Gasoline Taxes – The Epitome of Forced Taxation and Government’s Broken Promises

Exclamation MarkI do not care that Alaska has not increased its gasoline taxes in 50-years.  Frankly, the fact that the Federal Government has gone 27.4 years without increasing the Federal Fuel Taxes is not a problem.  Nor that the Federal Government has to either get the current taxes renewed, or the Federal Gas Tax goes to $0.042 a gallon is not a tragedy, but a good thing.  Gas taxes are not the problem; the problem is that the fuel taxes, excise taxes, surcharges, and fees built into a gallon of gas that equals more than $1.00 per gallon, are never prioritized to the infrastructure projects the tax was collected initially to pay for!

IronyI find the following ironic; the Federal Gasoline Excise Tax is actually two taxes combined.  $0.01 per gallon is paid as the Leaking Underground Storage Tank (LUST) fee.  Why is this ironic; because the government LUSTs after all types of money to misappropriate.  Before creating acronyms, one would think that the government would consider how much of a joke those acronyms will make.  One of the seven deadly sins that are constantly causing scandals for politicians, LUST!  Yes, I find this tax acronym very ironic and applicable to the discussion on why the roads and other infrastructure is rated as a C- and falling.  I find LUST very appropriate to the discussion on the misappropriation of funds and how the government wants to increase taxes to pay for something already well funded but where the money is consistently diverted.

QuestionPlease note that each state will have additional taxes, fees, surcharges, and tax projects built into the cost of a gallon of gas or diesel, aviation, or propane.  Fuel taxes are a tax scheme that seems to always pay for anything but roads, bridges, and infrastructure.  Some basic facts regarding gas taxes:

      1. The average state gas tax is $0.3006 per gallon of gas.
      2. The Federal Government gets $0.184 per gallon of gas.
      3. States have added other fees to a gallon of gas, including:
          • Environmental
          • Underground storage (payable even if the tanks are above ground)
          • Inspection fees
          • Certification and other weights and measurement fees
      4. If your state taxes Ethanol, your gas taxes include the Ethanol tax, as well as a fuel tax.
      5. All fuels are hit with taxes, and some of those taxes are disproportionately assigned to heavier vehicles. For example, diesel has a different formula for taxes due to the trucking industry using roads and bridges more; at least, this is the excuse used to tax diesel differently.

Gas Tax Revenue – Poor Roads and Infrastructure

Since I was a kid in Maine, who closely observed the gas tax debate, I have wondered the same question.  “Why are the roads so poor if the government is collecting all these taxes on gasoline?”  Now, keep in mind the words of Justice Oliver Wendell Holmes Jr. “Taxes are the price of civilization.”  Meaning that to “enjoy” the pleasure of a free society, the government will levy taxes.  But, the money collected does not have to go for what the tax was intended to pay.  Hence the broken promises of gasoline taxes.

Plato 2Fuel taxes are used for a myriad of uses, and the priority is all confused about how to spend fuel taxes:

        1. Schools
        2. Pay down the National Debt
        3. Mass Transit
        4. Cleaning up underground fuel leaks
        5. Law Enforcement
        6. Environmental Protection
        7. Pension Shortfalls
        8. State Debts
        9. Federal Highway Trust Fund Deficits of all types
        10. Enforcement Costs, including weights and measurement certification
        11. Roads
        12. Bridges

Now, do not forget the other obstacle in fixing roads and bridges, the labor costs, especially if the workers are unionized.  The government bidding processes for projects, especially in all forms of construction, are obscenely complicated, which increases costs long before a shovel hits the dirt.  If unions are involved, the time for the project and expenses will, at a minimum, double before the project completes, creating deficit spending.  I am not cynical here; I have witnessed this occur too often not to admit the truth.

Working DollarChris LeDoux sings a song, “Working Man’s Dollar,” which tells the story and details the difference between a working man’s dollar and the dollar in other places.  The fuel tax was first adopted in Oregon, and the proceeds were earmarked only for fixing, maintaining, and building roads, bridges, and other travel infrastructures, like tunnels.  Except, the money never is prioritized to the failing roads, bridges, and infrastructure costs.  The working man’s dollar, collected through forced taxation, is not respected by the government authorized through the ballot box to allocate spending.

