Heavier Punishment for Bank Account Reporting Miscue than for Child Porn

Daniel J. Mitchell
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Posted: Aug 30, 2012 12:01 AM

If you can read the following and not get upset, you are not a good person. Please move to France (where higher taxes are “patriotic”) and don’t come back.

I’m engaging in a bit of hyperbole, but you’ll hopefully understand after reading this excerpt from a very disturbing report posted on Zero Hedge.

Jacques Wajsfelner of Weston, Massachusetts is a criminal mastermind. Big time. Like Lex Luthor. But rest easy, ladies and gentlemen, for this nefarious villain is about to face some serious jail time thanks to the courageous work of US government agents. You see, Mr. Wajsfelner was finally caught and convicted of a most heinous crime: failing to disclose his foreign bank account to the US government. Note– he was not convicted of tax evasion. He was not convicted of failing to file or pay taxes. His crime was not filing the annual Report of Foreign Bank and Financial Accounts (FBAR). Because of his failure to disclose his foreign bank account, Wajsfelner is now looking at FIVE YEARS behind bars in a Day-Glo orange jumpsuit. Oh, one more thing– Wajsfelner is 83 years old. He was born in Germany during the global depression and rise of Adolf Hitler. The Wajsfelner family soon fled the Nazi regime and made its way to the United States.

Please note that Mr. Wajsfelner didn’t get convicted of not paying tax. He got convicted for the utterly trivial and victimless “crime” of not reporting a foreign bank account.

So the government is sending a completely harmless old man to jail for something that shouldn’t be illegal (and if we had a flat tax, there would be no double taxation of saving and investment, so it wouldn’t matter for tax purposes if your bank account was in Georgetown, Kentucky, or Georgetown, Cayman Islands).

Now let’s compare the treatment of Mr. Wajsfelner with the way some real criminals are treated.

Then there’s Eric Higgins of Port Huron, Michigan, who was recently busted for major possession of child pornography and engaging in sexually explicit conversations with juveniles online. He was given 20 months. Oh… and Mr. Higgins was a US Customs & Border Patrol agent. …Or Ricardo Cordero, another US Customs & Border Patrol officer who was given 27-months for personally smuggling 30 Mexican nationals into the United States, and assisting another smuggler to bring 15 Mexican nationals across the border. This genius even had the smuggler testify as a character witness at his divorce proceeding! Or Jon Corzine, former CEO of Goldman Sachs and member of the political elite, who presided over one of the largest plunders in the financial system ever seen during the recent MF Global collapse. He walks the streets freely to this day.

The article closes with a very accurate – but understated – assessment of the federal government.

It seems pretty clear where the US government stands: the victimless crime of failing to report a foreign bank account is far more egregious than, say, possession of child pornography, engaging with minors in online sex chat, bribery, extortion, fraud, and abuse of official power.

This horrifying example of government abuse is a good example of why I’m a libertarian. Yes, I get upset about bloated and counterproductive government spending. And I also get irked by our punitive and destructive class-warfare tax system.

But what gets me most upset is unfair tyranny against powerless people. If your stomach can stand it, here are some more examples.

Every one of the government officials involved in these episodes should be fired. And they should consider themselves lucky that tar and feathers are no longer a method of dealing with despicable bureaucrats.

P.S. The Zero Hedge website is also the source of the extremely funny and clever ethnic analysis of Europe.

P.P.S. While I utterly despise bureaucrats who engage in thuggish behavior, I’m not a big fan of bureaucrats in general.

P.P.P.S. The government’s grotesque treatment of Mr. Wajsfelner is part of the overall attack on tax competition. Heaven forbid people have the freedom to benefit from better tax policy in other jurisdictions!