Tag: ProPublica

Billionaire Ken Griffin Sues IRS Over Leak Exposing Taxes Paid By 25 Richest Americans

Mary Pat Campbell

Link: https://www.thewealthadvisor.com/article/billionaire-ken-griffin-sues-irs-over-leak-exposing-taxes-paid-25-richest-americans

Excerpt:

Hedge fund billionaire Ken Griffin, who founded and helms trading powerhouse Citadel, has sued the Internal Revenue Service and Treasury Department for alleged negligence in maintaining safeguards for confidential tax returns after a bombshell report last year cited a trove of IRS data in a series of articles detailing the incomes and taxes paid by some of the world’s richest people.

KEY FACTS

In a federal suit filed with the Southern District of Florida, Griffin alleged the IRS has “willfully and intentionally” failed to establish adequate safeguards to protect confidential tax return information after nonprofit news outlet ProPublica published an article citing the data in June 2021 and then followed up with several pieces, including some targeting Griffin’s political lobbying.

The suit, first reported by Wall Street Journal, claims the disclosure of Griffin’s tax return information to ProPublica was not “requested by the taxpayer,” and as a result entitles the billionaire to punitive damages totaling at least $1,000 per unlawful disclosure and attorneys’ fees, according to a section of the tax code.

It is a felony for a federal employee to leak a tax return or information about a tax return, but the source of the data remains unknown despite some lawmakers claiming there “is little doubt” the confidential information “came from inside the IRS;” the IRS and Justice Department have stated they are investigating the leak, but no formal charges have been filed.

Author(s): Jonathan Ponciano

Publication Date: 13 Dec 2022

Publication Site: The Wealth Advisor, Forbes

The Most Detailed Map of Cancer-Causing Industrial Air Pollution in the U.S.

Mary Pat Campbell

Link: https://projects.propublica.org/toxmap/?utm_source=sailthru&utm_medium=email&utm_campaign=datastore&utm_content=river

Graphic:

Excerpt:

ProPublica’s analysis of five years of modeled EPA data identified more than 1,000 toxic hot spots across the country and found that an estimated 250,000 people living in them may be exposed to levels of excess cancer risk that the EPA deems unacceptable.

The agency has long collected the information on which our analysis is based. Thousands of facilities nationwide that are considered large sources of toxic air pollution submit a report to the government each year on their chemical emissions.

But the agency has never released this data in a way that allows the public to understand the risks of breathing the air where they live. Using the reports submitted between 2014 and 2018, we calculated the estimated excess cancer risk from industrial sources across the entire country and mapped it all.

The EPA’s threshold for an acceptable level of cancer risk is 1 in 10,000, meaning that of 10,000 people living in an area, there would likely be one additional case of cancer over a lifetime of exposure. But the agency has also said that ideally, Americans’ added level of cancer risk from air pollution should be far lower, 1 in a million. Our map highlights areas where the additional cancer risk is greater than 1 in 100,000 — 10 times lower than the EPA’s threshold, but still high enough to be of concern, experts say.

Author(s): Al Shaw and Lylla Younes, Additional reporting by Ava Kofman

Publication Date: last updated 15 Mar 2022, accessed 16 Mar 2022

Publication Site: ProPublica

ProPublica’s Plan for a Poorer America

Mary Pat Campbell

Link: https://www.wsj.com/articles/propublicas-plan-for-a-poorer-america-11623881781?st=0g4wamiq5m5ces3&reflink=desktopwebshare_twitter

Excerpt:

ProPublica substitutes a magazine’s estimate of wealth appreciation, which never appears on the stolen tax returns, to falsify income. Using this deception the site calculates its “true tax rate.” ProPublica laments that taxpayers are acting “perfectly legally” in not paying a federal wealth tax, which doesn’t exist.

That wealth is taxed only when converted into income or on death may be an outrage to those in government who want to spend that wealth, but it is a purposeful, enlightened policy that lets wealth work as the nation’s seed corn, making America the richest nation in the history of the world. That wealth in turn makes it possible for the government today to provide $45,000 a year in transfer payments to the average household in the bottom 20% of American earners.

….

Taxing wealth accumulation will mean less wealth accumulation, lower productivity growth, lower wages and a less prosperous America. If you had to pay a federal property tax on the appreciation of your home and the growth in the value of your retirement assets, farm and business every year, how could you or America ever get ahead? Private investment has created $32 trillion of equity wealth in America. “Public investment” has created $21 trillion of public debt.

Author(s): Phil Gramm, Mike Solon

Publication Date: 16 June 2021

Publication Site: Wall Street Journal

Return of the IRS Scandal

Mary Pat Campbell

Link: https://www.wsj.com/amp/articles/return-of-the-irs-scandal-11623191964

Excerpt:

 Less than half a year into the Biden Presidency, the Internal Revenue Service is already at the center of an abuse-of-power scandal. That news broke Tuesday when ProPublica, a website whose journalism promotes progressive causes, published information from what it said are 15 years of the tax returns of Jeff Bezos, Warren Buffett and other rich Americans.

