My Tax Audits: A Love Story

(Wiki commons)

The first time I went to the local IRS waiting room to meet the person who would be auditing me I imagined my auditor would be a monster, someone like George Harrison's "Taxman."

However, my actual auditor turned out to be a lovely young woman fresh out of college and more than willing to share with me the ins and outs of the auditing process.

Over the course of that first audit, which lasted several weeks, I gradually learned how to comply with the arcane rules I had clearly violated while trying to juggle a full-time job, two part-time projects and some random income as a freelance writer.

One of my main problems was that I couldn't convince her that my workspace was a legitimate home office, because it was also used as the kitchen, dining room, and playroom by my three young children.

Also, I had not kept a written record of my many lunches and business meetings or of my frequent travel as I juggled work assignments. The agency clearly had not yet figured out how to handle a multitasker, as the word had only originated recently (1966) and was not yet commonly applied to human beings. 

By the end of that first audit, my auditor ruled that I owed Uncle Sam enough in additional taxes and penalties that it automatically triggered audits for the two subsequent tax years, focusing on the same set of issues.

But I wasn't about to suffer the same fate two times in a row, let alone three. Besides, I had come to like my auditor and as we parted after that first go-around, she told me,"You know, you can request me to be your auditor for the next one if you want to, you have a right to do that."

So when I showed up for my second audit, I requested to be assigned the same auditor and the IRS granted my request. This time, I showed up with a complete printed register of all of my lunches and meetings, tons of receipts (all numbered consistent with the register), and a more convincing argument that my home office was legit as it now consisted of a desk in the corner of my bedroom.

There were no toys or dinner plates on my desk when the auditor paid her visit for the mandatory inspection, but there was a plate of cookies.

That second audit ended much better -- in a virtual tie -- I didn't owe the IRS anything beyond what I had paid when I filed my tax return.

In due time the third audit commenced. By now, I was determined to reclaim some of the money confiscated by the agency back in that first audit. I again requested the same auditor. By now I looked forward to renewing our acquaintance and continuing to demonstrate that I was a fast learner. 

She seemed please to see me again too. This time around we had long conversations during which she told me about her dream to get out of the huge, frustrating government bureaucracy and get a job at one of the Big Six accounting firms. 

We’d become friends by now, and our conversations were distracting enough that she only had time to give a cursory check of the impressive documentation I had prepared of my business meals and meetings, global travel, and an extensively outfitted home office that transformed what had previously been my bedroom into a distinctly professional workspace.

In the end, my lovely auditor gave me some welcome news: My arguments and documentation were persuasive. The IRS would be issuing me a refund -- almost identical to the excess taxes, penalties and fees assessed me back in the first year of our auditing relationship.

So in the end it was one win for the IRS, one win for me, and one draw. Net-net, nothing was lost, nothing was gained, except one new friend.

And yes, I admit it. I had developed a bit of a crush on my IRS auditor. Enough so that I almost wished that I could be audited again.

Almost.

HEADLINES:

• Louisiana judge rules university student Mahmoud Khalil eligible for deportation (WP)

• Academics Fleeing the U.S. for Europe (NPR)

• The Supreme Court just set up a potentially huge clash with Trump (WP)

• Trump Is Already Undermining the Next Election (Atlantic)

• The U.S. still has higher import taxes than the ones that deepened and locked in the Great Depression, even after President Donald Trump's partial backtrack, worrying economists, including Janet Yellen and Nobel laureate Paul Krugman, who unloaded on the president in a blistering post. Still, Trump claimed he's "very happy with the way the country's running." [HuffPost]

• Trump Says He Is Serious About Staying in Office Past 2028 (Atlantic)

• China raises duties on US goods to 125%, calls Trump tariff hikes a 'joke' (Reuters)

• U.S. and China Headed for ‘Monumental’ Split, Putting World Economy on Edge (NYT)

• US consumer sentiment plummets to second-lowest level on records going back to 1952 (CNN)

• Inflation outlook climbs after new tariffs (The Hill)

• Staff cuts begin at NEH, threatening humanities programs across U.S. (WP)

• Citizenship voting requirement in SAVE Act has no basis in the Constitution – and ignores precedent that only states decide who gets to vote (The Conversation)

• Meta goes to trial to avoid a breakup of Instagram and WhatsApp (Verge)

• “Not Just Measles”: Whooping Cough Cases Are Soaring as Vaccine Rates Decline (ProPublica)

• Plunge in Oil Prices Threatens Russia’s Vast Spending on Ukraine War (NYT)

• Bay Area bridge will be first in Calif. to remove toll booth plaza (SFGate)

• Worse then Signalgate (Atlantic)

• RFK Jr. says HHS will determine the cause of autism by September (AP)

• Corporation Proud Of Origins As Small Business That Would Never Survive In Modern Economy (The Onion)

 

The Whimsical One

People the world over have witnessed the effects of Trump’s governing by “whim” or “instinct” this week. He’s definitely succeeded in giving instinct a bad name. 

