The IRS Back Door to the Obamacare Employer Mandate

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Posted by Ryan Ellis on Tuesday, June 30th, 2015, 6:53 PM PERMALINK


Both the NFIB and the Galen Institute remind us today that the IRS has begun implementing a regulatory fine on small employers which is nowhere to be found in the text of the Obamacare law.

No, they were not having a little gallows humor in the wake of King v. Burwell.

Up until now, an employer could reimburse an employee for the latter's purchase of health insurance (or direct health expenses) for her and her family. This was a tax-free reimbursement, free of federal and state income tax and all payroll taxes.

Many small employers, who could not or didn't want to provide group health insurance, took advantage of this option so that their employees could get the same tax treatment on health insurance as their larger business competitors could offer.

Not anymore. 

The IRS has said that any employer participating in such a program can be fined up to $100 per day, or $36,500 per year per employee. This even applies to employers who are not required to offer health insurance under the employer mandate (long delayed, but technically applying to firms with 50 or more employees). This regulation was not called for anywhere in the Obamacare statute.

Why would the IRS do this? Very simply, the goal here is to destroy individual market health insurance, and the employer reimbursement was one of the very few things keeping it alive. It's also a way to bully very small employers (those with fewer than 50 employees and not subject to mandate) to purchase Obamacare group insurance coverage anyway. It's a regulation in search of statutory basis, but the will to power is obvious.

Someone should take this to the Supreme Court...oh wait.

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Lickylick

Ya know, the federal government has absolutely zero jurisdiction over the private sector. I sure do wish people would just learn how to navigate the code and statutes instead of listening to their shyster accountants and lawyers. Cpa's and lawyers have a living to make and lying to you along with their big brother is easy money sticking it to all you dupes hiring them. Jurisdiction is key.

chiefpontiac

The fun is just beginning....


History Shows Connecticut’s Income Tax Hike Will Beget Bigger Government

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Posted on Tuesday, June 30th, 2015, 2:32 PM PERMALINK


Connecticut lawmakers approved budget adjustments shortly after 1 a.m. this morning, the last day of the state’s fiscal year. After passing a budget on June 3rd with large tax hikes that caused many businesses to reconsider their operations in Connecticut, lawmakers in Hartford were shamed into making the changes that they sent to Gov. Malloy last night. The $1.5 billion tax increase that Gov. Malloy and Democratic legislators work to trim over the last several weeks includes an increase in the top income tax rate and the adoption of a unitary corporate tax system that will reduce the job-creating capacity of some of the state’s largest employers.

The tripling of the sales tax on computers and data processing that was in the budget passed four weeks ago was removed from the revised plan that awaits Gov. Malloy’s signature. However, over a billion dollars in higher taxes remain in the final deal, including higher income taxes for individuals, families, and employers across Connecticut.

Connecticut became the most recent state to institute an income tax, which was signed into law by Gov. Lowell Weicker in 1991, and the state has since been a case study demonstrating how instituting and raising income taxes beget more spending and bigger government. In a Forbes column published yesterday, ATR’s Patrick Gleason highlights how, since the enactment of its income tax, the size of Connecticut state government has grown twice as fast as that of neighboring New Hampshire, one of nine states that does not levy an income tax:

“In 1991, Connecticut state spending was 8.4 percent of state GDP and New Hampshire state spending was 6.3 percent of the Granite State economy. From 1991 to 2013, the size of government in Connecticut grew by more than a third, more than double the growth of government in New Hampshire, where the size of government grew 15 percent during that same period. Demonstrating that once a tax is in place it tends to rise, Connecticut’s income tax was 4.5 percent when instituted. 24 years later, the state income tax tops out at 6.7 percent. The budget approved earlier this month would raise the top rate to 6.99 percent.”

The revised budget that Gov. Malloy is expected to sign raises the top marginal income tax rate paid by individuals, families, and small businesses from 6.7 to 6.99 percent. The final budget delays the unitary tax that will cause the bottom lines of many companies to take a hit, but that just gives business owners time to plan a move to a state with a friendly tax climate.

