Anthony Wiener is Running/Streaking for Mayor of New York City

Mark Sanford won redemption and a seat in Congress a few weeks ago. Anthony Wiener, the former Congressman, is now seeking redemption and election as Mayor of New York City. Don’t go there! Don’t write about it? What can you add that New Yorkers haven’t said and punned? Probably nothing. But then came Wednesday’s Pittsburgh mishap. One problem is that Congressman Wiener cannot use “I Love New York” as his campaign theme. He sought counseling after the 2011 “problem” – in Texas. Anthony Weiner’s campaign, just two days out of the starting block, crossed the line, went nowhere a New Yorker has ever gone – not New jersey, but Pittsburgh. He ran an ad, standing in front of a cityscape – of Pittsburgh. “I Love Pittsburgh doesn’t cut it in New York.” Andrew Carnegie left Pittsburgh for New York City. Andrew Mellon went out to Long Island. New Yorkers love the bold and brash, the in your face attitude. Weiner has the cojones. Why can’t the state that gave us Eliot Spitzer give us Anthony Wiener? He is the only candidate for Mayor of New York, perhaps the only candidate in American history to serially sextext strangers. Even Bret Favre focused on one woman. How’s this for a campaign slogan: “A Naked Mayor for the Naked City.” We worry about the sincerity of politicians. No problem with Weiner – he’s totally transparent. He’s got nothing to hide – the only candidate who has let it all hang out, on the internet no less. He did initially lie, that is, misstate the origin of the Wiener Tweet, but he has seen the light. He seeks redemption. He offers the Big Apple the Full Monte. The ex-Congressman is campaigning for the middle class. He vowed to make New York City “The middle class capitol of the world.” He started by moving from working class Queens to a luxury apartment on Park Avenue. His focus is on the “outer borough strip centers.” The unabashed liberal’s suggestion for more affordable housing in New York is to tax multi-million dollar housing. He’s running hard. He does nothing half-ass, perhaps bare assed, but not half-ass.

Does Anyone in the Obama Administration Know Anything About Anything?

The critical question in Watergate was “What did they know, and when did they know it?? The IRS Hearings tell us that no one knew nutting about nutting – this ten days after Eric Holder, the Attorney General, answered “I don’t know” to many questions about the Associated Press taps. He knew nutting about nutting. Susan Rice in her 5 TV appearances on the Benghazi attacks toed the line of the “talking Points” even though they were false. Either she knew they were wrong or blithely ignored all the evidence to the contrary. Lois Lerner knew something, but she took the Fifth earlier today after proclaiming her innocence. White House Spokesman Jay Carney said several times last week that no one in the White House knew about the IRS transgressions. The phrase that arose out of Watergate was “Prior statement inoperative.” Douglas Shulman, retired Commissioner of the IRS, testified before Congressional Committees on the IRS targeting of conservative organizations: “This happened on my watch, but I do not accept responsibility.” He referred the matter it to the Inspector General, J. Russell George, when he heard there might be a problem, but never followed up with the Cincinnati office or attempt to stop the targeting. His answer earlier today to Congress on why he didn’t notify the House in testifying or responding to Congressional inquiries: “At that point I didn’t have anything accurate. I didn’t have a full set of facts to come back to Congress or the Committee with.” Of course, he made no effort to determine the facts. He willfully blinded himself. Deposed Acting Commissioner Steve Miller has testified to the same effect. They knew nothing, except they know it was not political, just like Lois Lerner proclaimed her innocence of any crime but took the Fifth. Does anyone, except Steve Miller, think the agency’s misconduct was the unilateral act of two rogue agents? The Secretary of the Treasury, the Deputy Secretary of the Treasury, the Counsel to the President, the Chief of Staff, and other aides knew of the Inspector General’s investigation of the IRS targeting of conservative groups, but they claim to know nothing of the details (we think). The brilliant President, of course, knows nothing. Plausible deniability is the operating criteria. The President claims to be shocked by the IRS revelations, just as he claims to support the First Amendment and Freedom of the Press. The President of a transparent administration runs an opaque administration except when he can take credit. Elections are won by maximizing your turnout while minimizing your opponents. The IRS was acting to suppress the Tea Party and other conservative organizations prior to the 2012 Presidential Election. The second step in May 2012, as knowledge of the targeting was starting to bubble to the surface, was to put the lid on through the election, just as Watergate did not blow until after President Nixon was safely reelected in 1976. No one involved has said that yet, but someone will. No one in the White House knows anything about that. The IRS officials come across as A) The Three Stooges B) Ostriches with their heads in the sand C) The Three Evils: “Hear no evil. Speak no evil, See no evil.” D) Perjurers Here are the possibilities: At best they willfully blinded themselves to the obvious. Then again, perhaps an innocent explanation exists for Shulman and Miller. We are looking at the faces of nameless, faceless career bureaucrats who rise by not making waves. The motto is “To get along, you go along” as you slowly, inexorably rise to the top as the Peter Principle works itself out. And then when you become Commissioner, you kick any problems down the road, such as to the Inspector General. You do not rock the boat. Too many people knew for two years through 4 separate IRS offices going into the 2012 Presidential Election of the IRS Campaign. They're playing dumb and dumber because they know the IRS intentionally targeted conservative political organizations, whether it was a low level decision local decision, came out of D.C headquarters,or is linked to the White House or reelection office in Chicago, remains to be seen., Here’s one fact we know. Lois Lerner’s husband is a partner in a law firm that did fund raising for President Obama. Someone will talk. The pressure cooker is about to blow on IRSGate.

