International Monetary Fund demands U.S. ‘repeal the sequester’

June 17, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement in response to a call from International Monetary Fund (IMF) Director Christine Lagarde for Congress to “repeal the sequester” because she says “the effect of the sequester and deficit reduction more generally are already affecting the economy… [by] shav[ing] 1.25 to 1.75 percentage points of growth”:

“Lagarde’s complaint that spending cuts lower GDP is simultaneously accurate and misleading, as government spending is proportionately included in the measure of the GDP. This is a bias of the first order in favor of government spending, because when government grows faster than the private sector, it appears to boost GDP and when spending is reduced, GDP appears to slow down. This is an illusion.

“The Bureau of Economic Analysis reports real growth annualized in the first quarter was 2.4 percent, but if government spending is excluded from the measure, the private sector grew by more like 4 percent. By that measure, the private sector is doing just fine even with sequestration.

“Moreover, it is only because of sequestration that S&P has been able to upgrade its outlook on the $16.7 trillion U.S. national debt from negative to stable. It is particularly insulting to taxpayers for the IMF to demand the sequester be repealed at the same time the Obama Administration has also asked for a $65 billion increase in the U.S. quota to the IMF. If anything, this is just one more reason the U.S. should defund the IMF in full.”

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Unemployed rises by 101,000 to 7.6 percent

June 7, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement on the latest job numbers:

“It is surprising that the number of people reporting they have been unemployed for five weeks or fewer jumped dramatically in May exceeding the level of one year ago.  Recent Labor Department weekly unemployment filings created the expectation that the number of recently unemployed should have stayed stable, consistent with an economy that seems to be treading water.  The jump in recently unemployed combined with the just released report showing significant decline in the manufacturing sector is just another indication that the five year old promise of economic recovery remains elusive.

“Today’s report just reconfirms the idea that the government cannot spend its way out of this economic malaise, and the only path to prosperity lies with ending the Obama Administration’s regulatory assault on the private sector job creators.”

To view online:

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

36 House Republicans uphold Davis-Bacon prevailing wages

June 6, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement blasting 36 House Republicans for defeating an amendment to an appropriations bill that would have repealed the 82-year old Davis-Bacon prevailing wages mandate for federal contractors:

“Prevailing wages demand that the U.S. Department of Labor set the cost for labor for federal government construction contractors rather than having the taxpayers get the benefit of competitive labor cost bidding. The impact of Davis-Bacon on increasing the cost of government has been so extreme that the 2012 Republican National Committee’s official platform called for its repeal.

“Yet when given the opportunity, 36 House Republicans broke their own party’s promise to do away with these requirements that unnecessarily cost billions of additional tax dollars every year. Apparently, the platform is not worth the paper it’s printed on.”

List of 36 House Republicans who voted no:

Barletta (PA-11)
Capito (WV-02)
Cook (CA-08)
Davis, R. (IL-13)
Duffy (WI-07)
Fitzpatrick (PA-08)
Gerlach (PA-06)
Gibson, C. (NY-19)
Grimm (NY-11)
Hanna (NY-22)
Heck, J. (NV-03)
Hultgren (IL-14)
Joyce (OH-14)
King, P. (NY-02)
Kinzinger (IL-16)
Lance (NJ-07)
LoBiondo (NJ-02)
McKinley (WV-01)
Meehan (PA-07)
Murphy, T. (PA-18)
Petri (WI-06)
Reichert (WA-08)
Roskam (IL-06)
Runyan (NJ-03)
Ryan, P. (WI-01)
Schock (IL-18)
Shimkus (IL-15)
Shuster, Bill (PA-09)
Smith, C. (NJ-04)
Stivers (OH-15)
Terry (NE-02)
Tiberi (OH-12)
Turner, M. (OH-10)
Upton (MI-06)
Walden, G. (OR-02)
Young, D. (AK-AL)

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

IRS targeting violated employee contract against political coercion

June 4, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement calling attention to a 2009 National Treasury Employees Union contract agreement that forbade political coercion at the Internal Revenue Service (IRS) and stated “Employees should be protected against arbitrary action, personal favoritism, or coercion for partisan political purposes; and prohibited from using their official authority or influence for the purpose of interfering with or affecting the result of an election or a nomination for election”:

“Obama’s IRS in Washington, D.C., by directing the political targeting by the agency against the tea party and other groups, may have compelled employees to violate their own contractual agreement. In part this is ironic, but it also perhaps explains why some Cincinnati employees had such strong misgivings about the targeting, as revealed recently in sworn testimony.

