad Khan shared Shakil Khan's post

  Ludo, see the post that he shared.           Facebook                 📄 Sazzad Khan shared Shakil Khan 's post. 27 April at 21:42   View               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more      

Afjal Hossain wants to be friends on Facebook

  1 mutual friend - Works at won businass - Atrai, Rājshāhi, Bangladesh - 3,883 friends - 6 photos - 3 groups           Facebook             Afjal Hossain wants to be friends with you on Facebook.   Afjal Hossain Works at won businass · Atrai, Rājshāhi, Bangladesh 1 mutual friend · 3,883 friends · 6 photos · 3 groups               Confirm request     See all requests             This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

DeepMind Gemini AI could rival ChatGPT / Congress restricts ChatGPT use / Unity launches AI marketplace

Plus: C-suite leaders plan to hire due to generative AI Inside AI For June 27, 2023 Thank you to our sponsor Hey Insiders,  Welcome to Inside AI! Here are today's top stories: Google DeepMind is developing a Gemini chatbot to rival ChatGPT. 64% of C-suite leaders say they plan to increase hiring due to generative AI. U.S. House members were instructed to limit ChatGPT usage to the paid version. Scroll down for some quick hits, and then let us know what other content you'd like to see in future issues!  Beth p/beth-duckett 1 Google DeepMind, its AI research lab, is developing a new chatbot called Gemini that could rival or surpass OpenAI's ChatGPT, according to CEO Demis Hassabis. Gemini, built on the capabilities of DeepMind's AlphaGo AI system, could analyze text, plan, and solve problems, Hassabis told Wired. More: AlphaGo is DeepMind's AI system that defeated a professional human player i...

The $975 million TikTok mystery

Red flags pile up in Khaby Lame’s mega deal. View in browser | Subscribe ...

Breaking News: Dems fall short of flipping deep-red House seat in surprisingly competitive Tennessee special election

Dems fall short of flipping deep-red House seat in surprisingly competitive Tennessee special election Breaking News Alert ...

Start separating your leaves from your trash

Presented by Uber: POLITICO's must-read briefing informing the daily conversation among knowledgeable New Yorkers May 31, 2023 View in browser   By Danielle Muoio Dunn and Zachary Schermele Presented by ...

Meta removes disinformation campaigns / Google Maps disables features in Ukraine / NIO seeks HK listing

Plus: OnePlus's upcoming phone can fully charge in 15 minutes. Inside.com Part of   Network February 28, 2022 Presented by Facebook parent company Meta said it took down two disinformation campaigns that targeted Ukraine and were spreading anti-Ukrainian propaganda. Russia-linked hacking group Ghostwriter, which perpetrated one of the campaigns, gained access to real Facebook accounts and posted YouTube videos "portraying Ukrainian troops as weak and surrendering to Russia," according to Meta. The company said it blocked phishing domains that Ghostwriter used to gain access to the accounts and beefed up security. More: Meta described the second disinformation campaign as "coordinated inauthentic behavior" made up of about 40 accounts, pages, and groups on Facebook and Instagram.  The campaign ran several websites disguised as independent...

The 2021 Holiday Magic Gift Guide + $610 in free gifts

The response to our Black Friday Sale  has already been overwhelming (over $600 in free magic), but I've gotten a ton of emails asking my advice on what to buy. So here's a list of my personal hand-picked recommendations . Whether you're buying these for yourself or someone else, they're all excellent, and get my highest recommendations. The 2021 Penguin Magic Holiday Gift Guide (organized by category) Gingerbread Playing Cards: A very limited 2021 edition holiday deck of playing cards. Free with every order o...

Only 12 hours left to get over $600 in free magic. Black Friday ends at midnight!

At midnight tonight, our Black Friday sale disappears! For the next 12 hours, every order gets a free trick , STAB by Luke Jermay , an incredible display of skill you need to know....