The Tax Assault on Apple for Being Successful

Apple, thanks to the late Steve Jobs’ brilliance, has become the most successful technology company in the world. Apple has enriched America, Silicone Valley, and consumers. Apple has been successful, selling an essentially commodity product at a luxury price. Investors have been rewarded. It has amassed a cash horde of over $148 billion, of which 2/3 is overseas. Apple is the leader in one of the few industries in which America remains a leader in the global economy. Success has a price though. No good deed goes unpunished and seemingly every great American success story, especially if an economic success, needs to be trashed. Success arouses jealously in those less successful and draws out the demagogy in politicians. Apple pays little in income taxes. Its products are manufactured offshore and hence pass through several offshore corporations, often in Ireland. The transactions are structured to minimize the corporation’s tax bite. $74 billion in profits was parked overseas between 2009 and 2012. Once again it has outshined its competitors in offshore profits. All of which is legal under current United States tax laws. As long as the profits technically remain offshore, they are not subject to U.S. income taxes. The tax rate is 35% if they are repatriated to the US. Amazon, Google, HP, Microsoft, and Starbucks engage in the same “gimmicks” and “schemes” Apple has not pioneered the aggressive interpretation of the tax laws to minimize its taxes. Indeed, Apple has not been a industry pioneer since Steve Wozniak designed the first Apple computer, a true pioneer in the micro computer industry. Steve Jobs’ genius was to see the technology before his competitors, starting with the mouse. He instilled quality and design into his designers. The underappreciated MP3 became the IPod and the ITouch, the smart phone became the IPhone, a smaller tablet emerged as the IPad. All of these, plus the traditional Apple computers, took advantage of ITunes, his creative genius at work. For this, Senator Carl Levin (D Mich) pilloried Timothy Cook earlier today at a Senate Hearing. Senator McCain (R Ariz) is also outraged. He calls Apple the “most egregious offenders” as one of the “largest tax avoiders.” Apple’s Tim Cook simply replied that Apple pays all the taxes it legally owes, $6 billion in corporate income taxes for 2012, an effective tax rate of 30.5%. The Apple tax ploy is unfortunately unavailable to those of us who live on a salary, reported to the IRS, or companies whose business is mostly in the United States. Apple also, pursuant to generally accepted accounting principles, declares higher taxes on its shareholder reports than it actually pays to the IRS - again perfectly legal and common in the business world. Apple has decided to return $100 billion to shareholders in upcoming years through dividends and stock buybacks. It will not do so by bringing the overseas dollars back to the US, but by selling $17 billion in bonds, the interest on which is tax deductible, reducing Apple’s future tax bill to the IRS. Only with the screwed up corporate tax policy in the US does such an irrational corporate financial scheme make sense. Congress can always change the tax laws, such as by lowering the tax rate on corporate profits repatriated to the United States, but that would be “unfair” to the President and his accolades, who would prefer to redistribute, even if there is nothing to redistribute.