I was in Maricopa County when a stadium was pitched to the residents to be located in Scottsdale.  A gas tax hike was proposed as part of an overall tax plan to pay for the stadium.  I asked, “If the stadium was worth the investment, why not just sell bonds?”  I never got an answer.  Not every citizen was interested in the stadium, not all citizens were going to benefit from the stadium, but every citizen was being asked to help pay for a stadium.  The stadium in that election failed, but the ideas did not die; a new location was proposed, and the voters there accepted the stadium’s tax hikes.  Want a surprising non-surprise, the stadium is built, but the taxes have never gone away, including property, sales, and fuel taxes!  Where is that money going?

Bait & SwitchNow, the Federal Government has a bunch of fuel taxes and surcharges (taxes called a fee) about to expire.  The question every voter in America needs to ask themselves is this, “Did the government properly use the funds dedicated to infrastructure?”  If so, then the fuel taxes should continue at the Federal level.  If not, then the fuel taxes should cease, for the government refuses to spend money according to the purpose it was collected.  Every single state in the union should be asking the same question and answering accordingly.

I lived in Albuquerque, NM., for several years.  To get potholes fixed, you had to ruin your car in an accident involving the street, then sue the city, county, state, whatever for the insurance costs.  Only then was that particular patch of road deemed important enough to repair.  There are bone-jarring, teeth-rattling, car-destroying potholes all over Albuquerque.  These never get fixed because the city has been too busy dumping tax money into a rapid transit project that is barely used, overly expensive, and desperately not desired by the taxpaying citizens.  They had “ART” (Albuquerque Rapid Transit) crammed down their throats by a judge.  ART has been a disgrace from Day 1.  Yet, money keeps pouring into ART instead of the many roads, bridges, overpasses, and other infrastructure that desperately needs repair.  A friend of mine hit a pothole, doing 35mph, dented his rim almost 2”, ruined his front alignment, and cost him a considerable sum.  That pothole is still there, still causing dents, still eating tires, and the city cannot fix it, the state will not fix it, the county was supposed to fix it, the Indian reservation owns it, and the federal government makes the pothole worse every day by traffic of federal employees going to work.

Tax BurdenHence the reason why fuel taxes are considered a tax scheme!  If you pass the buck enough, nothing gets done, and the money collected can be used in other projects while responsibility is determined.  Except, there is no money to fix the problem when the responsibility is determined, and the wheel just keeps spinning around.  Are you sick and tired of the games politicians play, yet?  Now, imagine your electric bill going up to pay for the fuel taxes not paid for by electric car owners, and tell me about proper government action and accountability.  My friend could not sue because responsibility cannot be determined; his insurance would not pay for the damages because the road damaged his vehicle; guess who was out almost $10,000.

Tax Scheme 2Some states are changing how the gasoline and other fuel taxes, including electricity due to the rise in electric vehicles on the road, are being priced and collected.  However, the problem is not the tax; it’s the fact that the tax never pays for what it was intended to when collected.  Some states got an increase in fuel taxes through their state legislatures this year.  Other states and the Federal Government are taking fuel taxes up in the coming months or the next legislating session.  But, not a single politician, anywhere in America, has stepped up to state the obvious, the current taxes collected are sufficient to pay for roads and bridges; we have to allocate more of the current money collected to roads and bridges.

Broken Promises – Broken Roads and Bridges

Question 3Is the problem apparent?  How many of your state taxes, lotteries, and other fees are supposed to pay for education?  Yet, education always seems never to have enough money.  How many taxes and fees go into the Department of Motor Vehicles and Department of Transportation, all of which are supposed to pay for infrastructure, e.g., roads, tunnels, bridges, overpasses, highways, etc.?  How much is the pension crisis costing your state, driving taxes and fees upwards, but the money never is delivered to pay down and lessen the pension crisis?

I repeat, only for emphasis, “America does NOT have a cash collection problem; it has a spending problem.”  At all levels of government, the elected officials are acting worse than drunken sailors on a seven-day binge, and this behavior needs to cease!  We cannot spend our way out of the hole dug through deficit spending!  The answer is not allowing the government to steal more money from our pockets, but to demand the money taken is used for the purposes intended!

Tax SchemeWe must tie political decisions to misappropriate funds to the legislators and executives making the decisions.  Thus, holding accountable the people who are being poor managers of the people’s money.  More importantly, when re-election decisions are made, the media, the influencers, and the political parties need to report this information.  Being able to hide funding shenanigans and criminal activities should never occur; businesses cannot do this, the government should not be able to do this.  Audits, investigations, and transparency are critical to putting the right people out of office and into prison, and keeping the honest and faithful stewards in office and working.

