Government Growth: IRS Hires Hundreds To Chase Wealthy

The only sector during the recession that is growing is the public sector.  How many caught this story yesterday in USA Today?

Average pay $30,000 over private sector

By Dennis Cauchon


The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.

Federal workers are enjoying an extraordinary boom time — in pay and hiring — during a recession that has cost 7.3 million jobs in the private sector.

The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.

When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.

Well it isn’t going to stop anytime soon, and now the IRS is getting into the groove since TurboTax Timmie, Barney and Company have made a priority of chasing down tax evaders who use offshore accounts.  The insanity of giving the IRS $387 million to chase down $13 Trillion in hidden offshore accounts instead of changing the tax code so that the wealthy would actually invest it in our economy is dazzling.  Add to that the brazen audacity of a tax cheat implementing this plan, and one has a recipe for expatriation.

IRS Hires Hundreds For New Wealth Unit

WASHINGTON (Reuters) – A new Internal Revenue Service unit set up to catch rich tax cheats hiding their wealth in complex business entities is rapidly taking shape with the hiring of hundreds of employees.

The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on “the entire web of business entities controlled by a high wealth individual,” IRS Commissioner Doug Shulman told a tax conference this week.

Another IRS official told Reuters “hundreds” of people have already been hired to staff the new unit, including some from within the agency.

“We have drawn top talent within the IRS that have expertise involving wealthy individuals as well as examination of their related entities,” said Mae Lew, an IRS special counsel.

The high-wealth unit is focusing on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals.

While use of sophisticated legal structures can be legal, in other instances they “mask aggressive tax strategies,” Shulman said.

Tax authorities in Japan, Germany and the UK have also created similar units.

The U.S. House of Representatives on Thursday approved a $387 million boost for the IRS for the fiscal year that started October 1, in part to fund the high-wealth unit. The Senate is expected to vote on the measure on Sunday. (emphasis mine)

I think I may have mentioned the fact that these Sunday votes were going to become regular occurrences since the Democrats have to push through as much legislation as possible before we start firing them in 2010.


The IRS is also opening new criminal offices in Beijing, Panama City and Sydney to focus on funds flowing out of Europe and into Asia, in part because of a heightened focus on international enforcement in Europe.

The goal is to get those up and running during this fiscal year, which ends September 30, according to Barry Shott, IRS deputy commissioner for international issues for large and midsized business.

At the center of the agency’s offshore effort is its legal cases against Swiss banking giant UBS AG. UBS agreed to turn over nearly 5,000 names of individual American clients and paid $780 million to settle a criminal case for aiding tax evasion.

Oh Lord Save Us!: Neil Abercrombie Resigns To Run For Hawaii Governor

Oh Lord Save Us!: Neil Abercrombie Resigns To Run For Hawaii Governor

Neil AbercrombieI live “behind enemy lines” on the Big Island, Hawaii, and that is the main reason for using a moniker instead of my given name.  Hawaii’s legislature is predominantly democrat as is the majority of the population.  To give readers an idea of the nature of the democrat strangle-hold on these islands, the Senate has 25 seats of which 2 are republicans.  The House has 51 seats of which 6 are republicans.  Republicans hold 8 seats out of 76, and considering the lopsidedness of our legislature, I am continually amazed that Gov. Linda Lingle (R) was elected not once, but twice.

Early yesterday morning, I started compiling data on the 2010 races for the new LM layout coming 1.1.2010.  I decided to start with my own state as I know that our governor cannot run for another term.  I ran across a piece on Wiki that stated Neil Abercrombie was going to be running for governor, and lo and behold, a few hours later his resignation hits the newswire forcing a special election costing millions of dollars to a state already swimming in the deep end of the red pool.  Truth be told, the reality of a democrat being elected as governor with the legislature we currently have had me on the verge of tears most of yesterday.  Hawaii Free Press has the run down on Abercrombie’s corruption, but I digress.

This leaves a US House seat open, and a republican actually has a shot at it due to the expected low voter turnout.  Let’s get the “firing of Congress” started!

Mufi Chase Neil Abercrombie Out Of Congress

Today’s surprise Congressional resignation announcement by Neil Abercrombie sets up a low turnout, no primary three-way race between Charles Djou, Ed Case, and Colleen Hanabusa.  Such an election will be won by whoever has the best Get-Out-The-Vote effort.  As an Abercrombie bonus: The Election Commission is in disarray.

Democrats are split with Mufi and Hanabusa on one team with Dan Inouye and the old boys and Abercrombie and Ed Case on the other team with the Hokulia shake down crew and the anti-Superferry protesters.

Abercrombie has handed his ally Ed Case an advantage over Hanabusa in that she will be required to attend to legislative business during the abbreviated campaign and Case has previous experience with the 2003 special election.   On the other hand Case is despised by his own Party after challenging Dan Akaka for US Senate in 2006.  With two hogtied Democrat frontrunners, the advantage shifts to Honolulu Councilman Charles Djou.

djoucharlesAfter all the trouble we have had with this administration and congress full of lawyers, Djou’s education is a bit unnerving (from his campaign website), but he is definitely better than the other two choices, and I will be working to get him elected if just to put a thorn in Nancy, Daniel Akaka, Daniel Inouye, and Mazie Hirono’s sides.

Charles graduated from Punahou School and earned both a B.A. in Political Science and a B.S. in Economics from the University of Pennsylvania, Wharton School of Finance and Commerce, graduating magna cum laude with distinction. Charles earned his law degree from the University of Southern California law school.

Someone needs to explain to the NRCC that picking up this seat is not going to be a walk in the park.  Hawaii is a royal blue state that voted for Obama because he was a local boy.  The good news is that Djou is beating Case 2-1 on campaign contributions, and has an even larger margin against Hanabusa, and is the only candidate not in debt.

Both parties prepare for special election for Abercrombie seat

“Especially as independent voters are feeling alienated by the Democrat(ic) Party and trending toward the Republican Party, this is a prime opportunity for us to pick up a seat,” said a spokeswoman for the National Republican Congressional Committee (NRCC), Joanna Burgos.

And then there is DCCC Chairman Chris Van Hollen living in my little pony world.

“On behalf of the Democratic Congressional Campaign Committee, I thank Rep. Abercrombie for his extraordinary leadership and look forward to his help in filling the open seat in Hawaii’s 1st district with a Democrat who shares his commitment to fighting for the best interests of Hawaii’s middle class families,” Van Hollen said.  (Please see link above to Abercrombie’s 2009 corruption.)

Fire Congress!

Let’s Get The Party Started!

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