Editorial -- A Deathbed Conversion?

The Inflation Reduction Act, which is a watered down version of the Build Back Better Act that the Democrats touted when they first took power, miraculously passed the Senate recently. It is expected to pass the House and be signed into law. It will create incentives to fight climate change through clean energy tax credits, a green bank, and incentives to plug methane leaks. 

There will also be healthcare reforms in the measure. Protecting human lives is always a good thing. And there will be measures in it to reduce the deficit, important since inflation, although it has eased recently, is still there and gas prices are still too high.

No, the Democrats did not just save civilization. But they finally, belatedly, woke up and realized that there was more to life than just sticking it to the Russians.

We’re all called to stewardship of God’s resources. You can’t love the creator and hate the creation. If you hate the creation, then you hate the creator who made it. Jesus’ parables made consistently clear time and time again that we would be judged based on how well we were stewards of his creation. So anything that helps prevent the planet from overheating is a good thing. 

This measure will undoubtedly help the Democrats at the polls this year. But will it help enough? 

The problem with the bill is that it doesn’t go far enough. Last year, the International Energy Agency said fossil fuel development must stop in order to meet emissions targets. The bill will allow more oil and gas lease sales on public lands and waters. This means more spills and accidents waiting to happen on fragile ecosystems that cannot afford it.

The positive side of this bill is that maybe the Biden Administration, for once, is on to something – you’re much more likely to get meaningful legislation passed by carrots and not sticks. Maybe we could apply this to other issues. On abortion, for instance, maybe we could focus on passing legislation that helps make every child a wanted child and that rewards motherhood; after all, Missouri has a near total abortion ban, but women can still go to other states to get one.

And maybe the way to conduct diplomacy is through carrots and not sticks. Ever since Russia began its “Special Military Operation” on February 24th, the US policy has been to try to stick it to the Russians. That hasn’t worked. All that has happened is that Putin has dug his heels in and is more entrenched in power than ever. If sanctions were an effective tool, we would have resolved the North Korea conflict decades ago.

You have to be careful in how you go about transitioning to a green economy. The danger is that many jobs will be lost and many families destroyed, many more women will get abortions, and many communities decimated if it is not done right. However, it turns out that, according to a working paper from the National Bureau of Economic Research published this month that green jobs are frequently created in counties that have high shares of employment in fossil fuel extraction. Green jobs are also created in occupations that are about 21% higher paying than average. 

On the healthcare side, there are some meaningful measures passed as well. One of the most obvious measures, one of the most common sense, and consequently, one most strenuously resisted in Washington is the notion that Medicare should be able to negotiate prescription drug prices. That measure is finally on the books. Other measures on the Inflation Reduction Act include limiting Medicare drug price growth to inflation, and limiting commercial drug price growth to inflation.

About $125 billion in taxpayer money would be raised though improving tax compliance. The IRS would be funded by $80 billion over the next ten years, which, according to the CBO, would result in an additional $204 billion over the next 10 years. The CBO estimates every dollar spent to reduce the tax gap would generate $2.50 of revenue.

On July 29th, the Penn Wharton Budget Model came out with an estimate saying that the Inflation Reduction Act would reduce non-interest cumulative deficits by $248 billion over the budget window. 

More work needs to be done. Much of the social spending in the original BBB Act that Joe Manchin tanked – child tax credits, universal pre-K, and more – would have helped with the goal of making every child a wanted child. That is well worth the price of investment and one likely to give a big return.

Fact Check -- Gary Johnson on Obamacare

Gary Johnson's latest video attacking Obamacare is here:
Johnson claims that Obamacare will hire 16,000 IRS agents to enforce his bill, but not one doctor. But this repeats a claim on right-wing talk radio that is not true. *** The Congressional Budget Office estimated that the IRS would need $5 to $10 billion over ten years for administrative costs. This money is not for enforcement and hiring agents to break down peoples' doors like Johnson's ad implies, but for giving subsidies for qualifying small businesses and individuals money to buy health insurance. *** As this article by Ezra Klein notes, the 16,000 is just an extrapolation from the CBO figures. *** It is true that people who do not get health insurance starting in 2014 will be subject to a tax. But IRS Commissioner Douglas Shulman testified before Congress under oath that the IRS will not be auditing individuals to make sure that they have gotten insurance. *** Also, on page 131, the Affordable Healthcare Act specifically prohibits the IRS from using liens and levies that they typically use to collect money owed by delinquent taxpayers. There will be no criminal prosecutions of persons who do not pay. *** As for proof, when you get or have health insurance, the entity providing the insurance will file a report with the IRS proving that you have health insurance under this act (Page 132). *** We have a copy of the Affordable Healthcare Act downloaded and the Sheridan Express will email copies of the bill free on request. Send requests to express@grm.net. It is 906 PDF pages long. *** If you have any questions about the act itself, please do not hesitate to contact us and we will try and get answers.