Knowledge Check!The size of government must shrink to an affordable level, from the city to the Federal; every government body in America, including those non-Government agencies acting like government agencies (USPS), need to be forced onto a diet of less money!  There is no excuse for the government to be the size it has become.  There is no excuse why we, the owners of the government, cannot demand government shrink, become efficient, and keep the promises made regarding money collected, used appropriately, and ended at the time promised.

Angry Wet ChickenAs sure as carts to horses and ducks to water, a Federal tax, fee, or surcharge, will be found shortly on your electric bill to cover the costs of electric vehicles on the roads.  When the Federal government does this, the state, county, and city will jump in with both feet, claiming “fairness” and “equality” so everyone is “paying their fair share” of the costs for infrastructure.  It doesn’t matter that you do not own an electric vehicle; the government will help you finance one through increased taxes and misappropriated fees collected.  Just like the “Obama Phone” scheme being abused by many people and paid for by a small minority.  Broken promises indeed!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

$1.8 Trillion Annual Deficit – The Problems with Biden’s Budget

Angry Grizzly BearWith gratitude to the National Conference of State Legislatures (NCSL), their analysis of the proposed budget was broken down, and some sense was made.  Not that the news is logical, acceptable, or palatable, just that the budget documents were broken down, which was helpful.  We start with the most bass-ackwards aspect of the budget by asking one question, “Where is the money supposed to come from?”

The 2022 Budget Proposal left President Biden’s desk requesting Congress to spend $6 Trillion and add $1.8 Trillion in new deficit spending to the bloated debt the government already owes.  “Who is going to buy the bonds and make money on this debt?”  When a person employs a search engine, asking this exact question, many answers come forward, and some do not make any sense.

Peter Schiff stated:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Thus the first problem with America’s debt and proposed budget transparent; there is no money that government can spend unless it first forcefully removes it from the owner.  That is theft, or as we recently discussed, legalized theft.  The Supreme Court of the United States (SCOTUS) has ruled that legalized plunder, legal theft, or forced taxation are the price we pay for civilization, thus making legal the government’s actions to steal money.Government Largess

Let me be clear; I am not an economist.  I select several very bright and experienced people to help explain things to me.  However, I can help others with less interest in economics understand what is happening in America right now to answer the question put forward, “Who is buying America’s debt instruments?”  The simple answer is that the Federal Treasury is buying the debt instruments, as the whole world sells their bonds and other American debt instruments.  What the Federal Reserve is doing is called “monetizing debt.”

Monetizing Debt

Gravy Train 3The definition of monetized debt is as follows. “Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to the private sector or raising taxes. It is often informally and pejoratively called printing money or money creation.”  Money can only be created in two ways: selling products and services and lending money where the borrower pays interest.  While there are many different debt instruments, i.e., credit card, home loan, student loan, bonds, Treasury Notes, etc., the principle remains the same: you either sell goods and services to make money or lend money and make money on the interest.

Why does monetizing debt matter?

Two simple reasons the government allows debt to be monetized.  To hide debt, it doesn’t want the public to know about, and to absorb cash on the market as a tool to fight inflation.  Here’s the problem, there is too much debt on the government’s books to hide it from the public any longer.  Add to that the sheer volumes of cash in the marketplace after handing out money during COVID, and the Federal Reserve will monetize debt.  Even if the chair of the Federal Reserve denies monetizing debt, debt is being monetized.Burning money - THE JOSIAH BARTLETT CENTER FOR PUBLIC POLICY

In short terms, your pocketbook is going to take another hit on the chin, and possibly two.  First, your interest rate on privately held debt, credit cards, student loans, homes, etc., is going to go up, all while making lenders nervous and refuse to lend money.  Second, inflation is already making the dollars held less valuable.

Inflation first; inflation is the devaluation of dollars.  The government floods the marketplace with cash, and the currency you hold will drop in value.  For example, recently the inflation was reported to have been 4.6% higher year-over-year.  This announcement was made in April 2021, so all the money you earned last year suddenly became 4.6% less valuable this year, all before the interest rate increases affected those dollars.Inflation - 8 Things Everyone Ought To Know.