“This testimony and the agreement are a testament to the scrupulous standards that the American people expect from public employees, particularly from those enforcing the taxing power. Never again should such abuses be allowed to occur, and we urge more employees to come forward to ensure those who are directly responsible for the targeting are held to account.

“Moreover, since officials in the Obama Administration knew about the targeting long before it became public, a special counsel must be appointed to ensure that those who violated the public trust by engaging in political targeting are brought to justice.”

Attachments:

2009 National Treasury Employees Union contract agreement at http://www.nteu92.org/NA2.pdf

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Testimony: IRS D.C. office, not Cincinnati, ordered tea party targeting

Special Counsel must be appointed by Attorney General Eric Holder

June 3, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement in response to new testimony by IRS employees stating “Washington, D.C., wanted some cases” on the tea party and calling the two “rogue” agents explanation “impossible… the chance of two agents being rogue and doing things like that could never happen” and affirmed that the purpose of the targeting was to go after conservative groups:

“The original story given to the American people that the IRS scandal originated with two ‘rogue’ employees in Cincinnati is unraveling rapidly. Now that testimony from IRS employees has revealed that it was the Washington, D.C., and not the Cincinnati office that requested tea party applications be flagged, it is becoming increasingly clear that a special counsel must be appointed by Attorney General Eric Holder to the bottom of this of this gross misconduct.

“This is an extraordinary case of political viewpoint discrimination by the agency. To assure the American people that politics will not interfere with the outcome of the investigation, an independent, special prosecutor is required.”

Attachments:

“IRS rules required D.C. office, not Cincinnati, to deal with special cases,” By Robert Romano, May 30, 2013 at http://netrightdaily.com/2013/05/irs-rules-required-d-c-office-not-cincinnati-to-deal-with-special-cases/

“IRS rules already clear on 501(c)(4) political activity,” By Robert Romano, May 17, 2013 at http://netrightdaily.com/2013/05/irs-rules-already-clear-on-501c4-political-activity/

Criteria for Attorney General appointing a special counsel at http://law.justia.com/cfr/title28/28-2.0.4.5.1.html

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Brewer holds up religious freedom bill until Medicaid expansion is adopted

May 30, 2013, Fairfax, VA—Americans for Limited Government President Nathan Mehrens today issued the following statement condemning Arizona Governor Jan Brewer for vetoing legislation protecting religious freedoms in lieu of the Arizona House voting to expand Medicaid under the new health care law:

“Governor Brewer’s complicity in implementing Obamacare will not be forgotten. She is holding back legislation that passed overwhelmingly protecting religious freedoms to get her way on expanding Medicaid. To hold First Amendment rights hostage unless Obamacare is implemented is a betrayal to Arizonans who have consistently voted against politicians that support the health care law going into effect. Religious liberty is not a bargaining chip; it is the very foundation of the First Amendment.

Medicaid expansion in Arizona will cost taxpayers across the country $2.1 billion through 2019 and add more than 100,000 to government health care rolls. Brewer joins other Republican governors in Ohio, Florida, New Jersey, Virginia, and Michigan who have similarly opened the door to implementing Obamacare.

“If Republicans offer these types of ‘alternatives’ to voters — where both parties favor expanding government dependency — why should their base support them? Sadly, the Arizona Senate has failed in its duties to stop Obamacare, leaving it up to the Arizona House not to give in to this blackmail.”

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

IRS rules already clear on 501(c)(4) political activity

May 17, 2013, Fairfax, VA—In testimony before the House Ways and Means Committee, outgoing Internal Revenue Service (IRS) Commissioner Steven Miller suggested that the targeting of tea party and other groups was in part caused by Congress’ failure to provide “clear rules” on what constitutes political activity.

“With respect to political activity, it would be a wonderful thing to get better rules,” Miller said, stating the rules needed to be “more clear.”

But those rules are already clear, Americans for Limited Government President Nathan Mehrens noted.

“IRS rules already stipulate that political activity is electioneering, that is, express advocacy for or against a candidate standing for public office and direct contributions to candidates or candidate committees. And it is already clear based on IRS rules that 501(c)(4) organizations are allowed to engage in a limited amount of political activity provided it does not constitute a majority of its activity, plus an unlimited amount of lobbying and issues advocacy, that is, advocacy in favor or against legislation or regulations or court rulings, provided that it furthers its tax-exempt function,” Mehrens stated.

