Archive for April 23rd, 2008

IRA may continue taxing whistleblower compensatory awards

FOR IMMEDIATE RELEASE
APRIL 21, 2008

 

U.S. Supreme Court Refuses to Hear Murphy v. IRS

Advocates To Continue Pressing for Changes in Civil Rights Tax Law

 

WASHINGTON, DC — Today, the United States Supreme Court announced its decision not to grant certiorari in the case of Murphy v. IRS. The order, posted on the Court’s website this morning, means that the IRS can continue to tax non-pecuniary compensatory damages awarded to victims of whistleblower retaliation and other civil rights violations. These damage awards, which are intended to make the victim “whole” again, include payments for loss of reputation and emotional distress.

The case was brought by Marrita Murphy, an environmental whistleblower who won her case before Department of Labor, and was awarded compensatory damages to vindicate her rights under six federal environmental whistleblower statutes. Murphy filed suit when the IRS demanded that she pay taxes on the “make-whole” award as if it were income. After having her case dismissed, Murphy filed an appeal.

After full briefing and oral argument, the Appeals court initially held that Murphy’s award was not income and the tax on her damages violated the U.S. Constitution. Then, under pressure from the Bush Administration, the judges decided to rehear the case. In this ruling, Murphy II, the D.C. Circuit reversed its own previous decision, declaring that non-physical compensatory damages are taxable as gross income.

National Whistleblower Center General Counsel David K Colapinto, who represents Ms. Murphy, released the following statements regarding the Court’s decision:

“The DC Circuit’s decision was contradictory and wrong. It will have a tragic impact on thousands of whistleblowers and victims of discrimination. We are not surprised though, that the Supreme Court declined to hear the case, as there was not a traditional “split in the circuits,” as the DC Circuit was the first court to take this issue on. Given the DC Circuit’s difficulty in dealing with this issue, I expect that it will be taken up in other courts across the country.”

“It is unfair and unconstitutional to tax victims of discrimination and retaliation when the awards were simply compensation to make them whole again. The money is to restore a loss for personal injury; it is not income.”

Unfortunately, as a result of the Court’s decision not to hear the Murphy case, whistleblowers and other civil rights victims whose make whole compensatory damages awards are taxed will have to continue to fight the IRS through the courts. The only alternative to continued litigation is for Congress to change the tax code.
Currently pending before Congress is the Civil Rights Tax Relief Act of 2007 (“CRTRA”), H.R. 1540, which would end unfair taxation of noneconomic damages received by those who have suffered unlawful discrimination in the workplace or other violations of their employment rights.

The CRTRA was introduced in the House by Representative John Lewis (D-GA), who was joined by a bipartisan group of original CRTRA cosponsors, including Representatives Deborah Pryce (R-OH), Sander Levin (D-MI), Jim Ramstad (R-MN), Xavier Becerra (D-CA), and Phil English (R-PA). The Senate companion bill was introduced by Senators Jeff Bingaman (D-NM) and Susan Collins (R-ME).

The CRTRA has broad bi-partisan support. It is supported by employer and employee advocacy groups alike because both business and employee organizations recognize that taxing non-economic make whole compensatory damages makes settlement more difficult and results in protracted litigation in employment disputes.

 

  • For additional information on Murphy v. IRS, including links to the briefs, Click Here

     -end-

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Since 1988 the NWC has championed whistleblower protection. The NWC is currently supporting FBI Whistleblower Bassem Youssef, who has reported serious misconduct in the War on Terror, and the NWC is currently assisting Bunnatine Greenhouse (the former Army Corps of Engineers top contracting officer who opposed the no-bid multi billion dollar contracts awarded to Halliburton for the reconstruction of Iraq)

For more information, please visit www.whistleblowers.org and www.whistleblowersblog.org.

Add comment April 23, 2008

Former Justice Offical In Trouble for Relationship with Abramoff

Former Justice Official Accused of Exchanging Favors With Abramoff

By James V. Grimaldi
Washington Post Staff Writer
Tuesday, April 22, 2008; A08

A federal prosecutor in Maryland has accused a Justice Department official who became the former deputy chief of staff of the criminal division of helping Republican lobbyist Jack Abramoff in exchange for a “stream of things of value,” according to criminal papers filed yesterday.

Robert E. Coughlin II, who two years ago received a prestigious attorney general’s award, provided “assistance to a lobbyist and the lobbyist’s law/lobbying firm on particular matters before DOJ while” accepting gifts and favors and discussing a possible job offer, the federal court filing said.

The documents do not name the lobbyist or the firm, but The Washington Post reported last year that Coughlin resigned on April 6, 2007, and was under investigation by a federal task force looking into Abramoff’s activities. At the time of Coughlin’s allegedly improper activities, Abramoff worked for the lobbying firm Greenberg Traurig.

Several sources familiar with the matter said that Coughlin was lobbied by Abramoff colleague Kevin A. Ring, whose activities remain under investigation. One source, who asked not to be named because of the sensitivity of the investigation, said Ring lobbied Coughlin to get federal money from the Bureau of Prisons, a division of the Justice Department, to build a jail for the Choctaw tribe, one of Abramoff’s clients.

