BUSH'S IRS GOES AFTER POOR FOLKS

You've gotta love the consistency of the Bushites. When they ram through their multibillion-dollar tax giveaways, it's the superrich and corporations that gain. And when they unleash their IRS to look into tax cheating, they don't probe the tax shelters of millionaires or the multibillion dollar offshore tax havens of corporate finaglers – instead, they go after the working poor who're entitled to tax credits of only a few hundred bucks each.
Archive You're reading an older Hightower Lowdown article. Jim's still writing — twice a week on Substack.
Jim Hightower's Radio Lowdown
Jim Hightower's Radio Lowdown
BUSH'S IRS GOES AFTER POOR FOLKS
Loading
/

You’ve gotta love the consistency of the Bushites. When they ram through their multibillion-dollar tax giveaways, it’s the superrich and corporations that gain. And when they unleash their IRS to look into tax cheating, they don’t probe the tax shelters of millionaires or the multibillion dollar offshore tax havens of corporate finaglers – instead, they go after the working poor who’re entitled to tax credits of only a few hundred bucks each.

With Bush & Co., them that’s got is them that gets… and everybody else should watch out! That’s the hard lesson learned by some 1.6 million low-income workers who have not only had their tax refunds frozen in the past five years, but also have had their tax filings officially labeled “fraudulent” by the IRS. This crackdown on the poor has allowed Bush to claim that, by gollies, he’s tough on tax fraud.

Enjoying Hightower's work? Join us over at our new home on Substack:

But the IRS’s own inhouse taxpayer advocate, Nina Olson, says – wait a minute – she and her staff analyzed the returns of these accused poor folks and found that two-thirds of them were actually entitled to the tax credit they sought…. or entitled to even more money. Another 14 percent were due at least a partial refund, and of the remaining 20 percent, almost none had committed fraud, but instead had simply been confused by the complicated tax forms and made honest errors.

By the way, the average income of these supposed tax deadbeats was only $13,000. The great majority were working parents who were using the earned-income tax credit, which was first advocated by the laissez-faire guru Milton Friedman and first implemented by Ronnie Reagan. But now these good folks are being browbeat by the Bushites for crass political gain.

This is Jim Hightower saying. If you’re a corporate tax cheat, the Bushites and their congressional henchmen look the other way – but if you’re a working stiff, you’re presumed to be a fraud… and the IRS comes down on you.

Sources:

“Guilty Until Proven Innocent,” The New York Times, January 20, 2006.

“I.R.S. Move Said to Hurt the Poor,” The New York Times, January 11, 2006.

“A tax offensive against folks without money,” January 16, 2006.

Keep reading Jim
Get the free Lowdown
Jim's twice-weekly commentaries delivered free to your inbox. No credit card, no catch.
No credit card. Unsubscribe anytime.
Go deeper
Get everything Jim's got
Live Q&As, the Chat & Chew series, radio archives, and more. Less than a cup of coffee a month.
Subscribe for $40/year
Special rate for original Lowdown readers
Regular price: $50/year
Jim Hightower's Lowdown
The Lowdown moved —
Jim didn't stop writing.

Get Jim's commentaries delivered every Tuesday and Thursday — free, to your inbox. Join 50,000+ readers.

Get the free Lowdown →
or go paid
Subscribe for $40/year
Special rate for original Lowdown readers — regular price $50/yr