The Timeline, to Date, of the IRS Targeting of Conservatives

So many scandals; so little time! How can one keep track of the Obama Administration second term travails? Fast and Furious, Benghazi, the AP/Fox News reporters, and now the IRS? Let’s start with the IRS and the Tea Party. The timeline explains a lot, but is only “tentative” in the sense that more keeps dribbling out daily as the President and his aides continue to fumble the response. By way of background, most of the non-profit applications were assessed in the Cincinnati Office of the IRS by the Exempt Organizations Division with difficult calls going to the Determinations Unit. Some applications were also processed by offices in Washington, D.C., El Monte and Laguna Niguel, California. March 31, 2010: Colleen Kelley, President of the National Treasury Employees Union (IRS workers), met with President Obama at the White House. The Determinations Unit of the IRS in Cincinnati then proceeded to develop criteria for singling out certain groups. Coincidence? Wouldn’t you like to hear a tape of their discussions? May 2010: The Determinations Unit began developing a BOLO (“Be On the Look Out”) criteria for special treatment. June 2010: The IRS started teaching “specialists” on issues to be aware of, such as the Tea Party July 2010: Requested specialists to be on the lookout for Tea Party cases August 2010: Distributed first BOLO list with the Tea Party on it September 2010: Senator Max Baucus (D Mont), Chair f the Senate Finance Committee, writes to IRS Commissioner David Shulman requesting the IRS survey any non-profit engaged in political or campaign activity February 2012: Democratic Senators Charles Schumer, Michael Bennett, Al Franklin, Jeff Markley, Jeanne Shaheen, Tom Udall, and Sheldon Whitehorse write a similar letter to Commissioner Shulman. June 2011: Determinations Unit added “Patriot” and “9/12 Project “to the BOLO June 29, 2011: Lois Lerner, Director of the Exempt Organizations Division based in D.C., was notified of the BOLO. She claims to have asked for the criteria to be revised. (Lois’ name will reoccur often in the timeline) July and August 2012: Senator Carl Levin complained to the IRS about its apparent passivity January 2012: Cincinnati started sending our exhaustive, extensive, and often illegal questionnaires to be filled in by 170 targeted organizations. 27 asked the applicants to disclose their donor list. January 25, 2012: The BOLO criteria was revised to: “Political action type organizations involved in limiting/expanding government, educating on the Constitution and Bill of Rights, social engineering reform/movement.” Reread this criteria carefully. The IRS singled out applicants who wished to educate Americans on the Constitution and Bill of Rights. March 2012: The Human Rights Campaign and the Huffington Post published confidential tax documents from the National Organization for Marriage. PrPublica requested the applications of 67 non-profits. The IRS responded, with 31 applications, including the applications of 9 conservative groups whose applications had not yet been approved and hence legally were to remain confidential. ProPublic published 6 of them. March 2012: Congressman Darrell Issa (R Ca), Chair of the House Oversight and Government Reform Committee, and Congressman Jim Jordan (R Ohio), asked Lerner for a list of the organizations that had been subjected to special treatment. She refused, quoting Section 6104(a) of the Taxation Code that provides only the applications of organizations that have ben granted tax exempt status are subject to disclosure. And yet the IRS in the same month disclosed confidential information to ProPublica. April 26, 2012: Lerner writes the Agency is trying “to promote consistent handling” of tax exempt applications. IRS agents used “sound reasoning based on tax law, training, and his or her own experience.” May 3, 2012: Steve Miller, Deputy Commissioner, learns the agency had singled out groups by name.. He was told that some applications for