At a tax symposium at Pepperdine Law School last week, former IRS chief counsel Donald Korb was asked, “On a scale of 1-10 … how damaging is the current IRS scandal?”
His answer: 9.5. Other tax experts on the panel called it “awful,” and said that it has done “tremendous damage.”
I think that’s right. And I think that the damage extends well beyond the Internal Revenue Service. In fact, I think that the government agency suffering the most damage isn’t the IRS, but the National Security Agency. Because the NSA, even more than the IRS, depends on public trust. And now that the IRS has been revealed to be a political weapon, it’s much harder for people to have faith in the NSA. …
… [T]he new “weaponized IRS” has, in fact, come to be seen as illegitimate by many more Americans. I suspect that, over time, this loss of moral legitimacy will cause many to base their tax strategies on what they think they can get away with, not on what they’re entitled to. And when they hear of someone being audited, many Americans will ask not “what did he do wrong?” but “who in government did he offend?”
This is particularly true since the Obama administration is currently changing IRS rules to muzzle Tea Partiers. …
… Spend a little while on Twitter or in Internet comment sections and you’ll see a significant number of people who think that the NSA may have been relaying intelligence about the Mitt Romney campaign to Obama operatives, or that Chief Justice John Roberts’ sudden about-face in the Obamacare case might have been driven by some sort of NSA-facilitated blackmail.
A year ago, these kinds of comments would have been dismissable as paranoid conspiracy theory. But now, while I still don’t think they’re true, they’re no longer obviously crazy. And that’s Obama’s legacy: a government that makes paranoid conspiracy theories seem possibly sane.