Despite the fact that he promised just nine months ago that “there will not be a tax increase” if reelected, Gov. Malloy is now about to go back on his word and sign into law a more than $1 billion tax increase. Connecticut already has the third highest state and local tax burden in the country, had over dozen state tax increases go into effect just four years ago, and has been hit with over 20 federal tax hikes under President Obama.

Morning Joe host Joe Scarborough was correct when he stated recently that for Connecticut residents, “it’s hard to imagine things could get any worse.”

Photo Credit: 
SRO Photos, https://www.flickr.com/photos/srophotos/

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Social Security Overpays Beneficiaries $38 Billion Over 10 Years

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Posted by Emma Boone on Tuesday, June 30th, 2015, 11:00 AM PERMALINK


According to the United States Social Security website, the Social Security Administration (SSA) funds two of the biggest beneficiary programs, the Social Security Disability Insurance program and the Supplement Security Income program. Though in reality, it is taxpayers who are funding these programs.

A recent report shows that 44.5 percent of Social Security Disability beneficiaries were overpaid at some point over a ten year period, costing taxpayers an estimated $38 billion. The SSA has only been able to recover half of this, leaving billions of taxpayer dollars never to be seen again. The report points to instances where individuals whose benefits terminated- either because they were deceased, their medical condition improved, or they no longer met eligibility requirements- were still receiving benefits from the SSA.

On average, it took the SSA 8.1 months to identify the overpayment. Doubts over the abilities of the SSA have recently become a focus after a consistent five year deficit along with careless and negligent behaviors of the beneficiary programs.

As if this is not enough of a concern, the status of the Disability Insurance (DI) trust fund is quickly dwindling. If the overpaying of beneficiaries continues, the DI trust fund will face at least a $267 billion shortfall and the trust fund will be run dry in two short years.

Efforts to keep the DI trust fund on its feet would mean increasing DI payroll taxes by at least 17 percent, leaving taxpayers even more accountable. Another solution would be to decrease essential funds to beneficiaries by 20 percent. By decreasing funds, the average benefit would be below the federal poverty level and benefiting households would see, on average, a $218 reduction in monthly benefits.

It is time for Congress to make necessary adjustments to the Social Security Administration before time runs out and the well runs dry. American taxpayers had have enough of the SSA’s negligence and must call for Congress to make amends to these taxpayer backed programs.

Photo Credit: 
Damien Benoit

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BrookPutnam15

As Social Security fails to adequately handle fraud and mismanaged funds, Millennials are disgusted at the state of the program. Some 60% of them believe that Social Security will not be there for them, and they're right! I write about these issues on my blog and I encourage everyone to sign the petition to allow every American the chance to opt-out of Social Security at http://takebackyoursixpercent....


Hillary Voted Against Cap Gains and Dividend Tax Cuts As Senator

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Posted by Alexander Hendrie on Tuesday, June 30th, 2015, 8:00 AM PERMALINK


As a U.S. Senator, Hillary Clinton voted against a tax relief package that cut the capital gains and dividends tax rate, voting no on the “Jobs and Growth Tax Relief Reconciliation Act” (H.R. 2).

On May 15, 2003, she voted no on the bill, which passed 51-49. She later voted no on the conference report on May 23, 2013, which also passed, 51-50.

About the bill:

-The bill cut the capital gains tax rate from 20 percent to 15 percent and the top tax rate on dividend income from 38.6 percent to 15 percent.

-At the time, almost 50 percent of American families owned mutual funds and this legislation provided much-needed tax relief for these millions of Americans across the country.

-H.R. 2 also increased tax-free capital investment by small businesses and bonus depreciation on investment paid between 2003 and 2005.

-Finally, the bill accelerated income tax cuts across the board in order to provide immediate tax relief for all Americans. 

Even though this legislation provided tax relief to millions of American families and small businesses, Clinton voted no and characterized the legislation as a “plan targeted to a few” that would not help create jobs or restore prosperity.

