By Larry Kudlow
Saturday, May 18, 2013
When you get right down to it, the political targeting
and stalling of tax-exempt applications by the IRS was an effort to defund the
Tea Party. Rick Santelli, one of the Tea Party founders and my CNBC colleague,
was the first to make this point. I’ve taken it a step further: The IRS was
taking the Tea Party out of play for the 2012 election, as it looked to avoid a
repeat of 2010 and another Tea Party landslide.
There are a lot of numbers out there. Some say Tea Party
applications for tax-exempt status averaged 27 months for approval, while
applications from liberal groups averaged nine. In one extreme case, according
to the Washington Post, the IRS granted the Barack H. Obama Foundation
tax-exempt status in a speedy one-month timeframe. Yet some conservative groups
waited up to three years, and some still haven’t received approval.
But there can be only one reason for the stalled-out
approval process for conservative groups. The IRS was trying to put them out of
business. Thus far, there’s not one wit of contradictory evidence.
Think of this: If the IRS wasn’t politically targeting
conservative groups, why did its leading spokespeople lie? This was not even
cognitive dissonance. It was outright lying before Congress. Lois Lerner, a key
player in the IRS’s tax-exempt division, is being accused by the House
Oversight and Government Reform Committee of no fewer than four lies. The
inspector general’s report shows that she knew about the targeting problem in
June 2011, but wouldn’t admit to it in correspondence with Congress over the
next two years.
Then there’s former IRS commissioner Douglas Shulman, a
Bush appointee. He apparently knew about the targeting in May 2012, but told
Congress in August 2012 that he didn’t.
Or there’s former IRS acting director Steve Miller, who
was just pushed out. He also knew about the targeting in May 2012, but later
refused to admit it to Congress during testimony.
In fact, the whole bloody agency may have known about it
on August 4, 2011. According to the Treasury Department IG report, various IRS
big wigs met that day to talk about the conservative-targeting problem. That
meeting may have included the IRS’s chief counsel; while the IG report says he
was at the meeting, the IRS has denied that he was. But if one of his minions
was at the meeting, the chief counsel would have known about the problem.
And it turns out the Treasury’s inspector general, J.
Russell George, told senior Treasury officials in June 2012 that he was
auditing the IRS’s political-organization screening. That means White House
appointees in the Treasury, including deputy secretary Neal Wolin, were aware
of the IRS scandal before the presidential election. According to the New York
Times, IG George “did not tell the officials of his conclusions that the
targeting had been improper.”
No one knows the exact facts, which presumably will come
out in the hearings. But this is important stuff. It is conspiracy stuff.
Criminal stuff.
We already know that IRS employees gave heavily to Obama
in 2008 and 2012, and very little to candidates McCain and Romney. But who was
the quarterback in all this? Who was managing the targeting operation in the
bowels of the IRS?
It could have been Sarah Hall Ingram. She served as
commissioner of the IRS’s tax-exempt division between 2009 and 2012. And she
got a $100,000 bonus for her efforts. And now -- incredibly -- she’s running
the IRS’s Affordable Care Act (Obamacare) office, leaving her successor Joseph
Grant to take the fall. But he just turned tail and resigned.
And now get this: President Obama has named OMB
controller Daniel Werfel acting director of the IRS. And he’s only going to
serve between May 22 and the end of the fiscal year, which is September 30. Are
you kidding?
In four months, we’re to believe Mr. Werfel is going to
piece together the lies, finger the quarterback, and replace everybody who was
involved, not just in the now-infamous Cincinnati office, but in offices in
Washington, D.C., two towns in California, and
even Austin, Texas. (That’s the latest count.) And this guy Werfel is
also supposed to manage the agency which is adding Obamacare to its income-tax-collection
responsibilities. In four months.
Nuts.
An independent special counsel with subpoena power is the
only possible solution. This counsel must find out exactly what happened and
who was involved, and then come up with a fix so it never happens again. Of
course, Obama charged Treasury secretary Jack Lew with straightening this out.
But Lew’s an Obama political operative.
By the way, a special counsel will have to do a special
investigation, since we’re already learning the inspector-general investigation
was a very superficial operation. And an independent special counsel can
investigate any possible White House connections with senior Treasury
officials, connections that could lead to the Oval Office.
We may hate the IRS because of its taxing power. We may
hate it more because of its new Obamacare power. But it is a massively
important government agency. And now we know that it is fraught with corruption
and a liberal-left political agenda.
Only an independent special counsel could possibly
straighten this mess out.
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