Both Coughlin and Ring worked as staffers in the 1990s to then-Sen. John D. Ashcroft (R-Mo.), who became attorney general in 2001. During the period depicted in the court documents, Coughlin worked in the Office of Legislative and Intergovernmental Affairs.

When Coughlin joined the criminal division in 2005, he was recused from the Abramoff inquiry because of a longtime personal friendship with Ring. Investigators came across Coughlin’s name while trying to ascertain whether Ring improperly sought or received favors for lobbying clients from people in government, sources told The Post last year.

The gifts Coughlin received are not described, but Abramoff was found guilty in 2006 of giving public officials sports and entertainment tickets, meals at his downtown restaurant and other gratuities to get favors. Ring took Coughlin to sporting events with tickets provided by his lobbying firm, according to sources familiar with the inquiry.

Ring declined comment yesterday.

Abramoff, who has provided extensive assistance to prosecutors, is in federal prison in Maryland serving time for a Florida fraud conviction and is awaiting sentencing on separate charges of mail fraud, conspiracy and tax evasion.

Coughlin was accused of a felony count of violating the federal conflict-of-interest statute. The offense, which allegedly occurred between March 2001 and October 2003, was outlined in a filing known as a criminal information, which prosecutors often use rather than an indictment when the defendant is cooperating with an ongoing investigation.

A plea hearing for Coughlin was scheduled for today. His attorney did not respond yesterday to a phone call and an e-mail requesting comment.

Coughlin is the second Justice Department official whose name has surfaced in the wide-ranging Abramoff investigation. Last year, Sue Ellen Wooldridge, deputy assistant attorney general for environment and natural resources, abruptly resigned when her boyfriend, whom she later married, was notified that he was a criminal target. J. Steven Griles, former deputy secretary of the Interior Department, later pleaded guilty to lying to Congress about Abramoff.

The task force has tracked millions of dollars in meals, trips, tickets, gifts and campaign contributions that the Abramoff lobbying team lavished on lawmakers and staffers. The investigation has resulted in convictions and guilty pleas from lobbyists, staffers, two administration officials and a congressman.

Staff writer Carrie Johnson contributed to this report.

Add comment April 23, 2008

Senator Murray Rallies Support for The Boeing Company

Someone sent this to me today. – GFS 

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I received this quite a while ago, but had not had time to respond to it.  I am responding now.  I would buy the PR message here, if Boeing did not also outsource much of its work overseas as well.  It is rather like the pot calling the kettle rusty for Boeing to make a huge issue of some work being done overseas by Northrop Grumman, as some of the work would also be done here.  I fail to see the difference in actual business practices between Boeing and any of these other companies, frankly.  I do not appreciate the loss of American jobs, as many of Senator Murray’s constituents would agree, particularly when the job losses are because of Boeings efforts to try to court foreign interests for sales of airplanes and other products.   The argument would be much more compelling (and honest) if Boeing did not also outsource so much itself. 

 

It was not that many years ago that Boeing “downsized, right sized,” or whatever they chose to call it and reduced the number of machinists in Seattle and other places I expect, and outsourced those jobs to China among other places for the making of parts.  A few years ago, I heard someone who worked for Boeing complaining that the parts they were getting from China were so bad, they had to be re-machined here in Seattle, which rather negated much of the cost savings to the company. 

 

Also, outsourcing the composite material manufacturing made no sense, because of consequent loss of jobs stateside, as well as putting that technology at risk, by allowing foreign workers and managers access to what was American  cutting-edge technology, (used first militarily in defense contracts), so that we most likely will lose that edge many years earlier than we should have.  We used to stay about 7 years ahead, I’m told, but due to poor business decisions, and sloppy security practices, that lead has been greatly reduced, causing more pressure to develop new technology faster to keep at least abreast with our “competition,” and also a financial disadvantage to the US Taxpayers as well, as new products must be purchased sooner and more often.  Senator Murray, It appears foolish to frame the problem this way.  The whole sorry mess must be cleaned up and soon! 

 

 

 

—–Original Message—–
From: Patty Murray [mailto:webmaster@murray.senate.gov]
Sent: Thursday, March 06, 2008 8:11 PM
To:
Subject: Don’t Outsource Our Aerospace Industry

 


 

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After Air Force Decides to Outsource American Jobs and Military Capabilities, Murray Vows to Fight that Decision

 

 


This week my colleagues and I in Congress began to fight back against the Air Force’s decision to award a $40 billion contract to build our aerial refueling tankers to the European-based company Airbus. As our nation’s economy struggles and our troops are deployed around the world, we can not afford to outsource American jobs and military capabilities. In the coming days, weeks, and months I will continue to speak out, demand answers from the Air Force, and work to change this decision.

Join the Fight!

…………………………………..