The U.S. is saddled with one of the highest personal dividend income tax rates in the OECD, according to the Tax Foundation.

 

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United States Mission Geneva https://www.flickr.com/photos/us-mission/

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Eight Reasons Congress Should Let Ex-Im RIP

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Posted by Alexander Hendrie, Emma Boone on Monday, June 29th, 2015, 4:40 PM PERMALINK


Tomorrow the charter for the Export-Import Bank expires, putting an end to an icon of corporate welfare and crony capitalism. Ex-Im’s supporters continue to insist American businesses rely on the bank to compete despite these claims being proven false time and time again.

Many in Washington hope to renew the charter of the bank in the coming months. Here are eight reasons why Congress must not bring Ex-Im back:

1. $3.2 Billion in Loans to State Owned Airlines in Oil-Rich United Arab Emirates

Between 2009 and 2012, Ex-Im has given out $3.2 billion in loan guarantees to three state owned airlines from the United Arab Emirates to purchase airplanes from Boeing. One of the companies, Emirate Airlines, has stated such loans are unnecessary. Nevertheless, the oil rich nation officials are more than happy to accept billions of American taxpayer dollars to subsidize such generous loans.

2. Ex-Im Finances Transactions Between Two Chinese Government Entities

In yet another ‘Deal of the Day,’ Ex-Im has provided the second largest non-US company in the world, Sinopec, over $200,000 in loans only for the corporation to facilitate exports to Sinopec’s U.S. subsidiary. If you’re having flashbacks of the $15 million Caterpillar, Inc. loan that allowed the giant corporation to buy products from themselves, you would be correct.

3. Solyndra Receives $10 Million A Year Before Declaring Bankruptcy

In another wasteful loan, Ex-Im gave Obama’s favorite renewable energy company Solyndra a $10 million loan for exports. Unsurprisingly, just a year after receiving this hefty loan, Solyndra went bankrupt, as predicated by the Department of Energy.

4. $700 Million Loan Given to Australian Mining Giant

Nearly $700 million in loans was given to companies exporting equipment to Australian based mining giant, Roy Hill Mine. It’s questionable that a loan this large was even necessary considering the mine is owned by the richest woman in Australia. Adding to the disappointment, the Heritage Foundation estimated a $1.2 billion decrease in U.S. sales will be the result of this loan, as the company competes with U.S. iron ore exports.

5. Ex-Im Finances Indian Coal Plant that Displaces Indigenous Population

Despite the Obama Administration’s efforts to crack down on fossil fuels and impose burdensome regulations on American coal plants, Ex-Im gave $917 million in loans to the Sasan Coal Power Plant in India. According to a report by the Sierra Club, this power plant may have displaced indigenous residents. The report described numerous alarming abuses including forced relocation, lack of compensation for residents who lost property and denying children access to schools.

6. State Owned Saudi Arabian Oil Giant Receives Nearly $5 Billion Loan

In 2012 the Saudi Arabian owned oil company, Saudi Aramco, was given $4.97 billion in loans. Given the fact that this is the world’s largest oil company, it’s extremely unlikely that the company was in dire need of such a large loan. Even if it was, the company could have received such a loan from the private sector.

7. Ex-Im Finances $3 Billion Natural Gas Project that leads to Villagers Deaths

Ex-Im gave $3 billion to help finance a liquefied natural gas project in Papua, New Guinea. The House Financial Services Committee noted that three environmental and development groups had warned the Ex-Im bank about potential environment, social, and human rights risks behind the project, including a possible landslide due to “poor management practices at a local quarry.” On January 12, 2012 a landslide did occur, taking the lives of 27 villagers.

8. 500 Million Loan Given to Mongolia Copper Mine

Despite the Copper Market Forecast predicting that refined copper was to exceed demand by more than 390,000 metric tons this year, Ex-Im still deemed it necessary to give competing Mongolian copper mine $500 million in loans. This loan undoubtedly competes with excavations in Arizona, Utah and New Mexico, to name a few.