Popular Posts

📄 Liaqat Ali Ali shared Waheed Zaman's post

  See the post that he shared.           Facebook                 📄 Liaqat Ali Ali shared Waheed Zaman 's post. 26 April at 12:09   View               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more      

📄 Sazzad Khan shared Shakil Khan's post

  Ludo, see the post that he shared.           Facebook                 📄 Sazzad Khan shared Shakil Khan 's post. 27 April at 21:42   View               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more      

Afjal Hossain wants to be friends on Facebook

  1 mutual friend - Works at won businass - Atrai, Rājshāhi, Bangladesh - 3,883 friends - 6 photos - 3 groups           Facebook             Afjal Hossain wants to be friends with you on Facebook.   Afjal Hossain Works at won businass · Atrai, Rājshāhi, Bangladesh 1 mutual friend · 3,883 friends · 6 photos · 3 groups               Confirm request     See all requests             This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

DeepMind Gemini AI could rival ChatGPT / Congress restricts ChatGPT use / Unity launches AI marketplace

Plus: C-suite leaders plan to hire due to generative AI Inside AI For June 27, 2023 Thank you to our sponsor Hey Insiders,  Welcome to Inside AI! Here are today's top stories: Google DeepMind is developing a Gemini chatbot to rival ChatGPT. 64% of C-suite leaders say they plan to increase hiring due to generative AI. U.S. House members were instructed to limit ChatGPT usage to the paid version. Scroll down for some quick hits, and then let us know what other content you'd like to see in future issues!  Beth p/beth-duckett 1 Google DeepMind, its AI research lab, is developing a new chatbot called Gemini that could rival or surpass OpenAI's ChatGPT, according to CEO Demis Hassabis. Gemini, built on the capabilities of DeepMind's AlphaGo AI system, could analyze text, plan, and solve problems, Hassabis told Wired. More: AlphaGo is DeepMind's AI system that defeated a professional human player i...

The $975 million TikTok mystery

Red flags pile up in Khaby Lame’s mega deal. View in browser | Subscribe ...

Breaking News: Dems fall short of flipping deep-red House seat in surprisingly competitive Tennessee special election

Dems fall short of flipping deep-red House seat in surprisingly competitive Tennessee special election Breaking News Alert ...

Start separating your leaves from your trash

Presented by Uber: POLITICO's must-read briefing informing the daily conversation among knowledgeable New Yorkers May 31, 2023 View in browser   By Danielle Muoio Dunn and Zachary Schermele Presented by ...

Meta removes disinformation campaigns / Google Maps disables features in Ukraine / NIO seeks HK listing

Plus: OnePlus's upcoming phone can fully charge in 15 minutes. Inside.com Part of   Network February 28, 2022 Presented by Facebook parent company Meta said it took down two disinformation campaigns that targeted Ukraine and were spreading anti-Ukrainian propaganda. Russia-linked hacking group Ghostwriter, which perpetrated one of the campaigns, gained access to real Facebook accounts and posted YouTube videos "portraying Ukrainian troops as weak and surrendering to Russia," according to Meta. The company said it blocked phishing domains that Ghostwriter used to gain access to the accounts and beefed up security. More: Meta described the second disinformation campaign as "coordinated inauthentic behavior" made up of about 40 accounts, pages, and groups on Facebook and Instagram.  The campaign ran several websites disguised as independent...

The 2021 Holiday Magic Gift Guide + $610 in free gifts

The response to our Black Friday Sale  has already been overwhelming (over $600 in free magic), but I've gotten a ton of emails asking my advice on what to buy. So here's a list of my personal hand-picked recommendations . Whether you're buying these for yourself or someone else, they're all excellent, and get my highest recommendations. The 2021 Penguin Magic Holiday Gift Guide (organized by category) Gingerbread Playing Cards: A very limited 2021 edition holiday deck of playing cards. Free with every order o...

Only 12 hours left to get over $600 in free magic. Black Friday ends at midnight!

At midnight tonight, our Black Friday sale disappears! For the next 12 hours, every order gets a free trick , STAB by Luke Jermay , an incredible display of skill you need to know....

Archive

Show more

Bottom Widget

Bottom Widget

font.css

videocontrol.css

GitFootCSS

BottomEdge Widget Title

Copyright © 2023 IdiotMail