“Miller may not agree with those rules, but to suggest they are not clear is incorrect,” Mehrens explained.

Miller explained the targeting: “What happened here was someone saw some tea party cases come through. They were acknowledging that they were going to be engaged in politics. This was the timeframe in 2010 when Citizens United was out. There was a lot of discussion in the system about the use of [501](c)(4)s.”

Except, Citizens United clarified that organizations are allowed to engage in politics, Mehrens explained. “If anything, Citizens United made things more clear, not less. The Supreme Court simplified the rules and stated that organizations have a First Amendment right to engage in political activity, period.”

Miller continued in his testimony, explaining the process for centralizing these cases: “People in Cincinnati decided let’s start grouping these cases, let’s centralize these cases.” This meant quarantining the applications and sending them to Exempt Organizations (EO) Technical, based in Washington, D.C. for special scrutiny.

“The way they centralized it, troublesome. The concept of centralization, not,” Miller said, suggesting that targeting political activity of groups was permissible. Elsewhere in testimony, he agreed that the agency was targeting political activity: “the litmus test if anything was political activity.”

Mehrens blasted the practice, “The IRS processes thousands of tax-exempt applications a year that engage in issues advocacy, lobbying, and yes, political activity without any hassle or special scrutiny. They are allowed by law to engage in these activities. Yet, these tea party cases were selected for special scrutiny. This created inconsistency in the processing of applications, when the revenue procedures state that centralization is supposed to establish uniformity. Liberal groups doing the same thing as tea party groups were not centralized.”

But, even if liberal groups had been targeted too would not have helped, Mehrens added, “Targeting organizations for special scrutiny on the belief that they might exercise their First Amendment protected rights to engage in political activity in is an egregious violation of the freedom of speech. If it had been done consistently for groups of all stripes would not have made it better.”

Miller suggested the practice was “not illegal,” but Mehrens said, “Of course it was illegal. These actions violated the First Amendment to the Constitution which is the ‘supreme Law of the Land’.”

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Obama fails to nominate IG watchdogs

May 15, 2013, Fairfax, VA—Americans for Limited Government Vice President for Public Policy and Communications Rick Manning today issued the following statement blasting the White House for failing to nominate individuals to serve as six inspectors general for the Departments of Defense, Labor, State, Homeland Security, and Interior, and the U.S. Agency for International Development (AID):

“As today’s Treasury inspector general report on the IRS shows, having a Senate-confirmed inspector general is of critical importance to holding any administration accountable for malfeasance. Yet, the Obama Administration has chosen not to fill six critical positions that could protect the interests of the public against IRS-like intrusions.

“The only reason the IRS admitted targeting conservative groups with improper and intrusive scrutiny after 3 years is because they knew the inspector general report was due to be released. If not for the IG, this targeting would likely continue and be expanded without fear of exposure. Yet, Obama, who claims to run the most transparent administration in history, has deliberately shunned the responsibility of appointing these government watchdogs.”

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Holder should appoint independent, special counsel on IRS scandal

May 14, 2013, Fairfax, VA—Attorney General Eric Holder says the Department of Justice has launched a criminal probe into whether tea party and other groups were improperly targeted by the Internal Revenue Service (IRS).

Americans for Limited Government President Nathan Mehrens earlier today in a letter urged Senate leaders to demand Holder appoint a special counsel to investigate the matter, noting that Senate Finance Committee Chairman Max Baucus in Sept. 2010 had called for the IRS to investigate 501(c) non-profit political organizations.

“Just as the Senate majority cannot be trusted to investigate its own complicity in this affair, neither can the Obama Administration,” Mehrens wrote.

“The only role the scandal-plagued Justice Department should play in investigating the IRS abuse case is by Attorney General Holder appointing a special counsel to ensure that politics do not obscure the facts, and that investigators can follow those facts wherever they may lead,” ALG vice president of public policy and communications Rick Manning stated.

Under current law, only the Attorney General can appoint a special counsel.