tax exempt status were improperly selected for extra attention. Dave Shulman, IRS Commissioner, was also informed of the activities. June 15, 2012: Miller letter to Congress: The IRS “took steps to coordinate the handling of cases to ensure consistency” in response to an increase in applications. July 25, 2012: Miller in testimony before Congress fails to inform it of the agency’s targeting of conservative groups. November2012: Deputy IRS Commissioner Miller appointed to Acting Commissioner March 15, 2013: Treasury Secretary Jack Lew was told by the Inspector General that an “audit” was forthcoming. Secretary Lew, who did not know how much was in his offshore bank account, should not be confused with his predecessor, Timothy Geithner, who blamed his tax cheating on TurboTax. Treasury officials were provided a draft of the IG’s Report. May 8, 2013: Lerner testified before a Congressional Committee. Representative Joseph Crowley (D. NY) about the status of 501(C)4 organizations. Her response was bland with no mention of the impending IG Report. Representative Crowley believes he was lied to and wants Lerner fired. May 10, 2013: Lerner disclosed and apologized for the targeting of conservative groups at an ABA Tax Conference. She blamed it on “low-level” employees. Steve Miller blamed it on two rogue employees who have been disciplined. We learn last next week that Lerner had planted the question with a friend, Celia Roady. Lerner and Miller had decided to get ahead of the Inspector General’s Report, which they knew would be issued soon. May 16, 2011: Joseph Grant, Deputy Commissioner of Tax Exempt and Government Entities, announces his resignation, effective June 3, 2013. May 17, 2013: Deposed Acting IRS Commissioner Steven Miller testifies before the House Ways and Means Committee, displaying both incredible arrogance and insulting our intelligence. A classic statement is ”I can say, generally, we provided horrible customer service here.” He declaimed any political motivation by the IRS employees: “I think that what happened here was that foolish mistakes were made by people who were trying to be more efficient in their workload selection.” President Obama holds a press conference, appropriately in the rain, with Turkey Prime Minister Erdogan. The President is asked if White House officials knew of the IRS targeting of conservative organizations. His response was non-responsive: “I knew nothing about the IG Report before it was leaked to the press.” So far the President has plausible deniability. May 20, 2013: Glenn Kessler of the Washington Post awards 4 Pinocchios to Los Lerner for her misstatements about the surge in applications by the political advocacy organizations. Contrary to Lerner’s statement, the surge in applications did not occur until 2011, after the Determinations Unit started the BOLO. May 19, 2013: White House Senior Aide Dan Pfeiffer on 5 TV shows said the White House did not know the details of the investigation or its conclusions until its release on May 14. May 19, 2013: The New York Times runs a full page article attributing the IRS’ problems on understaffing combined with a substantial increase in applications. May 20, 2013: Jay Carney acknowledges to reporters that White House officials knew of the Inspector General’s review earlier than previously disclosed (by Jay Carney). A staffer of White House Counsel Kathryn Ruemmler learned of the investigation during the week of April 16. Ruemmler was informed on April 24, and then notified the White House Chief of Staff, Denis McDonough, and other aides of the findings of misconduct by “a small number of IRS employees.” Jay Carney still claims President Obama did not know of the IRS’s actions until the news reports came out. Chicago Rules Open dates: When will Lois Lerner be thrown under the bus? When will the White House become aware of what the White House was aware of? Will President Obama adopt the Truman credo: “The Buck Stops Here”? When will the President be forced to appoint a special prosecutor?