Last Friday (2/29), I stood with the men and women of Boeing in Everett as the Air Force announced that it would be outsourcing a $40 billion contract to build

Senator Murray with Boeing Workers

Senator Murray joins Boeing workers to hear the Air Force’s shocking decision to award the tanker contract to Airbus.

aerial refueling tankers to the European company Airbus. Boeing workers were shocked, angry, and wanted answers – and so do I.

Awarding this critical military contract to Airbus, a company that is heavily subsidized by European governments, is a threat to our economic, military, and trade security. At a time when families are struggling and unemployment is rising at home, it is unacceptable that we are investing in European jobs instead of creating 44,000 new jobs here. At a time when we are engaged in two wars, we need to ask ourselves whether we should place war-fighting tools and technology in foreign hands. And as we continue to compete in a global market, we need to ask why we are giving $40 billion to a company that our government has brought a World Trade Organization (WTO) illegal subsidies case against.

…………………………………………………………………………

Senator Murray’s Fight This Week…

Statement by Murray, Cantwell, Dicks, Larsen, Inslee, Smith, McDermott and Reichert on Tanker Decision

Washington and Kansas Delegations Ask Gates to Debrief Boeing this Week

Murray Angered Air Force is Outsourcing American Military Capabilities

Murray Rails Against Outsourcing Military Capabilities and Jobs to European Company Airbus on the Senate FloorWatch the Speech

Senators Decry Decision to Outsource Tanker Jobs

Murray, Dicks Announce Boeing Debrief to Happen this Week

Senator Murray Debunks Airbus Claims in Speech on the Senate Floor

It's NOT American Made

The Future of Our Air Force

Hear the Speech

Murray Questions Airbus Claims of Tanker Deal’s Effect on U.S. Economy – Flashback: In 2003, Commerce Department Debunked Airbus Inflated Job Numbers, Found Only 500 of 10,000 Jobs European Company Claimed

Murray Encourages People to ‘Join the Fight’

Air Force Tankers: Murray Decries Outsourcing of Jobs and Military Technology in Speech on Senate Floor

…………………………………………………………………………

In the News…

“At Boeing, shock — and then anger” – Seattle PI

“Murray Delivers Hard-Hitting Speech On Senate Floor” – KIRO 7 Seattle

“Military planes must be made by U.S. firms” – Walla Walla Union Bulletin

 

 

 

 

After Air Force Decides to Outsource American Jobs and Military Capabilities, Murray Vows to Fight that Decision

 


This week my colleagues and I in Congress began to fight back against the Air Force’s decision to award a $40 billion contract to build our aerial refueling tankers to the European-based company Airbus. As our nation’s economy struggles and our troops are deployed around the world, we can not afford to outsource American jobs and military capabilities. In the coming days, weeks, and months I will continue to speak out, demand answers from the Air Force, and work to change this decision.

Join the Fight!

…………………………………..

Last Friday (2/29), I stood with the men and women of Boeing in Everett as the Air Force announced that it would be outsourcing a $40 billion contract to build

Senator Murray with Boeing Workers

Senator Murray joins Boeing workers to hear the Air Force’s shocking decision to award the tanker contract to Airbus.

aerial refueling tankers to the European company Airbus. Boeing workers were shocked, angry, and wanted answers – and so do I.

Awarding this critical military contract to Airbus, a company that is heavily subsidized by European governments, is a threat to our economic, military, and trade security. At a time when families are struggling and unemployment is rising at home, it is unacceptable that we are investing in European jobs instead of creating 44,000 new jobs here. At a time when we are engaged in two wars, we need to ask ourselves whether we should place war-fighting tools and technology in foreign hands. And as we continue to compete in a global market, we need to ask why we are giving $40 billion to a company that our government has brought a World Trade Organization (WTO) illegal subsidies case against.

…………………………………………………………………………

Senator Murray’s Fight This Week…

Statement by Murray, Cantwell, Dicks, Larsen, Inslee, Smith, McDermott and Reichert on Tanker Decision

Washington and Kansas Delegations Ask Gates to Debrief Boeing this Week

Murray Angered Air Force is Outsourcing American Military Capabilities

Murray Rails Against Outsourcing Military Capabilities and Jobs to European Company Airbus on the Senate FloorWatch the Speech

Senators Decry Decision to Outsource Tanker Jobs

Murray, Dicks Announce Boeing Debrief to Happen this Week

Senator Murray Debunks Airbus Claims in Speech on the Senate Floor

It's NOT American Made

The Future of Our Air Force

Hear the Speech

Murray Questions Airbus Claims of Tanker Deal’s Effect on U.S. Economy – Flashback: In 2003, Commerce Department Debunked Airbus Inflated Job Numbers, Found Only 500 of 10,000 Jobs European Company Claimed

Murray Encourages People to ‘Join the Fight’

Air Force Tankers: Murray Decries Outsourcing of Jobs and Military Technology in Speech on Senate Floor

…………………………………………………………………………

In the News…

“At Boeing, shock — and then anger” – Seattle PI

“Murray Delivers Hard-Hitting Speech On Senate Floor” – KIRO 7 Seattle

“Military planes must be made by U.S. firms” – Walla Walla Union Bulletin

 

Add comment April 23, 2008


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