Photo Credit: 
Emmett Tullos, https://www.flickr.com/photos/emmett_ns_tullos/

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ECPA Reform Finally on House Radar

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Posted by Timothy Wilt on Monday, June 29th, 2015, 2:44 PM PERMALINK


Recent reports indicate that the House Judiciary Committee intends to mark-up a bill that will finally extend Fourth Amendment protections to email correspondence. The bill, H.R. 699, The Email Privacy Act, introduced by Reps. Kevin Yoder (R-Kan.) and Jared Polis (D-Colo.), would update the 1986 Electronic Communications Privacy Act, ensuring constitutional protections and legal standards desperately missing in today’s digital world. 

Although the bill enjoys wide bipartisan support and recently became the most cosponsored bill in the House with 284 cosponsors, the Judiciary Committee has neglected to move the bill. As part of the Digital Fourth Coalition, an ideologically diverse group that actively campaigns for Fourth Amendment rights in the digital world, Americans for Tax Reform has recently penned a letter urging Congress to consider this important piece of legislation.

Shortly thereafter, POLITICO reported a markup expected in July.  

Katie McAuliffe, Federal Affairs Manager at ATR, released this statement supporting the bill:

“When ECPA was written in 1986, most Americans did not have email accounts. It was impossible for Congress to foresee the type of technological advancements nearly three decades later. As a result, our emails, photos, documents and other items stored in the cloud are in jeopardy of government intrusion. Privacy rights should not stop online. The Email Privacy Act is an important bill to protect the privacy of all Americans and should be voted on without delay.”

The Email Privacy Act would require government agencies to get a warrant before searching through an individual’s private emails, which is a more stringent requirement than the mere subpoena needed to do so under current law. There should be no discrimination between a citizen’s physical mail and their electronic mail, and yet under ECPA electronic mail is given vastly fewer protections.

The Fourth Amendment rights guaranteed by the Constitution do not apply to only some forms of communication, but are rather safe-guards against all forms of government intrusion into the privacy of citizens.  In 1986, when the ECPA became law, few considered the Internet the robust medium for interaction that it is today and it is understandable the policy reflects this sentiment.

Today, however, we live in a world that can no longer deny the prolific role of Internet for communication. In this world, every day that passes without sensible policy that acknowledges electronic correspondence as the same as physical mail, and thus worthy of the same privacy protections, is an insult to the founding principles of our nation.

The time to end digital discrimination is now. The Email Privacy Act is the first step in this fight, the people want it, all political ideologies agree on it, and it is time for Congress to act.

Please Click Here to sign a petition urging the House Judiciary Committee to approve the bill. 

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Josh Hallett

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Norquist: “The criminal justice system does a great deal of damage”

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Posted by Danil Zelenkov on Monday, June 29th, 2015, 10:38 AM PERMALINK


Grover Norquist made an appearance on MSNBC’s Politics Nation to discuss the state of our nation’s criminal justice system. In the exchange, Norquist noted that in its current form, “the criminal justice system does a great deal of damage.” Recently-launched groups like the Coalition for Public Safety have started a new campaign to rein in the excesses of our justice system. The Coalition—which includes Americans for Tax Reform and Right on Crime—will tackle wasteful and counterproductive practices found at all levels of government. Watch Norquist’s full interview bellow:

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Montgomery County Maryland's Misguided Vapor Tax

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Posted by Nathaniel Rome on Monday, June 29th, 2015, 10:01 AM PERMALINK


This August, Montgomery County, Maryland will become the first county in the country to adopt a specialized excise tax on e-cigarettes. A tax of 30 percent will be charged on distributors who operate in the county. This new tax - while masked as a public health initiative - is yet another attempt by local governments to raise cash while strangling new industries.

The lead sponsor of this bill, Councilman Tom Hucker, argued that “E-cigarettes should be treated similarly to tobacco products,” referring to the current 30 percent tax on tobacco products in Maryland.

