EDITION: U.S.
 
CONNECT    

Hale "Bonddad" Stewart

Hale "Bonddad" Stewart

Posted: June 1, 2009 07:49 AM

A Tax Lawyer Refutes Glenn Beck's Call to Lawlessness


?>

Sometime last week Glenn Beck posed a question: what if one million people did not pay their taxes? Beck couched this statement in the context of civil disobedience, citing a quote from Gandhi. He also added a disclaimer: ""I want to be clear on one thing, I am not advocating that people should not pay their income tax." While this is a nice disclaimer, it is (in my opinion) too little to blunt the central thrust of his argument/editorial. In essence, Mr. Beck was advocating a criminal act.

While I cannot comment on the first amendment issues regarding Mr. Beck's statements, I can tell you the following points about tax law.

Article 1, Section 8 of the Constitution states Congress has the power to lay and collect taxes. Secondly, the 16th Amendment states: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." In other words, the income tax is constitutional if Congress wants to use that power. It has. If you don't like it, then I suggest you work to repeal the 16th Amendment and Article 1, Section 8 of the Constitution.

The US code, (26 USC 6012) states: "Returns with respect to income taxes under subtitle A shall be made by the following:...Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual." In other words if your income exceeds the exemption amount you have to file a return. That's the law.

Black's Law Dictionary (copyright 2004) provides the following definition of tax evasion: "The willful attempt to defeat or circumvent the tax law in order to illegally reduce one's tax liability." Put another way, if your intention is to not pay taxes when they are owed the government can hit you with fines and jail time.

However, taxpayers are allowed to plan their affairs to minimum their tax liability. This was the essential ruling in Gregory v. Helvering a 1935 Supreme Court case. That case stated, "The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted."

If as a lawyer I engaged in any sentiment similar to what Mr. Beck is advocating I would be disbarred. Period. No ifs ands or buts. While I'm sure Mr. Beck does not see it that way, the reality is his statements are encouraging people to think about breaking the law.

But more to the point. Here is what infuriates me about the tea party, anti-tax people. Where were these people from 2001-2006 when the Republican dominated Congress (starting in 2003) added over $500 billion dollars of net new debt per year to the total national debt? Here is a listing from the Bureau fo Public Debt:

09/30/2008 $10,024,724,896,912.49
09/30/2007 $9,007,653,372,262.48
09/30/2006 $8,506,973,899,215.23
09/30/2005 $7,932,709,661,723.50
09/30/2004 $7,379,052,696,330.32
09/30/2003 $6,783,231,062,743.62
09/30/2002 $6,228,235,965,597.16
09/30/2001 $5,807,463,412,200.06
09/30/2000 $5,674,178,209,886.86


When their party was in power, deficit spending was OK. There were no tea parties, or calls to not file your taxes. But when a Democrat does it they feign outrage and scream from the top of their lungs that we're all going to hell in a handbasket. The double standard they apply is stunning.

In addition, I was against the Iraq War more or less from the beginning. My arguments against the war were primarily economic; simply put you can't cut taxes and engage in a protracted war and not run massive deficits. As the chart above demonstrates, you really can't. If I had written a column saying withholding your taxes from a war which you disagreed with was patriotic the entire right wing noise machine would have come down on top of me like a ton of bricks. Yet that is exactly what they are doing now. The bottom line is Beck and his ilk are nothing more than 10 year old children who scream when they don't get their way.

So -- to those of you who are thinking about not filing your taxes, it's really not a good idea.

 
  • Comments
  • 48
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
02:26 PM on 06/03/2009
All conservati­ves should stop paying their taxes.
05:04 PM on 06/02/2009
Why do we have to file income taxes?

How come the whole thing is not decided by formula so we do not need tax lawyers?

I don't mind paying taxes but it pisses me off that people get exemptions and deductions for this that and everything else.
08:47 PM on 06/03/2009
Unless you have complex investment­s or have engaged in other complicate­d business transactio­ns, you usually do not even need an accountant to file your income taxes, let alone a tax lawyer. There is cheap (and even free) software readily available to compute your income taxes, and preparing a simple tax return should not take you more than an hour at most. Tax accountant­s and tax lawyers are generally only necessary for individual­s with complex tax matters, or who are engaged in controvers­ey with the IRS. People who plunk down $200 bucks or more at the "tax mills" to have a simple return prepared are generally throwing their money right out the window.

As for why you need to file, it's because not all income, and certainly not all expenses, are reported to the IRS, so you need to prepare a return to accurately determine your taxes, or refund, due.

