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August 27, 2012

IRS – Internal Retroactive Service

President Obama believes solar energy must play an important role in our “clean energy” future, ultimately helping to replace fossil and other non-renewable energy sources.  To further this end, his administration is taking the following steps:

  1. Make solar panels more expensive than they have to be.
  2. Hit small businesses that install solar panels with hundreds of thousands of dollars in retroactive taxes.

Apparently, the problem is that China’s unfairly government-subsidized bankrupt solar panel companies are driving America’s unfairly government-subsidized bankrupt solar panel companies out of business through lower prices.

This is simply an outrage that cannot be allowed to stand, unless we are willing to accept a future in which America is a distant #2 in wholly unviable business plans.

In order to address this inequity, the Obama administration is slapping tariffs of up to 250% on solar panels made in China, thereby making it much more likely that American consumers will forgo purchasing Chinese-made solar panels, and will instead install propane.

To make sure this policy had the full intended effect, the administration also plans to charge American businesses that already purchased and sold the Chinese solar panels earlier this year with the 250% tax retroactively.

We know what you’re thinking, “You disappear for five months and now think you can just waltz back in here and start posting like nothing has changed?”

“We wept for you.”

Also, “That hardly sounds fair. These people operated in good faith under the laws that existed at the time."

Ignorance of the laws that haven’t been enacted yet is no excuse.

For example, together with Congress, the Obama administration is attempting to collect tariffs on Chinese off-road tires that were imported years before such a tariff existed.  

Surprisingly, those affected by the new time displacement tax, including one person who in part lost his business over it, are suing.

No doubt you think an important principle is at stake here in that it makes it nearly impossible to plan for the future under such circumstances.  How right you are!

How is the government supposed to plan for the future if the application of its tax laws are going to be subject to every Tom, Dick and Harry with a calendar? It’s hard enough to plan for the future without taking the entire past off the table.

In any case, there are some heartwarming stories coming out of this policy. For example, take Bill Keith, an enterprising entrepreneur who invented an attic fan that runs purely on solar power.  Feted by the Obama administration and used on campaign stops, Mr. Keith created jobs in the U.S. by using only American-made parts for his fans.

Except there are no longer any domestic manufacturers of the solar panels he needs and the IRS is about to ruin him with punitive retroactive tax penalties for using foreign ones.

Okay, that wasn’t as heartwarming as we could have hoped.

Regardless, the point isn’t that President Obama is forcing Americans to pay more for solar panels than they have to or that he’s destroying small businesses with retroactive taxes all in the name of protecting large corporate interests.

It’s that President Obama is for the little guy.

President Obama is for the little guy copy


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August 27, 2012 at 04:33 PM in Current Affairs | Permalink


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Obama isn't the first Demonrat President to enact retroactive taxes--Bill Clinton did it, too. But he was a piker--he just made it effective the first of that year, from when it was enacted in the middle of the year.

Posted by: John Illinois | Aug 28, 2012 8:37:11 AM

I have a gut feeling that pretty soon, enough people are going to stand up and shout "ENOUGH", that Congres will HAVE to listen. And get some cajones.
But then again, maybe it's just the sausage I had for breakfast.

Posted by: barryjo | Aug 28, 2012 9:07:44 AM

Imagine if you had eaten scrapple.

And thanks, John, I had forgotten about Clinton. I vaguely remember being annoyed then too!

Posted by: Planet Moron | Aug 28, 2012 12:53:21 PM

"Scrapple?" That must be an Eastern delicacy. Middle Eastern.

Posted by: barryjo | Aug 29, 2012 8:49:40 AM

You have not been introduced to the culinary delight of... miscellaneous meat-like products? You have to add that to your bucket list.

Posted by: Planet Moron | Aug 29, 2012 4:37:55 PM

This post simultaneously outrages and highly amuses me. I find this incongruous state confusing and disturbing.

Thanks . . . I think.


Posted by: Linda | Aug 29, 2012 8:34:42 PM

Only Obama could find a way of taxing sunlight.

On another note; what happened? Wife buried in the bakyard? Find a briefcase full of drug money in an alley? Or have you joined the ranks of the unemployed for missing too many appointments at the reeducation center? I hear they are all the rage up there in Sodom-On-The-Potomac.

Posted by: John | Aug 30, 2012 12:16:45 AM

I wish my story was that colorful, but alas, nothing much has changed. I barely have time for this (and it will be more of an every-two-or-three days kind of thing for a while) but I just had to come back for my own sanity. (Relatively speaking.)

Posted by: Planet Moron | Aug 30, 2012 6:54:03 AM

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