Be wary of the IRS

As the Saipan Tribune recently confirmed, many local residents are excited by the prospect of a child tax “credit” from Uncle Sam, as the IRS claims that CNMI parents are now eligible for as much as $500 per child, courtesy of the U.S. treasury (of the U.S. taxpayer, who may not get anything in return).

The Teno administration is also quite excited. The administration looks forward to the multiplier effects of these federal tax “credits.” The money will no doubt circulate throughout the local economy and bring some real benefits. But at what price?

We must question the motives behind this new federal move. Why is the notorious IRS suddenly ruling in our favor? Is it really in our favor? Are there any ulterior motives behind this seemingly benevolent move?

Indeed, it is awfully difficult to believe that the typically ruthless IRS, which, until quite recently, did not even permit a kidnapped child tax deduction after the first year the child was kidnapped, is acting out of kind and generous motives. Again, we have to ask: What’s in it for the IRS? (For that matter, what’s in it for the U.S. Federal Government?) Will the IRS be empowered by taking on this new benevolent role? Will this entitle the IRS to a bigger share of the U.S. Federal budget (for territorial administrative purposes?

Let us be suspicious of this seemingly auspicious Federal development. It might very well be ominous, heralding a greater and much more intruisve Federal role in our daily lives. After all, it involves the U.S. IRS, and we can never be too sure about this particular Federal agency. We certainly don’t ever want to be subject to its oppressive tax jurisdiction.

What worries this scribe is the possibility of a Trojan Horse ploy. The IRS child tax credit may be the ploy that opens the doors to a future Federal tax takeover. If we apply for these IRS child tax credits, we might well be compromising our privacy and subjecting our financial lives to intensive IRS scrutiny.

A Federal takeover may not be confined to immigration and minimum wage policies alone. Our tax autonomy may be equally at risk. The CNMI should not further surrender its precious local self-government and sovereignty for Federal subsidies.

In many respects, it almost appears as though the current administration is not nearly as concerned about CNMI sovereignty as some of its predecessors: most notably, former Governors Larry Guerrero and Froilan C. Tenorio (also affectionately known as “The Froister”). Froilan Tenorio, in particular, would certainly be very wary of Federal agents bearing gifts.