Case in point, the US Government sent me $1000 in January; I held onto those funds due to a move that was coming and spent the money in June.  However, between January and June, inflation moved up at a steady pace, and when I went to spend that $1000, it was only worth $850.  That is the power of inflation in your pocket.

Have you asked for a credit increase recently and been denied?  What about your credit limits on your credit cards, have they shrunk?  Both are indicators that the lenders refuse to lend due to the tremendous risks caused by fiscal insanity in the Federal Government.  What about home loans, have you had to produce more documentation, prove more income, and work harder to qualify for a loan?  What about student debt?  The government controls the lending of student debt.  Even here, the Federal Government cannot demand a lender loan money to student’s and many students have found their college expenses grow, and their ability to borrow shrunk.Inflation pickpocket | Cayman Compass

In a simple fact of life, every household in America understands perfectly. When your credit scores go down, your ability to borrow reduces, and it becomes harder to meet all your bills every month.  Every city, county, state, and even the Federal Government should know this lesson, but they refuse to believe problems arise when credit scores go down.  All because those elected believe they can tax some more, and the money magically appears.

Does money magically appear in your pocket; of course not!  It must be earned through working, selling goods and services, or trading your time for employment with an employer for a paycheck.  Does the law allow you to write blank checks, kite checks, backdate checks, or simply float a check waiting for a future payday; of course not!  Yet, this is what the government is doing right now with your money.  The government is spending money, promising the lenders that a future payday will be theirs, but the government has to spend money to get money.  Does that excuse work for you when the electric company, gas company, cellphone, and other bills arrive?A Helpful Chart : How Inflation Changes Mortgage Rates

The most heartbreaking statement I have heard in a long time was recently made by a physician’s assistant, who claimed, “Aren’t we all just one paycheck from disaster?”  The simple truth, mostly, yes!  Studies exist that talk about financial resiliency in America.  Financial resiliency is all about being able to weather a patch of trouble without losing your possessions in bankruptcy.  The conclusions were all but unanimous. Along with most industrial nations, America has no financial resiliency due to government fiscal policies that hinder saving money and the need to live on credit cards to keep the basics of life paid for each month.

When inflation is stealing the value of your money, no wage can compete with government theft, all before taxes.  Add in tax laws that are counter-productive, job-killing, and increase the cost of doing business, and the job you have becomes tenuous at best.  Add in the hidden debts the government is trying to hide, and nobody in America is making money.

QuestionWhat about those who consider themselves “Rich?”

The same problems you are having with inflation are the same problems everyone is having with inflation.  Let’s go back to my $1000 that became $850 through six months of inflation.  We all spend the same money, and inflation is killing everyone’s dollar equally!  Hence, I beg you, do not allow the media hype about rich versus poor to derail the point.  Inflation and monetized debt are killing the US Dollar, which is why so many foreign investors have dumped their US Debt instruments for safer financial shores.

While some people have more financial resiliency than others, everyone’s dollar is dropping in value.  Inflation and low financial resiliency mean making budget cuts to charities, hiring someone to maintain a lawn, and a host of other ways and means American’s share our money.  It can mean turning off services, weighing how much fuel can be used, and a host of other belt-tightening decisions.  All things the government should first be doing, and they refuse.24+ Inspirational Quotes For Unemployed - Audi Quote

Yours and my liberty and freedoms depend upon stable economic policy, firm fiscal policies, and elected officials scrutinizing the government for waste, fraud, and abuse.  Yet, what do we regularly find; fraud, waste, and abuse!  The Department of Defense has lost multiple trillions of dollars; not a single politician is asking for an audit and an explanation or is willing to withhold additional appropriations until the lost money is accounted for.  The Department of Veterans Affairs continues to mismanage funds, misappropriate funds, and waste money like overripe fruit; yet, still, we have zero interest from the politicians elected to scrutinize government.

I repeat Peter Schiff, only for emphasis:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Inflation Quotes | Inflation Sayings | Inflation Picture Quotes - Page 2In redistributing your money, the government has proven they are the problem, and the solution begins locally!  Change your mayor, city council, county board, school boards, and every other elected official.  Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity.  Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.