Attachments:

“Senate Democrats ordered IRS in 2010 to investigate 501(c) groups, letter shows,” Americans for Limited Government, May 14, 2013 at http://getliberty.org/senate-democrats-ordered-irs-in-2010-to-investigate-501c-groups-letter-shows/

Americans for Limited Government letter to Sen. Majority Leader Harry Reid and Sen. Minority Leader Mitch McConnell, May 14, 2013 at http://getliberty.org/wp-content/uploads/2013/05/IRSScandalLetter-5-14-13.pdf

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###

Senate Democrats ordered IRS in 2010 to investigate 501(c) groups, letter shows

ALG calls for special counsel to be appointed to prosecute case

May 14, 2013, Fairfax, VA—Senate Finance Committee Chairman Max Baucus (D-MT) in a 2010 letter requested that then-Internal Revenue Service (IRS) Commissioner Douglas Shulman deeply investigate 501(c) non-profit political organizations.

The letter called on Shulman to “survey major 501(c)(4), (c)(5) and (c)(6) organizations involved in political campaign activity to examine whether they are operated for the organization’s intended tax exempt purpose and to ensure that political campaign activity is not the organization’s primary activity” and to “to determine whether they are acting as conduits for major donors advancing their own private interests regarding legislation or political campaigns, or are providing major donors with excess benefits.”

In his own letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, Americans for Limited Government President Nathan Mehrens noted, “Considering the invasive questions the IRS was asking the targeted organizations, it appears that Sen. Baucus got exactly what he asked for, which was a witch-hunt.”

Baucus’ letter also instructed Shulman that “Possible violation of tax laws should be identified as you conduct this study. Please report back to the Finance Committee as soon as possible with your findings and recommended actions regarding this matter.”

Baucus specifically referenced a Sept. 16, 2010 Time article, “The New GOP Money Stampede” reporting that “Democrats fear [what] could be a $300 million Republican spending blitz this year.” The story detailed allegations that local tea party groups were actually “shadow Republican groups formed by longtime party officials.” The article referenced the tea party, but also American Crossroads, American Action Network, and the U.S. Chamber of Commerce as forming a wider campaign front for the 2010 Republican election campaign effort, financed “in the form of secret undisclosed contributions.”

Baucus also referenced “a group transforming itself into a non-profit under 501(c)(4) of the tax code,” ensuring, as the Time article put it, that the group would “not have to publicly disclose any information about its donors.” That “group” Baucus referenced was actually Crossroads GPS.

“The Time article Baucus so prominently referenced was all about the financing of Republican election efforts and right of center political and advocacy organizations,” Mehrens noted in his letter, adding, “It did not scrutinize any left-wing groups. Nor did Baucus include in his letter to Shulman any footnotes to articles that detailed Democrat campaign activities or left of center groups. The implicit task was to investigate the political right from start to finish. And that’s exactly what the IRS did.”

Yesterday, Baucus issued a statement suggesting “Targeting groups based on their political views is not only inappropriate but it is intolerable, promising a “full investigation into this matter by the Senate Finance Committee.”

But that is not possible, Mehrens said, considering Baucus’ letter to Shulman. “Senate Democrats were complicit in the IRS scandal targeting the tea party and other groups, per Baucus’ explicit letter to Shulman. The Senate majority must therefore recuse itself from any ensuing investigation in order to ensure that the public’s trust in the inquiry’s findings is not tainted.”

The only good option, Mehrens wrote, was for Senate leaders to call on Attorney General Eric Holder to appoint a special counsel to prosecute the case. “Just as the Senate majority cannot be trusted to investigate its own complicity in this affair, neither can the Obama Administration.”

He concluded, “These targeted attacks by the IRS were not about restoring ‘transparency’ to our political process, they were a part of a brazen partisan assault using the instrumentalities of the state to harass political opponents and stifle dissent to achieve a partisan end. It is beyond Nixonian in its flagrant disregard for the rule of law. Only a special counsel can get to the bottom of this.”

Mehrens joined others, including the Republican Governors Association, who today also demanded a special prosecutor be appointed.

Attachments:

Americans for Limited Government letter to Sen. Majority Leader Harry Reid and Sen. Minority Leader Mitch McConnell, May 14, 2013 at http://getliberty.org/wp-content/uploads/2013/05/IRSScandalLetter-5-14-13.pdf

Letter from Sen. Max Baucus to then-IRS Commissioner Douglas Shulman, Sept. 28, 2010 at http://www.politico.com/static/PPM176_100929_irs.html

“The New GOP Money Stampede,” by Michael Crowley, Time Magazine, Sept. 16, 2010 at http://www.time.com/time/printout/0,8816,2019611,00.html

Interview Availability: Please contact Americans for Limited Government at (703) 383-0880 ext. 103 or at media@algnews.org to arrange an interview with ALG experts including ALG President Nathan Mehrens.

###