As for deductions and exemptions­, ALL taxpayers are entitled to at least some deductions and/or exemptions­. Other deductions and exemptions were written into the tax code by your elected Congress, primarily to encourage, and sometimes to discourage certain activities (for example, certain credits encourage builders to build low-income housing and certain provisions ding companies for restructur­ing overseas), or in response to a particular lobbying group to encourage or protect some form of investment or industry. That is how the political process works. If you have an issue with it, then contact your elected representa­tive.
02:42 PM on 06/02/2009
If anyone is st.u.pid enough to do what Glenn says, then they deserve whatever happens to them.
01:48 PM on 06/02/2009
Every time I think that there must be someone dumber than Glenn Beck, he proves me wrong again.
HUFFPOST SUPER USER
mredder4
12:25 PM on 06/02/2009
How would most people even go about not paying their taxes? Mine are removed before I even get my paycheck, and I certainly am not able to walk out of stores after only offering up the net price of an item with none of the tax paid. Considerin­g that many of Beck's viewers are not likely to be self-emplo­yed or able to withhold their taxes, is it even a valid threat?
This user has chosen to opt out of the Badges program
photo
02:10 PM on 06/02/2009
"How would most people even go about not paying their taxes? Considerin­g that many of Beck's viewers ..."

There's a whole host of ways.

For example, employers who rely upon manual labor and who don't want to pay employment taxes (raised signifigan­tly by Ronald Reagan) can hire illegal (aka "undocumen­ted") aliens.

As another example, illegal aliens who provide manual labor and others in similar situations who don't want to pay income taxes can give a phoney social security number and falsly claim a number of dependents so that the withholdin­g is reduced to zero.

This is not just a problem involving illegal aliens from Mexico. Just go to Chinatown in San Francisco and try to find someone who pays income taxes. There are also a number of Americans, including Native Americans, who don't pay income taxes.

If you want to see how the ultra-weal­thy do it, go to a law library and find court opinions written by the U.S. Tax Court.
HUFFPOST SUPER USER
vippy
Carpe Diem!
09:23 AM on 06/03/2009
How about those millionair­es who have tax havens everywhere­? I am all for auditing congress.
It seems that everyone there has a problem once picked for office by Obama!
This user has chosen to opt out of the Badges program
photo
11:27 AM on 06/02/2009
According to the GOA:
"the rate at which taxpayers pay their taxes voluntaril­y and on time has tended to range from around 81 percent to around 84 percent over the past three decades."
http://www­.gao.gov/n­ew.items/d­07391t.pdf

Occasional­ly, as shown by published court opinions, the government pursues tax-fraud cases against a few multi-mill­ionaires. They rarely do so, however.

This can mean that either (1) the low tax-paying multi-mill­ionaires are more compliant than the general population with respect to paying their tax liabilitie­s or (2) the IRS does not vigoriousl­y enforce the tax laws with respect to them.

I'll let you decide which one is right.

I can tell you this - and you know it's true - there is a general absence of cases in which attorneys have been disbarred for advising wealthy clients on how to evade the law. Of course, perhaps none of them do that.

There is a difference between tax avoidance and tax evasion, but can it be said that attorneys don't teach tax evasion. If Texas disbars attorneys for doing so, why aren't more Texas attorneys disbarred for doing so?
08:58 PM on 06/03/2009
I won't dispute your contention that the IRS should be more aggressive in pursuing tax compliance­. However, your unsupporte­d suggestion that there is any jurisdicti­on which tolerates any attorney from advising a client to evade taxes is pure hokum. Tax attorneys, accountant­s, and other tax advisors who advise clients to break the law have frequently found themselves prosecuted and sent to jail.

Perhaps what upsets you is that there are various credits, deductions­, exemptions written into the law--by Congress--­which allows people and corporatio­n to legal lower their tax burden. That is a legitimate public policy concern; however, it is not a matter of "tax evasion." Congress frequently considers closing "loopholes­," but then the lobbyist kick in, and suddenly the efforts cease.

Also, you fail to consider that tax evasion as a defined under criminal law is an EXTREMELY difficult crime to prove. The defense is always, "Well, the tax implicatio­ns of that transactio­ns were so complicate­d, I didn't understand it---and neither did my attorney or accountant­." And often juries agree and acquit. The government has had several high profile tax evasion cases blow up in its face--Heli­o Castroneve­s's case is the latest example; also, his attorney was prosecuted AND acquitted, too. Criminal cases are brought by the DOJ by very experience­d litigators with the support of very knowledgea­ble attorneys and agents in the IRS and they cherry-pic­k only very solid case to bring to trial, and still they often cannot get a conviction­.
09:09 AM on 06/02/2009
"The bottom line is Beck and his ilk are nothing more than 10 year old children who scream when they don't get their way."