John Edwards Indicted for Concealing Campaign Contributions

A federal grand jury today returned a six-count indictment against former U.S. Senator and Presidential candidate John Edwards for allegedly participating in a scheme to violate federal campaign finance laws, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney George E.B. Holding for the Eastern District of North Carolina.

The indictment, returned in the Middle District of North Carolina, charges Johnny Reid Edwards, 57, of Chapel Hill, N.C., with one count of conspiracy to violate the federal campaign finance laws and to make false statements to the Federal Election Commission (FEC); four counts of accepting and receiving illegal campaign contributions from two donors in 2007 and 2008; and one count of concealing those illegal donations from the FEC. Edwards is scheduled to make his initial appearance in federal court in Winston-Salem, N.C., at 2:30 p.m. EDT before U.S. Magistrate Judge Patrick Auld.

“Today, a federal grand jury returned a six-count indictment against former Senator John Edwards for violating federal election laws during his campaign for President of the United States,” said Assistant Attorney General Breuer. “Mr. Edwards is alleged to have accepted more than $900,000 in an effort to conceal from the public facts that he believed would harm his candidacy. As this indictment shows, we will not permit candidates for high office to abuse their special ability to access the coffers of their political supporters to circumvent our election laws. Our campaign finance system is designed to preserve the integrity of democratic elections – for the presidency and all other elected offices – and we will vigorously pursue abuses of the kind alleged today.”

“Democracy demands that our election system be protected, and without vigorously enforced campaign finance laws, the people of this country lose their voice,” said U.S. Attorney Holding. “The U.S. Attorney’s Office and the Department of Justice are committed to the prosecution of individuals who abuse the very system of which they seek to become a part.”

“Public servants are held to the same laws as everyone else in this country. The position sought does not exempt anyone, even those running for President of the United States,” said Chris Briese, Special Agent in Charge of the FBI in North Carolina.
“Public officials hold positions of trust and get no free pass to ignore the law,” said Victor S. O. Song, Chief, Internal Revenue Service (IRS) Criminal Investigation (CI). “Today’s indictment demonstrates IRS’ commitment to work with our law enforcement partners to ensure our public officers remain trustworthy and adhere to the highest levels of integrity.”

According to the indictment, while a candidate for President of the United States, Edwards conspired with other individuals to accept and receive campaign contributions in excess of limits imposed by the Federal Election Act in an effort to protect and advance his candidacy from disclosure of an ongoing extra-marital affair and the resulting pregnancy. The indictment alleges that between 2007 and 2008, Edwards accepted and received more than $900,000 as part of this effort.

The Federal Election Act limits the amount an individual may contribute to any candidate for federal elected office in order to limit the influence any one individual may have on the outcome of a federal election. The Federal Election Act established that the most one individual could contribute for the 2008 presidential primary election was $2,300. According to the indictment, the Federal Election Act’s contribution limit applies to anything of value provided for the purpose of influencing a federal election, including contributions to a candidate and his/her campaign; expenditures made in cooperation, consultation or concert with, or at the request or suggestion of, a candidate or his/her campaign; and payments for personal expenses of a candidate unless those payments would have been made irrespective of his/her candidacy.

The Federal Election Act, according to the indictment, also requires each presidential campaign committee to file periodic campaign finance reports with the FEC, which are made available to the public. In these reports, the committees were required to identify each person who, during the relevant reporting period, contributed more than $200 to the committee, along with the date and the amount of the contribution. According to the indictment, these reports are intended to provide citizens with a transparent record of the amount and sources of all campaign contributions and to assist voters in making informed decisions at the polls.

