Daniel J. Mitchell

The IRS is worthy of scorn. It is a bloated bureaucracy that routinely violates the rights of taxpayers.

But even I didn’t think it was possible for a collection of bureaucrats to display the blithering incompetence necessary to send $46 million of handouts to nearly 24,000 fake returns filed from a single address.

Yes, a single address. I’m not joking. Read these details from MSN…but only if you don’t have high blood pressure.

If you make an oversight while paying your taxes to the IRS, you better believe you’ll be audited, harshly fined, and held completely accountable. Meanwhile, in 2011, the IRS accidentally sent more than $46 million in refunds to 23,994 “unauthorized” alien workers. And they sent it all to one Atlanta address. This is coming to light thanks to the Treasury Inspector General for Tax Administration (TIGTA) audit report.

Even I’m amazed, and I have extremely low expectations.

Keep in mind, by the way, that the “refunds” mentioned in the story almost surely aren’t refunds. Instead, they’re “earned income credit” payments, which are a form of income redistribution laundered through the tax code.

I explained back in 2010 how this scam works, and it’s worth noting this is a huge problem – more than $10 billion of fraud each and every year.

The nitwits at the IRS even sends housing tax credit checks to prisoners!

And these are the geniuses in charge of enforcing Obamacare. Hey, what could possibly go wrong?

For Heaven’s sake, let’s rip up the entire tax system and replace it with a simple and fair flat tax.

Or, better yet, let’s shrink the federal government down to the size envisioned by the Founding Fathers. Then we wouldn’t need any broad-based tax.


Daniel J. Mitchell

Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy at the Cato Institute.
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