As the dust settles a bit on his one-man global trade war, it turns out that he may not be mad at everybody — it’s China that’s the main focus of his wrath.

So now it seems we are to skip right to the championship round of the world cup of trade wars. It’s US v. China.

While I’m unsure which country will come out on top, I’m pretty sure who will lose: Everybody.

These crazy tariffs have disrupted the markets, destabilized the economy, disrupted supply lines, and unsettled almost everything else. Prices on many goods are certain to rise and whatever “deals” are eventually arrived at to mollify Trump’s ego, we all know they too could be upended at any point by his next whim.

Welcome to the Age of Whimsical Uncertainty.

HEADLINES: 

• This Is Why Dictatorships Fail (Atlantic)

• U.S. Market Tumbles; Trump Says China Tariff Is at Least 145% (NYT)

• The 18 hours that changed Trump’s mind on trade (WP)

• Trump's abrupt reversal Wednesday on the aggressive global tariffs he announced a week ago left critics shaking their heads. "Trump has created a situation where the whole world is against us, and everyone is furious at America," this prominent Democrat said. [HuffPost]

• Trump Isn’t the Only One with Leverage in the Trade War. What Moves Beijing Has Left. (Barron’s)

• Trump doesn’t rule out extending 90-day tariff pause (CNBC)

• EU suspends retaliatory 25% tariffs on US goods after Trump U-turn (Guardian)

• Trump's tariff pause leaves CEOs puzzled about what happens in 90 days (Reuters)

• U.S. and China Headed for ‘Monumental’ Split, Putting World Economy on Edge (NYT)

• US-China rivalry over Panama Canal sparks tensions, leaving Panama caught in war of words (CNN)

• Chinese companies that sell products on Amazon are preparing to increase prices for the United States or quit that market due to the duty hikes, sellers and the head of China's largest e-commerce association said. (Reuters)

• A Treasury market meltdown postmortem (Financial Times)

• Social Security abandons DOGE-led phone service cuts amid chaos, backlash (WP)

• Universities in Nazi Germany and the Soviet Union thought giving in to government demands would save their independence (The Conversation)

• House adopts budget blueprint for Trump's agenda after GOP leaders sway holdouts (NBC)

• MAHA Turns on RFK Jr. Over Measles Vaccine Stance (WSJ)

• Trump Threatens Climate Policies in the States (NYT)

• Trump: Israel would be ‘leader’ of Iran strike if Tehran doesn’t give up nuclear weapons program (AP)

• The plans to put data centres in orbit and on the Moon (BBC)

• Scientists are X-raying the Amazon to discover a lost human history. (WP)

• Mira Murati’s AI startup gains prominent ex-OpenAI advisers (TechCrunch)

• Elon Musk’s xAI powering its facility in Memphis with ‘illegal’ generators (Guardian)

• How AGI Made the Future Unthinkable (New York)

• A nonprofit is using AI agents to raise money for charity (TechCrunch)

• Trump Boasts About Strong-Arming Trump Into Pausing Tariffs (The Onion)

All Other Things

 For one semester at the University of Michigan I was an Econ major, but I got hung up on the Latin phrase meaning "all other things being equal," which kept showing up in every economic model we studied.

When I (somewhat rebelliously) wrote a paper arguing that in real life all other things never stay equal, my professor was not amused and gave me a D. That was the end of my would-be career as an economist.

I understood, of course, the concept of modeling and the need to control for random factors that could affect the outcome, since I’d also been a math major for a minute. But similar concerns about reality’s messiness compared to math’s formulaic purity derailed my academic trajectory in that subject as well. Quod Erat Demonstrandum if you will.

In the end, I found that I was better suited to working with words, so it was journalism for me, which of course is completely obsessed with the real world and all of its messiness. But the two subjects that came up over and over again in my journalism career were economics and math.

Both are necessary today when trying to understand what is happening with Trump’s chaotic economic measures. Now I’m neither a mathematician nor an economist but I can tell you that his math is flawed and his faith in tariffs is naive.

Finally, all other things are most definitely not equal in the global economy. I may have gotten a D in Econ but Trump gets an F.

