Tag Archives: irs

IRS Spends Nearly $100 Million on Office Furniture

Just remember, you don’t pay enough in taxes, you are greedy to want to keep your own earnings, and you can’t deduct legitimate home office use without getting audited… But if you are the government, you can buy chairs for $1,209 each, then go to Congress and tell them you don’t have any money to “support the taxpayer needs.”  Big government is the problem, not political parties.

Obama’s IRS Spends Nearly $100 Million on Office Furniture

Spending on furniture outnumbers Bush administration

Treasury Secretary Jacob Lew / AP

BY:
May 12, 2014 9:59 am

The IRS has spent $96.5 million on office furniture under the Obama administration and is now claiming it has insufficient funding to adequately serve taxpayers.

Treasury Secretary Jack Lew testified before the House two weeks ago about the IRS’ need for additional funding for the upcoming fiscal year. The IRS is currently seeking an increase of $1.2 billion—a 7 percent raise over its FY 2014 $11.29 billion budget. It would bring the agency’s FY 2015 budget to $12.48 billion.

A review of contracts by the Washington Free Beacon shows the IRS in the past five fiscal years has spent $96.5 million refurbishing IRS offices across the country. Those contracts include fiscal years 2010 through 2014.

That amount already exceeds what the agency spent during the entire eight years under President George W. Bush, fiscal years 2002 through 2009.

The purchases during the current administration show contracts are for various amounts. They range from several millions to hundreds of thousands of dollars for each agency office.

The first fiscal year budget for which President Obama was responsible was FY 2010 and it was a banner year—when the agency spent the most on new furniture. Records show $44.4 million was spent that year.

The Free Beacon found in a total of 3,777 contracts he IRS has purchased various types of furniture. The contracts include new chairs, showcases, partitions and shelving, and wood furniture.

A sampling from the volume of contracts includes the agency’s Lowell, Mass., office, which spent $5.04 million on showcases, partitions and shelving. The contract was signed in 2012 was completed on April 30, 2013.

The Philadelphia IRS office spent $2.8 million for “furniture systems.”  That contract was signed in 2011 and the work was completed in 2012.

Other IRS offices also had multi-million dollar makeovers.  A contract in 2011 shows the “purchase of systems furniture” in the amount of $2.67 million for the Colorado office. The Washington, D.C., office received $2.6 million in “new system furniture/service” and the work was completed in 2012.

Still another contract shows the Iowa office had a $1.08 million makeover. The contract did not detail the type of furniture purchased.

Michigan, which has six IRS offices, has spent the most on furniture of all the states during this time frame.  Its contracts include $1.57 million in taxpayer funds spent for its Leeward office, and another $1.36 million on its Zeeland office.

While it is unclear what type of furniture was purchased for the IRS office in Jasper, Ind., records show two large purchases were completed just four months apart. One contract for $689,719 was completed in November 2010.  Another contract for $805,515 was completed in March 2011.

Contracts also revealed that hundreds of thousands of dollars were spent solely on chairs for the IRS’ office in Haverhill, Mass. The contract shows $618,881 was spent on “Task Chairs Phase II.” That work was completed on Dec. 31, 2012. Due to the volume of contracts, the Free Beacon could not find the amount spent for Phase I of the task chairs project or if there were any additional phases after this second one.

Another contract shows the agency’s offices in Seattle and Austin received over $1.1 million in new furniture. One contract for $810,200 and another for $327,908 were both completed in February 2013.

The top three prime award contractors were Knoll, Herman Miller, and Haworth International. While some records did not give detailed information on the types of furniture purchased, the high-end retailers’ websites do give taxpayers a sampling of their products and costs.

Herman Miller has chairs that cost $1,209, and storage units that cost $1,749. Knoll’s chairs retail for $659. Another company awarded several contracts claims on its website it partners with “best interior products manufacturers” in the industry.

In his testimony, Lew said, “The IRS continues its commitment to carrying out its responsibilities, providing quality service to taxpayers and preserving the public’s faith in our tax system, but the lack of sufficient funding in recent years has made it difficult to provide the kind of services American taxpayers deserve.”

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For College Students – Welcome to Cynicism 101

I know a lot of you young college students were all excited when President Obama was elected and re-elected on a message of hope and change.  I also know many of you were excited about “free health care coverage for all Americans” after all we live in such a rich country, why not?  You were probably also excited when President Obama decided to take over student loans and not allow banks to rip you off any more on the rate increases.

[I plan to post a few cynicism lessons from time to time and promise to skewer all political parties, etc.  I am not an anarchist but I believe in personal freedom and a small government.  Unfortunately, those concepts are under attack by all parties.]

Cynicism is an attitude or state of mind characterized by a general distrust of others’ apparent motives believing that they are selfish in nature and/or displaying that themselves.

I am sorry to start your long descent into the never ending layers of cynicism, but here is what really happened:

1)  Banks were making about $57 Billion per year off student loan interest.

2)  Student loans were federalized (taken away from private banks) as a clause in the Affordable Healthcare Act (AHA), not to help you, but to get that $57 Billion to help pay for “free health care” coverage.

3)  The Obama Administration put in automatic escalator calculations in your student loan rates that would have raised them to 7.5% from their former 1-2% range, raising the federal income off student loans from $57 Billion per year to about $350 Billion.

4) When students became outraged, Congress cut this percentage to 3.86 to 6.41% depending on the category of loan, basically still tripling the private bank rate, but telling you they ‘saved you money’ by a temporary one year cap.  (http://studentaid.ed.gov/types/loans/interest-rates)

5)  The evil banks meanwhile get loaned money from the federal reserve at the fed funds rate of 8/100 ths of a percent.  That’s right.  You pay at least 3.86% to get your education, while the evil banks get money from the Obama administration at 0.08%. (http://www.federalreserve.gov/releases/h15/current/)

6)  The evil banks were bailed out and posted record profits this year.

7)  Your current $54 per semester policies to cover your health while you go to college are now illegal under ACA.  Your new plans will cost you $1,800 per year, a 1500% increase, even though you are not going to be sicker than you were before.  This is so you can pay for the healthcare of older people through your premium, along with your higher cost student loans. (http://www.foxnews.com/politics/2013/11/18/students-suffer-sticker-shock-from-obamacare/)

8)  So you are going to tell them to take a hike?  Sorry, the IRS will cut off your student loans, bill you a fine and withhold your refunds if you do not participate.

9)  So far, less than 200,000 people have made it into AHA while over 15 million have had policies canceled.  Some estimates show up to 100 million policy cancellations this year, due to regulations put in place by Secretary Sebelius under AHA.

10) Evil insurance companies no longer have to take risk, sell you plans, or price things individually.  They just put three offerings on the exchanges and let the enrollees and profits roll in.

11)  The Obama Administration spent over $600 million on Healthcare.gov and it still does not function.

12)  The Obama Administration spent $4.4 Billion giving money to states for exchanges that do not work either.

Welcome to government run programs.  This is how bad and costly it is just to get started.  Just wait until they run short of money for the actual treatment of patients and see what happens then with waiting times and restriction of access to care and drugs.

cynicism2

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