This is fallacious for several reasons. First, e-cigarettes and vapor products are far healthier than traditional combustible cigarettes. E-cigarettes are tobacco-free and lack the carcinogenic chemicals that make smoking so deadly. Second, e-cigarettes are being used by many as an effective way to quit smoking, since users can wean themselves off of the nicotine. As one business owner put it, watching customers quit is a “concern we have for our business… but it’s very rewarding.”

If e-cigarettes are a healthier alternative to tobacco products and can help people quit smoking, why would the government want to subject the industry to a crippling tax?

Because it’s not about health, it’s about money. Advocates claim that this tax would raise between $1.5 and $2.5 million for county coffers. This is absurd. Many customers will simply purchase vapor products online or across county lines to avoid the tax. More likely than not, consumers will have no trouble getting their products tax-free and retailers may be forced across county lines or out of business.

A 20 cents per mL vapor tax that just passed statewide in Kansas is predicted to generate only $2 million in optimistic estimates. Given that Montgomery County has just one-third the population of Kansas and has much greater access to products in neighboring counties, it is hard to imagine that the Montgomery County tax would raise anywhere near the projections.

Electronic cigarettes and vapor products should not be subjected to “sin taxes”; the users are overwhelmingly people trying to atone for their sins by quitting their use of tobacco.

Montgomery County’s misguided new tax - and tax proposals like this all around the country - threatens to kill this fledgling new industry. It does this while adding a disincentive for consumers to make the switch from tobacco to tobacco-free technology products, working at cross-purposes of decades of anti-smoking efforts to improve public health. 

Photo Credit: 
Ecig Click, https://www.flickr.com/photos/ecigclick/

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Lickylick

What does anyone expect from the greed infused lying scumbags that are known better as politicians? They lie, they steal and they cheat. They are greedy, self righteous, self serving hot air bags.


How Exactly Did Lois Lerner’s Hard Drive Receive “scoring on the top platter”?

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Posted by Alexander Hendrie on Monday, June 29th, 2015, 9:59 AM PERMALINK


Newly released information on the Lois Lerner email scandal raises questions as to whether there was some kind of deliberate act to physically damage Lerner’s hard drive.

According to testimony to the House Committee on Oversight and Government Reform provided by the Treasury Inspector General for Tax Administration (TIGTA), an IRS technician examining Lerner’s hard drive noticed “scoring on the top platter of the drive.”

As the written testimony states:

“After receiving the hard drive from the IT technician, the IRS-CI technician attempted, but was unsuccessful in recovering data, so he returned the hard drive to the IT depot at the IRS headquarters building for its ultimate destruction. According to the IRS-CI technician, he noted some scoring on the top platter of the drive, and he believed there were additional steps that could have been taken to attempt to recover data. IRS IT management determined the extra effort to recover data from Ms. Lerner’s hard drive was not worth the expense.”

While the testimony notes “scoring” it does not provide specific information on the extent of the damage, or speculate as to what caused the damage.

[Pictured below is a hard drive with top platter]

So how did the scoring get there? Let’s start with what is known:

- According to the testimony, Lerner’s laptop stopped communicating with the IRS server on Saturday June 11, 2011, between 5:00 p.m. and 7:00 p.m.

- According to the testimony, "Based on consistent network reporting for more than a week, the laptop computer was likely located in Ms. Lerner’s office." 

- On Monday June 13, 2011, Lerner reported the laptop inoperable. 

- Her laptop was then serviced by an IRS IT staff technician and a Hewlett-Packard contractor. Note how the HP contractor thought the hard drive crashed due to a physical impact:

“When asked about the possible cause of the hard drive failure, the HP technician opined that heat-related failures are not seen often, and based on the information provided to him, the hard drive more than likely crashed due to an impact of some sort. However, because the HP technician did not examine the hard drive as part of his work on the laptop, it could not be determined why it crashed.” An earlier inspection of her laptop noted no “visible damage to the laptop computer itself.”

