Domestic Taxes

The Congressional Budget Office (CBO) noted Wednesday that a carbon tax could generate “significant” revenues for the United States and avert “catastrophic” effects of climate change.

CBO said in a new report that there are many uncertainties about how to design and implement a carbon tax, but waiting too long to curb greenhouse gas emissions would have clear results.

“[D]elays would increase the expected damage from climate change by increasing the risk of very costly, potentially even catastrophic, outcomes. … In general, the risk of costly damage is higher as the extent of warming increases and as the pace of warming picks up; thus, failing to limit emissions soon increases that risk,” the report said.

The new head of the Internal Revenue Service told agency employees Wednesday that he would do everything in his power to restore its reputation with the public.

In an agency-wide memo sent to staff on his first day on the job, acting IRS Commissioner Danny Werfel acknowledged the turmoil that has enveloped the agency, while insisting the tax administrators play an "indispensable role" for the nation.

"It has obviously been a difficult last few days for all of you," he wrote. "There is rightly concern among the public about the trust that they place in the IRS to administer the tax code fairly and help America's taxpayers understand and meet their tax responsibilities. Working together, it is up to us to restore that trust and ensure that the IRS remains the exceptional, indispensable organization it has always been."

The House Ways and Means Committee is inviting the public to weigh in with tales of Internal Revenue Service (IRS) woes.

The tax-writing panel launched a portal on its website Tuesday that invites the public to describe any interactions they have had with the IRS, calling the input "critical" to continuing the probe into the agency's improper targeting of Tea Party groups.

"Many more questions remain, including how individuals and organizations were affected by the actions of the IRS. As the committee continues to pursue this investigation, this website allows those affected by the IRS scandal to share their story," the committee stated on the submission page. "Your story is critical to moving the investigation forward. Taking a few minutes to fill out the form below and share your story will allow the Committee to identify key facts and take action to deal with the failures of the IRS."

"You don't want to lie before Congress!" Rep. Sean Duffy (R-Wis.) told Treasury Secretary Jack Lew in a House hearing. 

Shulman defended his hands-off approach to dealing with tax-exempt applications as members of both parties criticized him.

Rep. John Mica (R-Fla.) pressed Doug Shulman on his personal political affiliations and contributions in a contentious exchange. 

"I know that some people will assume that I have done something wrong," she said. "I have not."

A committee spokesman said Chairman Darrell Issa (R-Calif.) had already subpoenaed Lois Lerner to ensure her appearance before the panel.

An internal IRS investigation found that the agency was improperly scrutinizing conservative groups a full year before a Treasury audit made similar findings, a House Oversight aide said Tuesday.

The aide said that Steven Miller, the acting IRS commissioner ousted by President Obama last week, sent other agency officials to the Cincinnati office at the center of the IRS uproar.

Those officials reported back to Miller, then deputy commissioner for services and enforcement, on May 3, 2012, that there were “significant problems in the review process and a substantial bias against conservative groups—conclusions virtually identical to those reached by the IG a year later.”

Doug Shulman told the Senate Finance panel he only learned of the IRS targeting after he left in November 2012.