This is Not Your Grandfather's Watergate

Some prognisticators and commentators are bring up Watergate. Some conservatives are embracing the idea. Let’s recognize reality: Fast and Furious, Benghazigate, APgate, and IRSgate, will not result in the removal of President Obama from office. Yet, the scandals of President Obama are as great as though of President Nixon. Obama’s Chicago Rules are more sophisticated and heavy handed than Nixons’ Dirty Tricks. Both wanted to win reelection at any cost. Both had a enemy’s list with President Obama’s avowed enemies including conservative media voices, such as Rush Limbaugh, Sean Hannity, and Fox News. Nixon wanted to use the IRS to go after political enemies, but the IRS Commissioner balked. Obama’s IRS ramped up to warp speed against conservative organizations. President Nixon’s ace in the hole was Vice President Spiro Agnew. He didn’t realize that VP Agnew would be tossed from office before President Nixon. President Obama’s ace in the hole is Vice President Joe Biden. He’s not going anywhere. President Nixon faced overwhelming Democratic majorities in both the House of Representatives and the Senate. President Obama faces a Republican House, but a strong Democratic Senate, at least until 2014. Watergate involved massive campaign violations, but President Obama’s prolific fund raising is not illegal. The mainstream media loves President Obama. They may be engaged in a shot term lover’s spat, but their love will last. The media loathed President Nixon; the hatred was mutual. Watergate was pursued by Carl Bernstein and Bob Woodruff of the Washington Post. The Washington Post and New York Times are not going to run President Obama out of the White House. The Post had “Deep Throat.” Is there a Deep Throat in the current White House? President Nixon secretly recorded White House conversations. These tapes were the final nail in the President’ political coffin. The odds of finding a “smoking gun,” hardcopy, digital, or video, against President Obama are fairly slim. He is a hands-off manager, preferring to spend his time golfing and fundraising. President Nixon tried to staunch the bleeding by tossing John Ehrlichman and H.R. Haldeman under the bus, while John Dean voluntarily jumped. President Obama will throw trusted advisors under the bus if necessary, but he can rely upon Eric Holder as Attorney General to block any meaningful inquiries. The Attorney’s General’s recent responses to Congressional inquiries is “I don’t know.” President Nixon was forced to accept an independent counsel. Congress will be unable to force one unto President Obama, even if the Republicans control both houses of Congress after the midterm elections. President Nixon was never personally liked and popular. President Obama maintains his personal popularity with the American public. “Tricky Dickie’s” reputation caught up to him. Vietnam and the draft were an albatross around President Nixon’s neck President Obama faces no such socially divisive issues.

Robin Hood and His Merry Men versus Keene and its Meter Maids

Keene is a beautiful city of about 23,500 in New Hampshire. Like most cities, large and small, it derives substantial revenue from parking meters in the downtown area, and the parking tickets issued for not paying the meter. The state motto of New Hampshire is “Live Free or Die.” A few residents of Keene are living up to the state motto. They are part of the Free Keene group. They’re also known as Robin Hood of Keene or Robin Hooders. Either they have found their meaning in life, or they have nothing better to do in the idyllic Connecticut River Valley of New Hampshire. They patrol downtown Keene looking for cars parked at expired parking meters. They then reach into their pockets and feed the meter, leaving a card on the windshield wipers: “Your meter expired; however, we saved you from the king’s tariff’s, Robin Hood and his Merry Men. Please pay it going forward.” They also provide a mailing address to send contributions. They claim to have forestalled the issuance of 4,000 parking tickets. They are especially elated when they can get to a meter before the three Keene parking enforcement officials, also known as meter maids, reach the vehicle and issue a ticket Keene, or at least its officials, are upset at this public act of rebellion. There’s not much they can do about it directly. Also frustrated are the three meter maids. Keene filed suit against six Robin Hooders, accusing them of taunting and harassing the not so merry meter maids. The language used in the encounters may or may not include some old Anglo Saxon expletives. The slings and arrows are verbal, pointed and sharp. The not so merry meter maids complain of emotional distress, but care not of the emotional distress they inflict on the owners of the cars they ticket. The meter maids versus the Robin Hooders is not a friendly rivalry. Robin Hood versus Prince John and the Sheriff of Nottingham is more like it. Both sides are using video cameras to record the festivities. Santa Claus traces back to the 4th Century, but history tells us naught of the historic Robin Hood – so little in fact that we know not if Robin Hood ever existed. The video camera will probably tell us more than we ever want to know of the modern Robin Hoods. The named defendants do not include Robin Hood, Robin of Loxley, Friar Tuck, Little John or Maid Mariam. The city seeks injunctive relief prohibiting the Merry Men of Keene from getting within 50 feet of the not merry meter maids of Keene. The effect of the injunction would cripple the Robin Hooders since it is often a race to the meter between the opposing forces. The moving fifty feet exclusionary zone would give the meter maids an insurmountable head start in the small town. Robin Hood won his war with authority. The Robin Hooders have a good chance of winning theirs.