According to the indictment, the payments at issue were used to facilitate Edwards’ extra-marital affair, and to conceal it and the resulting pregnancy from the public. The indictment alleges that the funds were used to pay for the living and medical expenses of the individual with whom Edwards was having the affair, and to pay for the travel and accommodations necessary to hide this individual from the news media and the public so that Edwards’ candidacy would not be damaged. According to the indictment, Edwards knew that the public revelation of the affair and pregnancy would undermine his image and force his campaign to divert personnel and resources away from campaign activities to respond to criticism and media scrutiny.

The indictment alleges that Edwards and his co-conspirators concealed the alleged unlawful contributions from the FEC and the public by causing the John Edwards for President Committee to file with the FEC false and misleading campaign finance reports that failed to disclose the illegal contributions.

A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Edwards faces a maximum penalty of five years in prison and a $250,000 fine on the conspiracy charge. He faces five years in prison and a $250,000 fine on each count of accepting and receiving illegal campaign contributions, and a maximum of five years in prison and a $250,000 fine on the charge of concealing the alleged illegal donations.

The case is being prosecuted by Assistant U.S. Attorneys Robert J. Higdon Jr. and Brian S. Meyers of the U.S. Attorney’s Office for the Eastern District of North Carolina, as well as Deputy Chief Justin V. Shur and Trial Attorneys David V. Harbach II and Jeffrey E. Tsai of the Public Integrity Section in the Justice Department’s Criminal Division. The case is being investigated by the FBI and IRS-CI.

IRS Scammers Trying to Steal Credit Card Numbers

The Missouri Department of Revenue reminds citizens that none of its employees will ever contact Missouri taxpayers to ask for credit card or debit card numbers.

The Department recently received a report that a citizen received a call from someone who represented himself as “representing the state of Missouri.” The phone caller stated that he had an “income tax rebate” for the citizen, but that he would need the citizen’s credit card number and expiration date to complete the transaction.

“No employee of the Missouri Department of Revenue will ever contact someone to get a person’s credit card number to process an income tax refund,” said Alana M. Barragán-Scott, the Department’s director. “Scam artists sometimes falsely represent themselves as agents of the government in an attempt to get people’s confidential financial information. The Department urges citizens to ignore these dishonest, would-be thieves.”

If people have questions about tax refunds, they can call the Department of Revenue at (573) 751-3505 or email the Department at income@dor.mo.gov. To report a local scam, please contact the secure phone line at the Worth County Sheriff's Department at (660) 564-2222.

Choosing a Tax Preparer

If you pay someone to do your taxes, be careful. According to Dr. Rebecca J. Travnichek, Family Financial Education Specialist with University of Missouri Extension in Northwest Missouri, most tax return preparers are professional and honest, but some are not. Some preparers offer high-cost services or arrange refund anticipation loans that reduce refunds. Take the time to find a qualified tax professional. As a taxpayer, you are ultimately responsible for everything on your return no matter who prepared it. Consider using the tips below to choose a preparer who best meets your tax preparation needs.

• Ask about service fees. Avoid preparers who claim they can get larger refunds than others, those who guarantee results or those whose fees are based on a percentage of the refund.

• Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.

• Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.

• Do you qualify for free tax preparation services? Many communities have Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. Through these programs, volunteers provide assistance to low-income, disabled, homebound and English-as-a-second-language taxpayers. For more information on the VITA or TCE programs, and to search nationwide for free tax preparation sites in your area, visit http://extension.missouri.edu/hes/taxed/vitasites.htm

Taking time to do your homework can pay off by saving you money and helping you avoiding the headache of dealing with an unqualified or dishonest preparer. Report suspected tax fraud and abusive tax preparers to the IRS by calling 1-800-829-0433.

University Extension Offers Free Tax Preparation

University of Missouri Extension will provide tax-preparation and e-filing
assistance January 28 through March 4.
"If you are low- to moderate-income and in need of help with filing your
taxes, we will help you at no cost to you," said Dr. Rebecca J. Travnichek,
MU Extension family financial education specialist. "Tax returns can also be
prepared for high school and college students; as well as individuals and
families who do not own a business."
Dr. Travnichek is IRS-trained and certified and will be preparing tax forms
and providing e-filing for returns.
Individuals can begin making appointments immediately at a convenient
location near them. To make an appointment, call the MU Extension office
nearest you or call 816-324-3147. Individuals who leave a message after
hours will receive a return phone call.
Individuals should bring any W-2s, 1098 and 1099 forms. Birthdates and
Social Security cards for everyone who will be claimed on the tax return are
also necessary. "It's a good idea to bring anything you receive in the mail
that indicates it is tax related; as well as a copy of your last years' tax
return," Travnichek said.

