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April 07, 2009

Why should I pay taxes?

Gov. Kathleen Sebelius failed to pay nearly $8,000 in taxes (an inadvertent mistake, I’m sure) until she was appointed to the Obama Cabinet. Then, like a host of other Cabinet appointees, she paid up.

I think I’ll stop paying taxes until I get a Cabinet appointment.

Sarah J. Childers
Olathe

Comments

Smarter Than You

Preached Reverend Jim: “There's a simple explanation why so many of Obama's high-profile nominees have had tax issues. To a large extent, our tax system operates on the honor system.”

Jimmy’s right. The problem’s a lack of honor amongst our “transparent and accountable” cabinet.

Hey, I just agreed with Jimbo!

Engineer

Jim
I don't think much if anything would have been said about Sebelius' problems if it were not for Tom Dashiell and Tim Geithner. Two cases in which the “innocent error” explanation is hard to swallow. As to your remark about various income streams, all payments from commercial or financial sources are reported by the payer to the IRS.
But your idea of a corps of avaricious, greedy bureaucrats, driven to push the envelope to secure a bonus is, I suppose, what must be expected from a segment of the population.

GCYL

“to keep everyone here honest, when did the protestors (Kee, Marctnts, NMMNG) last have a CPA review their last four years of tax returns?” - Kansasdog

To keep everyone here honest, which one of the above is a State Governor? None? Okay, which one is a public servant with aspirations for greater political influence?

Due diligence should be job one with any politician. Period.

NoMoreMrNiceGuy

Jim why only the wealthy? What about people that cheat on EIC and CTCC? Which by the way, is a much bigger problem at least according someone I know that is an IRS auditor. A flat tax would fix the entire problem or implement a true progressive tax say up to $40-50M in annual income, with the top tax rate at 90%. We would see what the liberal, tax everyone else but me mongers in Hollywood and professional sports would think then. Also lawyers pay an additional 10% for a legal services tax.

NoMoreMrNiceGuy

Every year since 2002.
Politicians should be held to the SAME level of accountability rather than passing legislations that protect them and their gnag members. Sebelius is taking over an already proven fraudulent and libelous government entity. If she had been a non-custodial father and made an "honest mistake" she would be sitting in jail.

Jim

Marctnts,

My "partisan shots" comment wasn't directed at you. It was directed at those who continue to make tired jokes or act like only the "Democrat Party" does it.

Marctnts

"So when the tax filings of wealthy people are subjected to actual scrutiny, which rarely happens, it is often the case that they are found to owe money to the government."

I agree, but still, if a CPA could easily find the error when looking, it probably wasn't the most hidden of problems. My issue is that for someone who is the governor, apparently lawful returns weren't a big issue until she knew others would be looking. I think an argument could be made that, as the highest elected official in the state, she should have been holding herself to a high standard the entire time, not just when she thought she might be scrutinized.

"If you just want to take cheap political shots, this won't help."

I don't see any partisan component to my criticism. Notice that I never mentioned party affiliation. I'm fully aware that someone from either party is just as capable of this sort of thing, and it seems a little weak to dismiss any criticism as nothing more than sour grapes.

mike d

With the way the IRS works she probably only made a $100 mistake, with the rest being interest and penalties. Or are politicians exempt from interest and penalties?

Jim

There's a simple explanation why so many of Obama's high-profile nominees have had tax issues. To a large extent, our tax system operates on the honor system. This is especially true of relatively wealthy people who have income streams from multiple sources (not just weekly paychecks).

The tax code is also so complicated that errors are easy to make. So when the tax filings of wealthy people are subjected to actual scrutiny, which rarely happens, it is often the case that they are found to owe money to the government.

I get that this letter is meant to be funny, but there's a much easier way to make these people pay up than nominating them to the cabinet. Just hire more tax auditors and have them focus their efforts on the wealthy. Any decent auditor will more than offset his or her yearly salary by the amount of unpaid taxes and penalties collected. The increased threat of an audit will also motivate others to be more honest about reporting their income in the first place, thereby increasing government revenue.

It's a win-win. Of course, that only applies if you want to fix the problem. If you just want to take cheap political shots, this won't help.

Kansasdog

to keep everyone here honest, when did the protestors (Kee, Marctnts, NMMNG) last have a CPA review their last four years of tax returns?

Marctnts

"...no one will ever know besides her if this was an honest mistake..."

I agree, and I tend to think that it probably was an honest mistake and/or an overly aggressive accountant. My issue with the whole thing has been that as the GOVERNOR OF THE STATE OF KANSAS, she apparently wasn't concerned enough about her tax status to do the same kind of due diligence she did when nominated (which quickly highlighted the error). In some ways it leaves me with the impression that she was only concerned with her adherence to the law when she knew others would be looking as well.

Kee

Huh?

Stifled Freedom

We will send you post card in prison.....if we can even determine what prison your in. Once your in federal prison, the feds dont acknowledge your existence so it might be tough.

Kee

Golly just think, if we give BO a few more new cabinet slots to fill we might make a whack into the $3.6 Trillion debt he is leading us into!

Roger Lambert

You can't blame your CPA for tax errors. We are responsible for paying our own taxes.

How many of Obama's cabinet members have had tax issues so far? Half a dozen?

It does make one wonder why a party devoted to raising taxes on others has such a problem paying their own fair share.

T. Hanson

Yea.. if she owed $18k in taxes she could have been a contender for VP.

NoMoreMrNiceGuy

Only $8,000? That is an entire year of mortgage payments for some of us.

If someone owed you $8,000 you would consider it small fry?

Again, more excuse making. If Sebelius was not a Democrat, there would be all sorts of bashing and blame.

T. Hanson

Marctnts, no one will ever know besides her if this was an honest mistake or that she was hording the whole $8,000 (and possible prison time) if she knownly tried to keep it a secret.

I would think this one was an honest mistake just because if you are trying to defruad the government then shoot for the moon. You will go to jail for either $8k or $800k.

Marctnts

"...her CPA discovered the problem and she promptly paid."

True, but there's a flip-side as well. Why did it take her nomination as HHS secretary for her accountant to verify that she was complying with tax laws? Until she knew the inevitable scrutiny that comes with nomination was eminent, she was apparently fine with what she had paid in the past and had no desire to make sure it was correct.

T. Hanson

I know I will get flamed by this, but it was just $8k, and as posted she repaid once she found the error. It does not sound like she had $1.2 Million in an off-shore account and she owed $80,000. Or she did not go to court contesting the error.

About 4 years ago Bush was in office and there were tons of whiners. The Right wingers said that they were sure a lot of babies and unpatriotic. Funny now that the Right is whining just as loud. So much for them being the higher ground folks.

 
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