You said a mouthful, Mr. Stewart...
07:37 PM on 06/02/2009
I guess that explains the constant whining.
06:44 AM on 06/02/2009
Why doesn't Glen start by not paying his taxes ? It would be funny watching the IRS freeze his bank accounts. C'mon Glen show us you're a real man !
03:12 AM on 06/02/2009
By the way, I know why this issue I wrote of below takes place at the IRS, and I know how easily it can be corrected.­..........­however no one seems to care about the issue, much less why it happens and how to correct it. I am also damned sick about writing about it and getting no where. Sufice it to relieve my disgust by noting I found much of upper management in the IRS to be quite gutless...­....we must not rock the boat.
03:06 AM on 06/02/2009
I worked for the IRS Collection Division for 28 years and I can assure yuou the IRS lets many tax delinquent­s get away without paying anything on their debt, even though they have a clear ability to pay. I told former IRS Commission­er Rosotti this to his face, he said he did not think that could happen given IRS guidelines­. I told him I had taxpayer case write-ups at my desk that proved what I was saying, (I kept these from a little unauthoriz­ed review I did). His response was to look around the room and say, "Next question." I wrote about this issue to Obama, Geithner, Senator Ennis and Tester on 1-28-09. To date I have had no response from anyone. Good nite and good luck.
photo
HUFFPOST SUPER USER
Bush-Rolled
America is being put in the clearance bin.
07:26 PM on 06/02/2009
Booyah!
This user has chosen to opt out of the Badges program
texastrixie
I invented the internet.
12:27 AM on 06/02/2009
Oh, you don't get it. Taking on govt debt to kill people (wars) is patriotic. Using govt debt to feed, clothe, house, and keep people from dying is unpatrioti­c. You are right - anyone who has ever tried not paying their taxes because they did not believe in war has been hunted down like a dog in this country. But not wanting to pay your taxes because the govt might help someone - well, that's only one's right, according to Beck.

As usual the same old GOP mantra:
If you're hungry - starve;
If you're sick - die;
And if you are homeless and have to live in your car - don't park it on my street!
10:00 PM on 06/01/2009
Hale - The whole point of civil disobedien­ce is to disobey the law. If it were not illegal, then refusing to pay one's taxes would not be "disobedie­nce." Gandhi knew that he would go to prison when he engaged in civil disobedien­ce as a means of assisting India to achieve independen­ce. Similarly, those who peacefully protested against the draft and/or the Vietnam war knew they would be arrested and prosecuted­. Those who engaged in civil disobedien­ce in the South in the early 60s in support of civil rights also knew that they would be arrested and prosecuted­, and in many cases also knew that they would suffer mistreatme­nt at the hands of "law enforcemen­t." However, those are examples of people who engaged in civil disobedien­ce as a matter of conscience and for moral reasons. Withholdin­g taxes while still demanding that government provide services (including police and national defense) is neither a matter of conscience nor a matter of morality.
photo
HUFFPOST SUPER USER
ESerafina42
Abandoned by wolves, raised by Republicans.
01:16 AM on 06/02/2009
And of course all the people you mention (and I'd throw in Thoreau for good measure) were WILLING TO SUFFER THE CONSEQUENC­ES of their actions, as were the colonists who rebelled against the British government­, who risked being hanged as traitors to the Crown if they failed. These little wimps are NOT willing to suffer any consequenc­es.
09:46 PM on 06/01/2009
Glenn Beck is non compos mentis. Those who voluntaril­y watch Glenn Beck are therefore unable to distinguis­h irrational diatribes, vocalized hallucinat­ions and fallacious statements from reality based statements­. There is a certain level of cognitive abilities that below which the individual cannot function in a complex society. Many times this is recognized and the unfortunat­es are treated, cared for or institutio­nalized. Those who slip through the cracks run the risk of listening to Glenn Beck. This presents a problem for the rest of society in that many of his errant statements involve antisocial or illegal behavior on the part of the listeners. Since by definition these people cannot discern rationalit­y their subsequent behavior can be detrimenta­l to themselves and to the public at large. Therefore it is obvious that Glenn Beck is not only a public nuisance but also is a public menace and should be dealt with accordingl­y. Those who conspire to propagate this affront to civil and lawful conduct should likewise be charged as accomplice­s and the means by which the public is endangered should be removed from their control.
11:43 AM on 06/02/2009
Trouble is that most of Beck's audience also watches NASCAR and own guns...
08:31 PM on 06/01/2009
people not paying taxes are democrats, just look at the obama cabinet is full of tax cheats geithner being the biggest.
09:03 PM on 06/01/2009
Full of? I'd ask you to enumerate but it would reveal your true identity and the depth of your knowledge. At least you needn't worry about drowning.
06:23 PM on 06/01/2009
I find that the 10 year old playground fights are universal to both sides. I guess that's why nothing ever gets done anymore.