Free Tax Assistance for Low to Moderate Incomes

The AARP Foundation is again providing free tax assistance and
preparation for taxpayers with low to moderate income through the AARP Tax-Aide
program. AARP Tax-Aide, in its 43rd year, is the nation's largest free tax
assistance and preparation service, giving special attention to people over age 60,
and will provide assistance through April 15. You do not need to be a member of
AARP or a retiree to use this service.

"Since 1968, AARP Tax-Aide volunteers have enthusiastically provided this service in
their communities," said Anita K. Parran, AARP Missouri associate state director for
Public Affairs. "This free, quality and confidential program also provides
year-round service and in some instances, volunteers can make visits in nursing
homes and other locations if taxpayers are physically unable to make a site visit."

Annually, an army of more than 33,000 volunteers, trained in cooperation with the
Internal Revenue Service (IRS), helps millions of taxpayers with the preparation of
their income tax returns at nearly 7,000 sites across the country. The Tax-Aide
program is offered at approximately 190 sites in Missouri including senior centers,
libraries and other convenient locations.

"I really enjoy volunteering for AARP Tax-Aide, particularly during these tough
economic times," said Lynn Boulware, AARP Tax-Aide state coordinator. "Tax law can
often be confusing, but AARP Tax-Aide volunteers can make the process of filling out
tax returns a whole lot easier."

Call toll-free 1-888-AARPNOW (1-888-227-7669) or visit www.aarp.org/taxaide to
locate an AARP Tax-Aide site near you.

AARP Tax-Aide is a program of the AARP Foundation, offered in conjunction with the
IRS.

McCaskill: Legislation will eliminate provision of healthcare law that overburdens small businesses

U.S. Senator Claire McCaskill is once again co-sponsoring bipartisan legislation to repeal the burdensome 1099 tax reporting requirement included in the healthcare law. The Small Business Paperwork Mandate Elimination Act, introduced by Senator Mike Johanns (R-NE), would eliminate the new requirement that businesses file forms to the IRS for every vendor with which they have at least $600 in transactions for purchases of goods. This provision created unnecessary costs and an unmanageable amount of paperwork for small businesses and has been one that both Republicans and Democrats quickly recognized needs to be changed.

“Removing this provision is an important way to support our small businesses as they focus on job creation, while opening a meaningful debate as to how we can improve our new healthcare law,” McCaskill said. “Because the law isn’t perfect, we can and will continue to improve parts to ensure it works for the American people.”

McCaskill has supported a repeal of the 1099 reporting provision that does not add to the deficit since last year, first cosponsoring a repeal provision offered by Senator Mark Begich (D-AK) and voting for a proposal by Senator Ben Nelson (D-NE). She also voted for a Johanns amendment that is identical to the newly proposed bill.

Take $200

No matter what your financial situation is, you can take $200 of your tax refund and set it aside in a savings account. According to Dr. Rebecca Travnichek, Family Financial Education Specialist with University of Missouri Extension, this savings account can be used as the beginning of an emergency fund, it can be added to retirement or to start an IRA, it can be used to pay down debt, or for any savings that is needed. A goal of the University of Missouri Extension Taxpayer Initiative and Northwest Missouri Saves Program is to get individuals and families in the habit of having a savings plan.

Visit your financial institution and set up several savings accounts before you file your taxes. By using tax form 8888, you can have your refund deposited in up to 3 accounts. These accounts can be a way for you to save, manage your finances, and to meet your financial goals. For example, you can have a savings account for a family vacation, increasing retirement, for making home repairs, or paying your property taxes. By depositing monies into these accounts at tax time you could then set a goal to add to them a little each month.

Dr. Travnichek will be preparing 2010 income tax returns for FREE at multiple locations across Northwest Missouri; as well as in Unionville (Putnam County) in Northeast Missouri. As part of the Volunteer Income Tax Assistance (VITA) program, she has been trained and certified by the IRS to prepare tax returns in order to assist low- to middle-income individuals and families. To make an appointment to have your 2010 income tax return prepared for FREE by Dr. Travnichek, contact your local University of Missouri extension center for additional information or contact the Andrew County Extension Center at 816.324.3147.