Knowledge Check!The budget put forth by President Biden is the height of insane, and I have only covered less than 1/10th of the budget problems in this article.  Granted, I covered the most egregious problem, but the fact that the legislative branch is even negotiating a compromise is beyond insanity and borders on criminal negligence!  We, each citizen of a representative government, must stand and tell our representatives NO MORE!  No more fiscal insanity, borrowing to buy votes, entering into debt obligations that make captives of unborn millions of other people.  No more will we allow them to buy votes to maintain power.  End the financial abuse of the taxpayer; your wallet will thank you!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Did you hear? The IRS Edition

Millstone of Designed IncompetenceFLASH:  20 May 2021, President Biden wants to spend $80 Billion on expanding the workforce of the IRS by 87,000 new employees over 10-years.  Riddle me this, $919,540.23 is the approximate amount per employee; Would someone tell me why the IRS needs to spend so much per employee?  Does this announcement seem particularly worrisome?  If not, please cease reading now, as I will never convince you to be wary of the Department of Internal Revenue Service. However, with its incredible price tag, if this announcement worries you, let’s discuss a few topics an expanded IRS means.

Where is the money to expand the IRS coming from?

Simple question.  I want clear and concise answers.  While President Biden thinks some of those funds will come from “catching tax cheats,” cheating taxes is a game for lawyers, and I want to know what the president means by “Tax Cheats.”  For example, will he further chase the rich people who are not paying their “fair share;” if so, when will Biden and Obama belly up and write a check for all the back taxes they owe?  When will the Clinton Machine be forced to become accountable for all the tax money avoided?  Are “tax cheats” regular people who missed a box, forgot to include some income, or cannot fathom how to fill out their taxes and made honest mistakes?IRS

Until Big-Tech did an excellent job of cleaning OIG reports for the IRS, I used to have an OIG report claiming that the Federal Employees owing the most in back taxes was the IRS.  Are they in the “Tax Cheat” category, or will the IRS employees continue to be exempt from audits and “fair share” taxpaying because the agency is overwhelming voting Democrat in every election?  The more I dig into the IRS; the more questions arise about “fairness,” transparency, accountability, and responsibility.

Politicized or unpoliticized, the IRS is a weapon.

Ziggy - IRS Non SequiturThere is a massive problem in the IRS; the “IRS Targeting Controversy” has never been settled at the IRS.  On 09 Feb 2018, the last non-profit targeting case was settled. The plaintiff sees no remuneration for the legal fees. The government had to admit it was wrong to target non-profits based upon political leanings.  The IRS is hoping lawmakers will see this last settlement and give them a break.  Yet, the core problems of being or not being a political weapon, the core complaint of the scandal, was never addressed!  The leadership in Congress stopped scrutinizing, and the IRS got away with browbeating people based upon political leaning.

Never forget, Lois Lerner, the IRS official at the center of the non-profit targeting scandal, who had contact with the U.S. President (Obama), pled the Fifth Amendment, and none of the elected officials did anything to get to the truth!  I will not allow the elected representatives off the hook to enable the IRS to become a weapon or remain a political animal!  America deserves better and can only obtain better through asking questions and demanding concise and truthful answers after transparent audits and investigations that conclude with punishment for wrongdoing!

Non-Sequitur - GovernmentThis leads to a simple question: Is the IRS a political weapon for Democrats and Liberals, or is it an apolitical unit of the government?  Let us test the current IRS leadership for a potential answer to this question.  17 June 2021, The Daily Signal reports that the IRS denied tax exemption to a Christian Group because the Bible the group adheres to is associated with the GOP (Republicans).  If that decision has you scratching your head, wait until you check out the rest of the story.

From The Daily Signal story, we find the following pretzel logic from the IRS.  The link is live; see the letter for yourself!

In an 18 May denial letter, IRS Exempt Organizations Director Stephen A. Martin said Christians Engaged is involved in “prohibited political campaign intervention” and “operate[s] for a substantial non-exempt private purpose and for the private interests of the [Republican Party].”

A “legend” at the top of the letter shows nine letters of the alphabet being used as shorthand to represent something. In this letter’s example, oddly, “D” represented “Republican.”

Specifically, you educate Christians on what the Bible says in areas where they can be instrumental, including the areas of sanctity of life, the definition of marriage, biblical justice, freedom of speech, defense, and borders and immigration, U.S. and Israel relations,” Martin wrote. “The Bible teachings are typically affiliated with the D party and candidates. This disqualifies you from exemption under IRS Section 50I(c)(3).”