- As the report states, TIGTA was unable to determine whether anyone had entered Lois Lerner’s office during the date in question because entry logs had been destroyed after a year in keeping with the vendor's operating procedures. As the report states:

“Attempts were made to determine if anyone entered Ms. Lerner’s office prior to the hard drive crash on June 11, 2011; however, the entry logs that would have recorded any entry into the building were destroyed by the building security vendor after one year of retention, or sometime in 2012. The destruction of the logs after one year falls within the vendor’s standard operating procedures.”

- TIGTA’s testimony states that the laptop as a whole appeared undamaged. When Lerner’s laptop was first inspected by both an assigned IT specialist and Hewlett Packard contractor they both stated that “they did not note any visible damage to the laptop computer itself.”

The testimony does not speculate how the hard drive was “scored” yet the computer remained undamaged. However, given these facts it seems logical to question what -- or who -- caused the damage to the hard drive.

TIGTA officials have said they plan to release the full findings “in the very near future.” 

Photo Credit: 
Simon Cunningham; https://www.flickr.com/photos/lendingmemo/

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Lickylick

You can throw hard drives against a brick wall and the top platter won't get scoring on it. The way you score those platters is by shoving something metal into one of those holes that are covered by stickers on the drive that say on them "removing this label voids warranty". It is that simple. Lerner knew how to destroy the drive and did so. If I was a pos like Lerner and was caught doing what she did, I too would have destroyed the evidence. Can't blame her but it doesn't change the fact she is a pos and should be thrown in jail along with her accomplices.

Daniel Braisted

When is someone in the Obama ("not smidgen of wrong doing at the IRS") Administration Going step forward and out his secret dealings or are they waiting for a book deal. Guess we could wait for the President to read about the above in the morning paper and be "shocked" and promise to "get to the bottom of this".

Kernighan

Such a person will need massive protection, and complete anonymity. There are apparently several people now deceased who tried such a thing or were suspected of being able to try such a thing, either with this politician, or with earlier political dynasty types from the same party. The sort of people who pull off stunts like this are actually quite good at it. LBJ had one of these people named Malcom "Mac" Wallace. Look him up in wikispooks. Assassin needed for politician?


Lindsey Graham Introduces Restoration of America’s Wire Act in Senate

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Posted by Katie McAuliffe on Friday, June 26th, 2015, 2:38 PM PERMALINK


WASHINGTON, D.C. – June 24, Sen. Lindsey Graham (R-S.C.) introduced the Restoration of America’s Wire Act (RAWA), S. 1668. The bill’s purpose is not to “restore” any legislation to its original intent, but for the fed to further encroach into state’s jurisdiction.

The following can be attributed to Grover Norquist, President of Americans for Tax Reform:

“State legislatures are more than capable of making their own decisions about gambling online in their states just like they have done with live casinos.  They don’t need the federal government babysitting them.  The Internet should be a freedom zone, and this is a piece of that pie.”

Precedent since the birth of the Republic has been to leave decisions about gambling in the hands of the states. The states should continue to make their own decisions about the regulation of intrastate online gambling, just as they have done with brick-and-mortar gambling for hundreds of years. It has served the country well for these matters to be settled at the state level.

There are strong opinions and business interests surrounding gambling in general, but, fundamentally, this is a question of the defense of the 10th Amendment of the U.S. Constitution.

Photo Credit: 
Thomas Hawk - https://www.flickr.com/photos/thomashawk/

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Mike Qualley

Thank you for speaking out against this senseless bill that restores nothing and protects no one other than Sheldon Adelson and his casinos. Furthermore, it is basically a smokescreen to use Congress to stop free market competition for his casinos. Take note in this new bill the carve-out for online gambling (everything but poker) via mobile apps. Adelson has been making money off online gambling via two mobile apps offered by his Venetian and Palazzo in Las Vegas for the past 2-3 years now. It is blatantly obvious what he is up to with his RAWA bill. This video show it... https://www.youtube.com/watch?...


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