The IRS puts a damper on Phil Murphy’s property tax charity scam

Earlier this month Phil Murphy and his Democratic henchmen in the NJ state legislature created what they call a “workaround” to the $10,000 cap on state and local tax (SALT) deductions that was enacted as part of President Trump’s tax reform package. The SALT deduction is popular in high tax states like NJ where the average taxpayer claimed a deduction of more than $18,000 against his taxable income last year. But it’s unfair to residents of low tax states who end up subsidizing NJ’s profligate spending local governments as they pay more in federal tax on similar gross incomes.

The scheme concocted by Murphy transforms property tax payments into “charitable contributions,” which remain fully deductible.

The new law (S1893) allows municipalities, counties and school districts to set up charitable funds to pay for public services. Residents who donate to the funds can receive a credit of up to 90 percent toward their property tax bills, and those contributions can then be written off as charitable deductions on their federal taxes.

Republicans warned Murphy that property tax payments aren’t really charity. Assemblyman Michael Patrick Carroll labeled it “tax fraud.” Treasury Secretary Steve Mnuchin called the idea “ridiculous.” And acting IRS Commissioner David Kautter expressed skepticism about it when addressing a congressional committee back in February.

Yesterday the IRS officially weighed in, and it doesn’t look like they’re going to let Murphy scam them.

But, on Wednesday, the IRS and Treasury signaled they could take a dim view of states taking this sort of action.

The agencies issued a notice saying that they plan to propose regulations to “help taxpayers understand the relationship between federal charitable contribution deductions and the new statutory limitation on the deduction of state and local taxes.”

“Taxpayers should be mindful that federal law controls the proper characterization of payments for federal income tax purposes,” the notice says.

That’s bureaucrat-eeze for “don’t do that.”

So of course Murphy immediately backed down and vowed to find a way to meaningfully reduce our state’s highest in the nation property tax burden.

Just kidding! He unleashed Josh Gottheimer and Bill Pascrell with threats of, wait for it, lawsuits.

“It’s Jersey. We’re ready for a fight,” said U.S. Rep. Josh Gottheimer, D-5th Dist., a leading proponent of efforts to use charitable funds as a way to evade the cap.

“It would give some relief to the taxpayers who are being screwed by the Republicans,” Pascrell said. “If the IRS rules it to be unlawful, we’ll have do something else and we’ll see them in court, guaranteed.”

If we’re being screwed by anyone, it’s NJ Democrats, who continually find new and destructive ways to separate us from our hard-earned money. Rather than trying to tamper down NJ’s tax burden Murphy is demanding more than $1.5 billion in new taxes for the upcoming fiscal year. Because Democrats are genetically incapable of cutting spending, but they’re very good at blaming Republicans for the problems they’ve caused.

How convenient, White House announces capture of Benghazi attack suspect

Look, Squirrel!

A suspected terrorist linked to the 2012 Benghazi terror attack that killed four Americans has been captured inside Libya by U.S. forces and currently is en route to the United States, Fox News has learned.

Sources told Fox News that the suspect, Ansar al-Sharia commander Ahmed Abu Khattala, was captured Sunday during a joint U.S. military and law enforcement operation, and will face prosecution in the United States.

President Obama signed off on the mission on Friday night, Fox News is told. Khattala was captured south of Benghazi by U.S. special operators and is on his way to the U.S. aboard a Navy ship.

Also on Friday night, the IRS claimed it “lost” emails from 6 more key officials involved in the Lois Lerner scandal.

Purely coincidentally, I’m sure.

And Obama’s disastrous withdrawal from Iraq has also been in the news recently, much to the chagrin of Hillary Clinton’s publicist.

Then there’s the ongoing VA scandal which shows no signs of dissipating any time soon.

So, color me cynical, but it sure seems like a good time to divert our attention. And trot out what his sycophantic media will call a nice finish to the Benghazi issue and a “win” for their president.

Because, really, he’s never tried that tactic before, right?

 

Obama as Nixon: White House and IRS traded confidential taxpayer info to attack Tea Party groups

Anything to win an election, right?

Top Internal Revenue Service Obamacare official Sarah Hall Ingram discussed confidential taxpayer information with senior Obama White House officials, according to 2012 emails… Lois Lerner, then head of the IRS Tax Exempt Organizations division, also received an email alongside White House officials that contained confidential information.

Ingram attempted to counsel the White House on a lawsuit from religious organizations opposing Obamacare’s contraception mandate. Email exchanges involving Ingram and White House officials — including White House health policy advisor Ellen Montz and deputy assistant to the president for health policy Jeanne Lambrew — contained confidential taxpayer information, according to Oversight.

Remember when using the IRS for political gain was considered an impeachable offense?

What’s the over / under on when Obama is forced to say, “I am not a crook”?

Obamacare, so great the guys who wrote it, and the guys who’ll enforce it, don’t want to be in it

Democrats in Congress are worried that forcing their staffers into Obamacare will cause too many of them to abandon their cushy DC jobs. A “brain drain” they call it. So Dear Leader promised them he’ll fix things so they’re exempt.

But if the rest of us are herded into Obamacare and part-time-job-hell, well that’s just too bad. Shit happens dontcha know.

Just as long as it doesn’t happen to the IRS. The closest they want to come to Obamacare is penalizing us for not having it.

The Death Panel met, and pulled the plug on Irony.

IRS agents are now on their way to this bait shop

From the Star-Ledger’s “live blog” coverage of Dear Leader’s trip to the Jersey shore today, I saw this tidbit.

Before the motorcade crossed the bridge into Point Pleasant Beach a man outside a bait and tackle shop had a sign that said Obama with the name crossed out. He gave the motorcade the middle finger as it passed.

And I thought, this guy just bought himself a proctology exam courtesy of the IRS…

Lois Lerner will plead the Fifth before Congress, who is she protecting?

Lois Lerner has lawyered up, and plans to plead the  Fifth.

Lois Lerner, one of the IRS officials at the center of the scandal involving the targeting of conservative groups, is going to plead the fifth rather than answer to Congress for the actions of the unit she oversaw. It’s one thing to lie to the American people, even if it gets one a bushel full of Pinocchios, but quite another to lie under oath.

The thing is though, what is she really afraid of? Her boss said no crime was committed. White House flunky Dan Pfeiffer went on TV this past weekend and tried to say the same thing.

So what if Chris puts his Speculation Hat on?

Lerner didn’t dream up this fiasco by herself. Bureaucrats don’t operate that way. Somebody had her back. Someone said they’d “take care” of any problems that cropped up. So by pleading the Fifth, Lois Lerner is protecting “someone.”

Maybe that “someone” isn’t Barack Obama. But I’ll bet it’s a person close to him. A political advisor. Say, David Plouffe? Or, much more likely, Valerie Jarrett.

Val hasn’t given the Journolist Jokers the time of day for more than a year. But now she summons them to the West Wing? My guess is, they’re not there for tea. Talking points, for sure. Spin, definitely. Marching orders, you betcha.

You watch. In the next day or so one of those bozos will “break” an important memo or other document which lays all the blame for the Tea Party harassment directly at Lerner’s feet. It’ll completely absolve Dear Leader and his White House sycophants while planting her firmly under the bus.

And then, maybe a year from now, when everyone’s forgotten about the IRS and Tea Parties, Lerner’s husband’s law firm will land a nice big fat retainer from one of George Soros’s dummy corporations. The work to be performed will be somewhat nebulous, but the payout will be in the high seven figures.

Because that’s how Valerie Jarrett protects her president.