Ziggy - IRS AuditTo me, it matters not that the letter D represents republican.  America is a Republic, and any political action taken can be connected to a Republican government.  Not necessarily the “GOP” as the Republican Political Party.  If the IRS official cannot ask questions, the voices inside his head speak louder than his abilities to make logical decisions. In that case, he does NOT deserve his position, having been promoted above his maximum level of incompetence!  In making this decision, the IRS official has declared that the democratic party does not ever use biblical teachings to reach conclusions.  Is Speaker Pelosi and President Biden aware of this fundamental change in political foundations?

Feel free to tell me in the comments section, do you feel the IRS Non-Profit Targeting Scandal of 2010 thru 2013 has been handled effectively and properly closed?  Better still, was it appropriate for Lois Lerner to plead the Fifth Amendment and not have legal actions taken? Finally, do you honestly trust the IRS to be an apolitical, unpoliticized, and neutral agency engaged in honest and forthright government business?

Details about the IRS.

Government Largess 3From irs.gov, we find the following, and it raises more questions than answers.  Under the heading, “The IRS Mission,” we find the following, poor grammar, wrong sentences, and detestable language and all:

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

This mission statement describes our role and the public’s expectation about how we should perform that role.

            • In the United States, the Congress passes tax laws and requires taxpayers to comply.
            • The taxpayer’s role is to understand and meet his or her tax obligations.
            • The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.”

Would someone at the IRS tell me, how are you “providing top quality service” when you cannot reach the IRS by phone, the office hours are limited, and answers are forced to come from hired third parties?  I have been forced into multiple-day issues with the IRS Website, no answers, no contact information, and no assistance until I hired someone who answered my questions at $100 an hour.  If the IRS reads this article, that is not how you define “top quality service.”

QuestionWhat is “fair share?”  Using this phrase, the IRS declares it is already politicizing the payment of taxes, as the expression “fair share” has been captured for more than a decade by the Democratic Party.  Using this phrase in your mission statement demands a straight and correct answer in the rest of your marketing materials.  Yet, no explanation has ever been found.

Enlighten me, the second bullet point, how is the taxpayer to “understand and meet” “tax obligations” when the agency who collects those tax obligations refuses to answer questions, actively hinders transparency, denies accountability and refuses scrutiny?  What are “compliant taxpayers?”  Through forced taxation, collected by fear of the stick, America has been abused since the IRS was created out of whole cloth, not from the U.S. Constitution, but the demented minds of a president and complicit Congress.

Under the heading of “Statutory Authority,” we find the following:

The IRS is organized to carry out the responsibilities of the secretary of the Treasury under section 7801 of the Internal Revenue Code. The secretary has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce these laws. The IRS was created based on this legislative grant.

Section 7803 of the Internal Revenue Code provides for the appointment of a commissioner of Internal Revenue to administer and supervise the execution and application of the internal revenue laws.”

Gravy TrainAt least the grammar and sentence structure are better. However, having read sections 7801 and 7803 of the Internal Revenue Code, I have serious reservations.  For example, how did the IRS become the sole government agency in charge of defining an employee, controlling the employee/employer relationship, and acting as the force behind employment law?  When did Congress provide you with this authority?

Dont Tread On MeI repeat, only for emphasis, the following:
“The IRS governs every action made in an employment situation, and the IRS has given great latitude to the employer, making you the property of the IRS, with control granted to your employer. As a result, the IRS remains a danger to every American and the globe.  Why is the United States the only industrialized nation to not allow options to the employee/employer relationship, squashing innovation, curtailing small business opportunities, and unequally tipping the scales for large organizations?  Look to the IRS!  Want to point fingers, thank President Woodrow Wilson (D), his complicit Congress, and his executive orders!”

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: The IRS – The Pernicious and Detestable Federal Agency

Angry Wet ChickenNow that tax season is, for the most part, completed and behind us for another year.  It occurred to me that many people do not know the power and reach of the IRS in their daily lives.  Plato is quoted as saying, “The price of apathy towards  public affairs is to be ruled by evil men.”  No truer words can describe the situation with the IRS, and I think it is time every American knows just how destructive the policies of the IRS have been and continue to be.

