Obama Administration Use of Foe's Tax Records Reviewed -- Koch Industries

First thing that you think of when reading this article is 'Chicago Style politics' at work. In typical Chicago fashion, someone wants to get an opponent out of the way or neutralize them, then release negative information from sealed or non-public records to the media. In this case the Obama Administration was using Koch Industries from Iowa as their "mean, evil business who doesn't pay taxes" which turns out is not true. Why would let facts stand in their way of good propaganda?

When Obama officials were caught, they started the spin that they didn't get their information from IRS but on the Koch website or from a briefing. That didn't work because the Koch Industries tax status is not on their website. In fact, it is only available from the IRS as Koch Industries has never made their tax status public. With misleading statements by the Obama people, Senator Grassley (R-IA) is asking for a federal investigation into where the information came from that was used by the Obama Administration.

Over the years Obama has had a habit of getting his opponents out of the way by using leaked documents. Is this another one of those cases? An example was in IL when he was running for US Senator, his people were able to get divorce records unsealed for his opponent. It would be a piece of cake to obtain IRS records by the Obama Administration.

A White House official said Tuesday that the administration will not use the Koch example in the future, but that the comment was "not based on any review of tax filings." Other White House officials have told reporters that the information was publicly available, including in testimony to the President's Economic Recovery Advisory Board and on Koch's website.

But an attorney for Koch said in a statement last month that the company does pay corporate income taxes and that information about its structure and tax liability are not publicly available.
Mr. Grassley and his fellow Republicans pointed to that statement in their request for an investigation.

"The statement that Koch is a [nontaxable] pass-through entity implies direct knowledge of Koch's legal and tax status, which would appear to be a violation of Section 6103" of the Internal Revenue Code, the senators wrote. "Alternatively, if the statement was based on speculation, it raises the question of whether the administration speculating about any specific taxpayer's liability is appropriate."

Even when caught in a lie, the Obama Administration continues with the spin in typical Chicago fashion. How is the White House ability to spin going to be affected by Rahm Emmanuel and David Axelrod leaving the White House? We think a lot a lot because those two were 'masters of spin.'

Obama use of foe's tax records reviewed
Speeches assailed Koch Industries

By Stephen Dinan
The Washington Times
8:26 p.m., Tuesday, October 5, 2010

A federal inspector general is looking into whether the Obama administration used confidential taxpayer information in an effort to attack a political opponent, Koch Industries.

The review was revealed Tuesday by Sen. Charles E. Grassley of Iowa, two weeks after he and a handful of other top Senate Republicans called for the Treasury Department's inspector general for tax issues to look into the matter, saying either administration officials had illegal access to taxpayer information or were inappropriately speculating in public about the company's tax status.

Charles and David Koch, brothers who control the Kansas-based company, are libertarians who have used some of their wealth to fund conservative groups and causes that oppose much of President Obama's agenda. Mr. Obama has singled out the company for criticism in speeches.

In an Aug. 27 briefing with some reporters on calls to restructure the corporate tax code, an unidentified administration official cited Koch Industries, a major privately held energy company, by name, and then seemed to indicate that the company didn't pay any corporate income tax, according to the Wall Street Journal.

"In this country, we have partnerships, we have [S corporations], we have [limited-liability companies], we have a series of entities that do not pay corporate income tax," said the senior administration official, according to press reports. "Some of which are really giant firms - you know, Koch Industries is a multibillion-dollar business."

The Weekly Standard, which first questioned whether the comments crossed a legal line, has reported that the unidentified administration official "appears to have been" Austan Goolsbee, named last month as chairman of the White House Council of Economic Advisers.

Excerpt: Read More at Washington Times