Leaking such information is a crime, since under federal law tax returns are confidential. ProPublica says it received the files from “an anonymous source” and doesn’t know who provided them, how they were obtained, or what the source’s motives are.

Allow us to fill in that last blank. The story arrives amid the Biden Administration’s effort to pass the largest tax increase as a share of the economy since 1968. The main Democratic argument for a tax hike is that the rich should pay their “fair share.” The ProPublica story is a long argument that somehow the rich don’t pay enough. The timing here is no coincidence, comrade.

….

This still leaves the real scandal, which is that someone leaked confidential IRS information about individuals to serve a political agenda. This is the same tax agency that pursued a vendetta against conservative nonprofit groups during the Obama Administration. Remember Lois Lerner?

This is also the same IRS that Democrats now want to infuse with $80 billion more to chase a fanciful amount of uncollected taxes. As part of this effort, Mr. Biden wants the IRS to collect “gross inflows and outflows on all business and personal accounts from financial institutions.” Why? So the information can be leaked to ProPublica?

Author(s): Editorial board of WSJ

Publication Date: 8 June 2021

Publication Site: Wall Street Journal

The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

Mary Pat Campbell

Link: https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax

Methodology: https://www.propublica.org/article/how-we-calculated-the-true-tax-rates-of-the-wealthiest

On legality etc: https://www.propublica.org/article/why-we-are-publishing-the-tax-secrets-of-the-001

Graphic:

Excerpt:

ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing.

….

In 2011, a year in which his wealth held roughly steady at $18 billion, Bezos filed a tax return reporting he lost money — his income that year was more than offset by investment losses. What’s more, because, according to the tax law, he made so little, he even claimed and received a $4,000 tax credit for his children.

His tax avoidance is even more striking if you examine 2006 to 2018, a period for which ProPublica has complete data. Bezos’ wealth increased by $127 billion, according to Forbes, but he reported a total of $6.5 billion in income. The $1.4 billion he paid in personal federal taxes is a massive number — yet it amounts to a 1.1% true tax rate on the rise in his fortune.

Author(s): Jesse Eisinger, Jeff Ernsthausen, Paul Kiel

Publication Date: 8 June 2021

Publication Site: ProPublica

The Lost Year: What the Pandemic Cost Teenagers

Mary Pat Campbell

Link: https://www.propublica.org/article/the-lost-year-what-the-pandemic-cost-teenagers

Excerpt:

As many of these experts have noted, the cost of restrictions on youth has gone beyond academics. The CDC found that the proportion of visits to the emergency room by adolescents between ages 12 and 17 that were mental-health-related increased 31% during the span of March to October 2020, compared with the same months in 2019.A study in the March 2021 issue of Pediatrics, the journal of the American Academy of Pediatrics, of people aged 11 to 21 visiting emergency rooms found “significantly higher” rates of “suicidal ideation” during the first half of 2020 (compared to 2019), as well as higher rates of suicide attempts, though the actual number of suicides remained flat.

….

Even with fall sports canceled, the Hobbs school district, with almost 10,000 students, was still hoping to open the new school year for as much in-person instruction as possible. More than just scholastic considerations were driving this. In late April, six weeks into the spring’s pandemic lockdowns, the community had been stunned by the suicide of an 11-year-old boy, Landon Fuller, an outgoing kid who loved going to school and had, his mother said, struggled with the initial lockdowns.

New Mexico has consistently had one of the highest youth suicide rates in the country — it’s roughly twice the national average — and preliminary state statistics would later show the 2020 rate as unchanged. Nationwide, deaths by suicide in the 10-to-24 age group increased by half between 2007 and 2018, a trend that has been linked to multiple factors, from the growing availability of guns to the spread of smartphones and social media. In New Mexico, mental health experts say, the factors also include high rates of depression on Native American reservations, and rural isolation in general.

Author(s): Alec MacGillis

Publication Date: 8 March 2021

Publication Site: ProPublica

How the Police Bank Millions Through Their Union Contracts

Mary Pat Campbell

Link: https://www.propublica.org/article/new-jersey-police-contracts

Graphic:

Excerpt:

Despite attempts to rein in police union contracts in New Jersey, costly provisions remain common, an unprecedented analysis by the Asbury Park Press and ProPublica found. The news outlets identified contract clauses throughout the state that protect officer payouts that cost the public hundreds of millions of dollars.

In 2010, state lawmakers passed a law to stop huge retirement payouts for unused sick days, but taxpayers are still funding the largesse. North Bergen approved generous payments to four retiring officers in 2019, including a sergeant who got $75,330.32 for unused sick time. Some retirement payouts can be even higher. In 2017, a chief in Jersey City collected more than half a million dollars.

The debt for unused sick time and vacation time, which is largely dictated by the contracts, totaled at least $492.9 million for municipal police alone in 2019, according to a review of town budget records. The liability is primarily due to officers who were hired before the 2010 law passed.

Author(s): Andrew Ford, Asbury Park Press, and Agnes Chang, Jeff Kao and Agnel Philip

Publication Date: 8 February 2021

Publication Site: ProPublica