May 01, 2010
There's No Way This Can Be Real, Right?

Here's a commercial from the Pennsylvania Tax Amnesty (HT: Lew Rockwell). This raises a question for privacy advocates: taxation requires that people basically have no financial privacy. How are government invasions of financial privacy different from other kinds of privacy? Has the ACLU ever sued the IRS or state taxing authorities for inserting themselves into every financial transaction? Comments are open.

Posted by Art Carden at 11:31 PM in Politics

Comments

This brings to mind Irving Kristol's quip about liberals (paraphrasing): "It's ok for a 16 yr. old to dance on stage naked as long as you pay her the minimum wage." I guess as long as government doesn't peer into our bedrooms while were having sex, it's fine -- unless there's a financial transation involved.

Posted by: Lee Waaks at May 2, 2010 11:09 AM

This brings to mind Irving Kristol's quip about liberals (paraphrasing): "It's ok for a 16 yr. old to dance on stage naked as long as you pay her the minimum wage." I guess as long as government doesn't peer into our bedrooms while were having sex, it's fine -- unless there's a financial transaction involved.

Posted by: Lee Waaks at May 2, 2010 11:10 AM

I find this ridiculous. The government crosses the line violating our rights to privacy, promised to us in the fourth amendment. Our personal information is more than our names, numbers, and social security. Our personal information also includes our credit score, driving record, work history, and more. Our right to privacy includes us having control over all of this information and yet we're losing this right.

Posted by: Raji at May 2, 2010 07:48 PM

As a mid-level “fiscal officer” employed by the Commonwealth of PA, formerly employed by the office of the budget, I can tell you this is not only real but totally anticipable and worse than you can imagine.

The dead tree media won’t tell you, but this is the inevitable result of decades of political shenanigans in a state where partisan differences were theater on a political monoculture of tax and spend politics. From my vantage point, the competition between the parties, with some exception has been much like that between owners of sports teams. The competition is a veneer on a closed mutual enterprise.

It’s no accident that Arlen Specter could switch parties not once, but twice and is still a viable candidate. It’s also no accident that we’ve produced legendary spenders such as Congressmen Dan Flood (D), Joseph McDade (R), John Murtha (D) and Senators John Heinz (R) and Senator Specter. Bread and circuses sells well in PA.

At the state level, we have little fiscal discipline for the Governor’s mansion for decades. Governor Robert Casey Sr., the father of the current Senator, created a fiscal crisis with his spending, and was as famous for his “pizza tax” as his deviation from Democratic Party orthodoxy on abortion.

However, the current Governor is the pinnacle of political ambition sated by hardcore retail politics. His political skills are attested to by his being welcomed by Sean Hannity, despite obvious philosophical differences. Unfortunately, his political skills are fueled by fiscal irresponsibility.

Every since the state began losing its industrial base in the 1950’s, both parties, but especially the Democrats have sought replacement constituencies for the reliable votes of industrial union members. After being elected in 2002 by winning 8 of 67 counties Ed Rendell decided to reward supporters and expand constituencies. He expanded welfare and penetrative programs such as SCHIP and directed money to “education” to reward reliable Democratic constituencies, such as the Pennsylvania State Education Association. He pushed for gambling with the promise that it would create jobs and allow for a reduction in onerous municipal school property taxes. The promised relief never came and Ed still created imaginative new programs including a movie credit gift to Hollywood.

During his term, now in its last year of two four-year terms, we have never had a budget completed on time. The last one was completed months late and completed only by with the benefit of the temporary boost of federal “stimulus” money and shenanigans such as reducing payments to fund that pays state employee benefits, essentially a sleight-of-hand method of borrowing money off the books. It was also completed with ridiculously optimistic assumptions that are now falling apart with month after month of tax shortfalls.

http://www.portal.state.pa.us/portal/server.pt?open=512&objID=11221&PageID=573633&mode=2&contentid=http://pubcontent.state.pa.us/publishedcontent/publish/cop_general_government_operations/revenue/news___reports/press_releases_portlet/revenue_department_releases_april_collections.html


Now, despite widespread unemployment and “youth flight”, high unemployment and moribund business formation, Ed wants new taxes. The legislature should be a brake on executive irresponsibility, but it isn’t. Two “legends”, Vince Fumo and Mike Veon have been tried and convicted, others have been indicted and it’s rumored other indictments are forthcoming.

As invasive as the stick part of the tax amnesty program is, its operation has been described as follows by the Pennsylvania Institute of Certified Public Accountants in its most recent Legislative Update:

http://www.picpa.org/Content/41411.aspx/#04301001

“Many PICPA members, however, are not so enamored with the program, or, rather, the process. Getting through to the department by phone has been virtually impossible, and the Web site has been described as cumbersome at best.
Most aggravating, it seems that many back-tax notices went to taxpayers who actually filed and paid their taxes. Other notices were received by individuals or businesses that had no tax liability. ”
So yes, its very real. Taxes are the business end of government, and if the hunting is bad, well the tax man isn’t above scavenging economic corpses.


Posted by: Greeneyeshade at May 3, 2010 10:19 PM

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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