Employee

UseLegal.com (2012) provides the actual definition of an employee, “An “employee” is defined as “a preference eligible in the excepted service who has completed one year of current continuous service in the same or similar positions” or “an individual in the excepted service (other than a preference eligible)… who is not serving a probationary or trial period under an initial appointment pending conversion to the competitive service.” Ramos v. Merit Sys. Prot. Bd., 2009 U.S. App. LEXIS 24378 (Fed. Cir. Nov. 6, 2009)”  Essentially, a person can be hired by an employer, but does not attain employee status and protection until that person has been hired for a continual year by the same employer, is not under a ‘probationary period,’ and or appointment.Apathy

An employee agrees to be controlled by an employer; that person’s production is only one of the controls granted to an employer.  Employee conduct both on and off the job can be controlled, and the means and manner of producing the work specified.  The right to control is the primary determining factor in this relationship.  The right to control is also the deciding line between freelance workers and employees.  Upon this single imperative hang tax law, the responsibility of parties, risk, and every item in employee/employer relationships, hierarchical structures, and will ultimately decide who or which party is in charge, and is entirely governed by the IRS in America!

The Right to Control

The IRS breaks into three categories the essential components where the ‘Right to Control’ hinges, namely, Behavioral Control, Financial Control, and Type of Relationship.

Behavioral Control:  Relates to the questions, what, where, and how work is completed.  Employees have set schedules, tight restrictions about how to think, where to sit, etc., dictated by the employer.

Financial Control:  Relates to all things money.  The employee is forced to accept all terms of the employer without negotiation, from business expenses to taxes.  Where Financial Control is, risk shortly follows; where risk is, the threat of litigation follows.  Therefore, when the employer has financial Control, risk follows the employer, not the employee.  Profit and loss, tools of the trade, and the freedom to offer services to other organizations are all part of the financial controls relinquished by the employee to the employer.  Under Financial Control falls the following, the Americans with Disabilities Act – 1990 (ADA).

    • The ADA’s seminal beginning originate in 1973 Section 504, which made it illegal to discriminate against those with disabilities if the organization receives Federal Government subsidies.
          • “No otherwise qualified individual with handicaps in the United States… shall, solely because of her or his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance”(ED.gov, 1995).
          • Classified disabilities by disease; includes “Hidden Disease[s],” is changed constantly to update diseases covered, and dictates the only requirement for the condition is that the disorder “have a material effect on one’s ability to perform a major life activity” (Ed.gov, 1995).
          • Business costs mainly occur in ‘soft’ costs, i.e., changing procedures, reasonable accommodations, etc., something to keep in mind, though, “… noncompliance can cost an employer.  For example, in the fiscal year 2006, the Equal Employment Opportunity Commission (EEOC) resolved 15,045 disability discrimination charges.  It recovered $48.8 million in monetary benefits for workers who did not receive accommodations to which they are entitled under the ADA” (Woog, 2008).  Thus, monetarily speaking, noncompliance costs more than compliance.

Type of Relationship:  Relates to all things in the interaction of the two independent parties, including written contracts dictating the interaction, risks, penalties, etc.  The extent of the relationship is a significant point and colludes with permanency and benefits to form the marriage between two independent entities.  The employee forfeits Control in this arena to the employer who automatically sets the terms, demands compliance, and exerts totalitarian Control.quote-mans-inhumanity

Employee Surveillance

IRS.gov (2018) sets the standard upon which the premise for employee surveillance rests; the business organization holds the right to control, monitor, insist, and legally demand employee behaviors. Goshray (2013) quoted Cashmore (2009) and is correct; employee privacy is dead, and the origination is social media.  Thus, with the IRS granting legal ability to monitor and control employees, there are no other legal or ethical issues, privacy concerns, or anything else wrong with employee surveillance.  If the employee chooses to take issue with the monitoring, that employee is free to end their relationship with the company; in fact, Lyon (2017) substantiated that with newer employees, who have grown up with the acceptance of digital citizenship, surveillance is expected and no privacy concerns exist in the workplace.Patriotism

Holt, Lang, and Sutton (2017) further inform that employee surveillance does not affect potential employees’ rating of the organization’s ethics, nor the organizational views when monitoring, e.g., employee surveillance is higher than another business in the same industry. Holt et al., (2017) further added that employee surveillance has been, and continues to be, radically changed by the technology available (Waxman & Barile, 2016).  Returning to the organizational “right,” as provided by the government through both edict and legislation, employees have no individual control and relinquish privacy rights upon hire to the employer (IRS.gov, 2018).

