TPA Presents The 2014 Taxpayer Tricks and Treats!

Today is Halloween and as everyone is getting ready for costumes and candy and parties, the Taxpayers Protection Alliance (TPA) is busy fighting all the scary things government has in store for taxpayers! With that in mind TPA is releasing the annual Taxpayer Trick or Treat list! There’s plenty to be afraid of for the taxpayer, but the biggest trick played on taxpayers is the $17 trillion debt that is approaching $18 trillion faster than a Vampire hiding from the sun!

TRICKS

Earmarks or “The Walking Dead”

Responding to voter outrage, Congress instituted transparency rules for earmarks beginning in 2008 .  In 2010, the House and Senate agreed to a two-year moratorium on earmarks. The moratorium was extended but unfortunately the ‘spirit’ of earmarks has lived on. This year TPA uncovered massive amounts of earmarked funding in Omnibus (read here) and both House & Senate appropriations bills (read here). With more than $20 billion documented from those three alone, taxpayers should be frightened at the prospect of how legislators are getting around the earmark ban and keeping these money eating Zombies alive. Now some members of Congress like Sen. Dick Durbin (D-Ill.) want to bring them back permanently.  Click here to read more about TPA’s work on earmarks.

Export-Import Bank or “The Thing That Wouldn’t Die”

Washington has a difficult time getting rid of programs, regardless of whether they benefit the taxpayer or not. The Export-Import Bank is a prime example of corporate welfare that hurts taxpayers, costs the economy millions of dollars and thousands of jobs but apparently can’t be stopped. There was no need to put a stake in the heart of this monster, all elected officials needed to do to end the bank’s charter was nothing, that’s right nothing! Yet in the recent continuing resolution the life of the damaging agency was extended into mid-2015. Maybe next year is the year this monstrosity is finally taken down. Click here to read more about TPA’s efforts to end the Export-Import Bank.

Operation Choke Point or “Nightmare on Main Street”

This year it was revealed that a troubling program has existed under the direction of the Department of Justice called Operation Choke Point. Unsettling details about the program show that through regulatory authority, the Obama Administration is using intimidation and threats to make it more difficult for certain industries to have access to financing for credit and/or loans. Businesses have been having nightmares about this program ever since it was created.  On the bright side, Congress has been taking notice holding multiple hearings on Operation Choke Point and the House has looked at how the program is funded. Click here to read more about Operation Choke Point.

Postal Service Grocery Delivery or “Cereal Killers”

The USPS recently posted their quarterly losses, and it was very scary for taxpayers: A third-quarter loss of $1.96 billion even while it increased revenue by way of price increases and increased focus on shipping packages. However, the USPS has more tricks up their sleeves as TPA recently pointed out the Postal Regulatory Commission (PRC) is planning to expand the grocery delivery service beyond current markets. TPA submitted comments to the PRC making it known that this is a terrible and costly idea for taxpayers and that the agency should be looking for more ways to make themselves more efficient with the money they are already getting from taxpayers. Click here to read more about TPA’s work regarding the USPS.

Solar Subsidies or “Howling at the Sun”

Solar companies are raking in taxpayer dollars from Washington, D.C., through the soalr investment tax credit.  State and local governments have also gotten into sucking tax dollars from unsuspecting taxpayers. In particular, California’s Go Solar California!, a “joint effort of the California Energy Commission and the California Public Utilities Commission,” has cost California state taxpayers more than $1.5 billion. One company, SolarCity, has profited by receiving more than $400 million in cash from the state and federal governments plus commissions from the financing for solar panels the company arranges for homeowners. Things only get worse for the taxpayer, because SolarCity is posting massive losses on their dime. This rip-off is being done with help from their friends in Washington and at the state and local level who are writing the rules that are enabling them to do it all on someone else’s dime. Click here to read more about TPA’s work on Solar.

TREATS

Camp Tax Reform

One treat taxpayers and small business saw this year was the release of the draft plan for comprehensive tax reform released by retiring House Ways & Means Chair Rep. Dave Camp (R-Mich.). This proposal included some positive strides towards a better working tax code for all Americans. Besides simplifying the tax code with an enhanced standard deduction, there was also a framework that replaces seven brackets of income tax with three and reduces the to rate from 39 percent to 35 percent while also taking down the corporate tax rate to 25%. Hopefully we’ll move forward on tax reform in the new Congress! Click here to read prior posts about tax reform.

House Defense Authorization

Each year Congress works on and (eventually) passes a National Defense Authorization Act (NDAA). Earlier this year in the Spring, the House moved forward passed their version of NDAA.  There were actually a few treats for taxpayers as the legislation made its way through the lower chamber. First, TPA applauds the transparency the House has adopted by having at least a limited amendment process that has an open debate so everyone can see what is and is not being included. There were also some amendments that were good for taxpayers too and you can find that analysis here. Click here to read more about what TPA has done on the NDAA.

Intellectual Property

The importance of having strong Intellectual Property laws and reforming the patent system is key for economic growth as the United States continues to drive innovation in a global economy. TPA was encouraged earlier this year when the treat of new movement on patent reform legislation seemed to be picking up momentum in a key Senate committee. TPA signed onto a coalition letter this year urging reform and there is hope that more will be done in the new congress to reignite the momentum on patent reform and keep our IP laws up to date in an evolving world economy. Click here for more on TPA’s work regarding Intellectual Property.

STAVRA

More good news and treats for taxpayers this year as Congress moved forward on some important legislation that is crucial to reforming our outdated video marketplace rules. The passage of the Satellite Television Access and Viewer Rights Act (STAVRA) in the Senate Commerce Committee gave way for moving forward in the Senate toward updating the Communications Act. TPA applauds the efforts of those involved and while Retransmission consent is not a widely discussed issue outside of those working within the telecommunications space, it is extremely important to how Washington will update our telecom rules. Click here to read more from TPA about Retransmission.

TRICK & TREAT

Internet Access Taxes

Our last piece of candy for taxpayers is a trick and a treat! It is critical to make the moratorium on those taxes permanent. TPA took to the streets of Washington D.C. to talk to Americans from all over the country about the possibility of increased taxes (watch here). Well, they got a treat and a trick from Congress! In the continuing resolution passed in September, Congress extended the moratorium (which was to expire in November) to early December. While TPA is glad taxpayers won’t face new taxes in November from accessing the internet, the trick still remains as the moratorium will expire in less than six weeks! Click here for more on what TPA is doing on Internet Access Taxes.

That’s our list of Taxpayer Tricks and Treats for 2014 everyone!! Several things to smile about, but many things to look out for as Washington will certainly be thinks of more ways to play tricks on taxpayers even after Halloween is over!