LAMTA Says Angelenos are not Angels

The Los Angeles County Metropolitan Transportation Authority says MTA Says Angelenos are not Angels Los Angeles is the City of Angels. Los Angeles is the post World War II metropolis of the automobile. Detroit built the cars, but LA drove them. Even the fabled surfers carried their surfboards to Malibu on Woodys. Los Angeles abandoned the last of its 1,000 interurban rail system in 1963, The Red Cars had their last ride except in a Disney movie. The Pacific Electric Railway of Henry Huntington defined the Los Angeles basin. Cars and surf were the Beach Boys and Jan and Dean. Freeways, traffic, and Sig Alerts are the LA Culture. Unknown to the world, Los Angeles has had a nascent subway system since 1993 when 4.5 miles of a new Red Line and 5 stations opened. The city now has 88 miles of subway and light rail linking downtown to Long Beach and Pasadena. The Los Angeles County Metropolitan Transportation Authority was so desperate to lure Angelenos out of their cars into subways that the stations were built without turnstiles. Riders were on the honor system. The absence of locked gates and turnstiles gave rise to a generation of free riders. The chances of being busted for riding without a ticket were so small that up a majority of the 360,000 daily riders risked the $250 fine, which in turn is often unenforced. The idea of getting a free ride from the government is irresistible in the City of Angels. The MTA is so disappointed with the lack of honor by the otherwise green riders that it is spending $46 million to install the new electronic, gated system and $103,000 monthly to maintain – all to collect a $1.50 fare. It might not pay for itself, but riders will now be green with honor. Let’s think about Los Angeles and integrity and the honor system. Mayor Villaraigosa, the $100,000 moocher of complimentary tickets to games and concerts, has touted “LA’s Subway to the Sea,” although the subway is planned to end at the VA Hospital on Veterans Ave., near the 405 and a long, dangerous 3 mile walk to the sandy shores and waves of the Pacific. Los Angeles is Hollywood, which supports a league of attorneys and accountants to audit the entertainment companies as they attempt to cheat actors, directors, writers, agents, and musicians out of their rightful royalties and percentages. Los Angeles is the Walt Disney Company, which attempted to copyright “Seal Team Six” and “Dia de los Muertos.” Los Angeles is a city which issues $63 tickets for parking at broken parking meters. The ticketing is worth about $5 million annually in the city’s coffers. Los Angeles has now installed new electronic meters to replace the old mechanical meters. The new meters automatically revert to a zero balance when a parked car backs out. Los Angeles municipalities have a large number of municipal officials, both elected and appointed, under indictment for various forms of corruption and breaches of the public trust. Finally, let us recognize that New York City issued new tokens when it increased subway fares. It knew from experience that if it continued with the old tokens, new Yorkers would invest thousands in them to beat the fare increase. It eliminated the problem when it went to electronic fares. That’s New York; this is LA, but freeriders are a universal phenomenon.