Vargas (2017) reviewed a business and found that the employer considers each employee a criminal and that through working for the company, investigated criminalization of employee behaviors is enacted and reproduced.  Essentially, making each employee an automatic suspect anytime a crime occurs, suspecting every transaction, and disciplining for minor changes in expected corporate behaviors. While admittedly, this behavior by the business might be considered extreme, it is not beyond the legal “rights” of the employer.  An argument could be made to treat employees better to reduce churn; in this particular industry (retail), high churn means you pay less in wages because good employees leave quickly and bad employees are fired fast.  Thus, criminalizing the employee is not wrong; employee surveillance is not unethical and should have no consequences for honest employees.The Duty of Americans

However, labor unions vociferously continue to advocate privacy in the workplace and attempt to place limits upon employee surveillance by a company, completely disregarding the fact that the employer has the legal right and ability to demand and enforce all types of direct and indirect employee surveillance programs (Goshray, 2013; Holt, Lang, and Sutton, 2017; IRS.gov, 2018; Leclercq-Vandelannoitte, 2017; Lyon, 2017; Waxman & Barile, 2016; Vargas, 2017).  While Leclercq-Vandelannoitte (2017) attempts to place ethical constraints, prior knowledge, policies, and procedures around employee surveillance, nothing in the IRS.gov (2018) mandates declare an employer has to mention or warn employees that their every keystroke, every conversation, and every action are directly and indirectly monitored as the “right” of the business.

Knowledge Check!Is the pernicious role of the IRS now more understood?  Your Employer/Employee relationship is not governed by the NLRB, but by the IRS, and this was by design to protect tax money!  Every action made in an employment situation is governed by the IRS, and the IRS has given great latitude to the employer, making you the property of the IRS, with control granted to your employer.  The IRS remains a danger to every American, and the globe.  Why is the United States the only industrialized nation to not allow options to the employee/employer relationship, squashing innovation, curtailing small businesses opportunities, and unequally tipping the scales for large organizations, look to the IRS!  Want to point fingers, thank President Woodrow Wilson (D) and his complicit Congress and his executive orders!

References

Effelsberg, D., Solga, M., & Gurt, J. (2013). Getting followers to transcend their self-interest for the benefit of their company: Testing a core assumption of transformational leadership theory. Journal of Business and Psychology, 29(1), 131-143. doi:10.1007/s10869-013-9305-x

Ghoshray, S. (2013). Employer surveillance versus employee privacy: The new reality of social media and the workplace. Northern Kentucky Law Review, 40(3), 593-626. Retrieved from https://search-ebscohost-com.contentproxy.phoenix.edu/login.aspx?direct=true&db=lgs&AN=90242325&site=ehost-live&scope=site

Holt, M., Lang, B., & Sutton, S. G. (2017). Potential employees’ ethical perceptions of active monitoring: The dark side of data analytics.Journal of Information Systems, 31(2), 107-124. doi:10.2308/isys-51580

Leclercq-Vandelannoitte, A. (2017). An ethical perspective on emerging forms of ubiquitous IT-based Control.Journal of Business Ethics, 142(1), 139-154. doi: http://dx.doi.org.contentproxy.phoenix.edu/10.1007/s10551-015-2708-z

Lyon, D. (2017). Digital Citizenship and Surveillance| Surveillance Culture: Engagement, Exposure, and Ethics in Digital Modernity. International Journal of Communication, 11, 19.

Waxman, S. S., & Barile, F. G. (2016). “Eye in the sky:” Employee surveillance in the public sector. Albany Law Review, 79(1), 131.

U.S. Internal Revenue Service (IRS.gov) (2018). Independent contractor vs. employee. Available from http://www.irs.gov/businesses/small/article/0,id=99921,00.html

U.S. Internal Revenue Service (IRS.gov). (2018). The Agency, its Mission, and Statutory Authority. Retrieved from http://www.irs.gov/irs/article/0,,id=98141,00.html

Vargas, T. L. (2017). Employees or Suspects? Surveillance and Scrutinization of Low-Wage Service Workers in U.S. Dollar Stores, 20(2), 207–230. Retrieved from https://search-ebscohost-com.contentproxy.phoenix.edu/login.aspx?direct=true&db=eoh&AN=EP123822581&site=ehost-live&scope=site

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