HEADLINES:

• Dow surges 2,600 points for biggest rally in 5 years after Trump pauses some tariffs (CNBC)

• Inside Trump’s tariff retreat: How fears of a bond market catastrophe convinced Trump to hit the pause button (CNN)

• Why Trump Backed Down on Tariffs (New Yorker)

• Trump announces pause in ‘reciprocal’ tariffs for all countries but China (WP)

• China Has Readied a Trade-War Arsenal That Takes Aim at U.S. Companies (WSJ)

• 'The Economist' editor unpacks the 'biggest trade policy shock' of Trump's tariffs (NPR)

• Longtime Democratic strategist James Carville spotted how Trump could "try anything" while the U.S. is "in the midst of a collapse." [HuffPost]

• Hegseth spurs fiery response from Beijing over Panama Canal ‘threat’ comments (CNN)

• EU takes revenge on Trump’s tariffs as countries approve €20B+ retaliation (Politico)

• President, aides stress desire to cut deals amid turmoil (WP)

• hat’s So Screwy About the Trump Tariffs (Atlantic)

• In Trump Cases, Supreme Court Retreats From Confrontation (NYT)

• One of the U.S. Supreme Court's latest decisions is a warning that constitutional rights may be scant protection against being disappeared into a foreign prison. [HuffPost]

• U.S. judges in Texas, New York block DOJ from removing plaintiffs in Alien Enemies Act deportation case (CBS)

• With secret moves against international students, feds spread fear (WP)

• The Trump administration could try removing American citizens if it identifies a pathway it can claim to be legal, White House press secretary Karoline Leavitt said. [HuffPost]

• Exclusive: Kash Patel removed as acting ATF director, replaced by Army Secretary, sources say (Reuters)

• Texas' measles outbreak isn't slowing down. How can that change? (NPR)

• Americans Are Preparing for When All Hell Breaks Loose (NYT)

• Beijing rejects Ukraine’s claim significant numbers of Chinese troops are fighting alongside Russia (AP)

• Google launches new Ironwood chip to speed AI applications (Reuters)

• Some people think AI writing has a tell — the em dash. Writers disagree. (WP)

• Never-Before-Heard Buzzword Flying Around Office Can’t Be Good (The Onion)

VIDEO: 

Bob Dylan and The Band - Forever Young & Baby, Let Me Follow You Down

Knowing Not

When it comes to investments in the stock market, one thing I’ve learned about downturns is not to look. 

Don’t ask, don’t know.

Most of the money that has pulled out over Trump’s insane trade war has no place else to go and will therefore come back once the situation settles. So it would be a rookie mistake to pull your remaining funds out now, when they are at or near the lowest point they’re going to hit.

For the super-wealthy, therefore, this is the time to buy. The stocks of good companies have hit bargain levels. This is when fortunes are made by those who already have one.

As for me, as a little person, I’m just fine with not looking and not knowing.

Wake me when it’s over.

HEADLINES:

• Trump must reinstate Associated Press to White House press pool, judge rules (Politico)

• Did fictional character Ron Vara ‘craft’ Trump’s tariff policies? (France24)

• ‘Truly a moron’: Elon Musk escalates spat with Trump adviser Peter Navarro over tariffs (CNN)

• IRS acting commissioner is resigning over deal to send immigrants' tax data to ICE, sources say (NBC)

• New Social Security rules will create hurdles for millions of seniors, report finds (NPR)

• Supreme Court blocks order requiring Trump administration to reinstate thousands of federal workers (AP)

• Supreme Court allows Trump to terminate 16,000 probationary federal workers (ABC)

• Musk made direct appeals to Trump to reverse sweeping tariffs (WP)

• What would a US-China trade war do to the world economy? (BBC)

• China vows to ‘fight to the end’ against latest Trump tariff threat (Guardian)

• Trump Won’t Back Down. The Economic Pain Hasn’t Even Started Yet. (Barron’s)

• Cracks appear among Trump’s cheerleaders amid market turmoil (WP)

• CEOs Break Silence on Trump Trade War (WSJ)

• Billionaires Seek to Take Companies Private as Market Melts (Bloomberg)

• Vance’s whopper on alleged Social Security fraud (WP)

• Trump administration fires senior Navy female officer at NATO. She appeared on a ‘woke’ list (AP)

• Mexico would reject unilateral US military action, after drone strike report (Reuters)

• ‘No guidance and no leadership’: chaos and confusion at CDC after mass firings (Guardian)

• Measles cases in Texas outbreak surpass 500, with 24 new infections confirmed over last 5 days (ABC)

• Robert F. Kennedy Jr. said he plans to tell the Centers for Disease Control and Prevention to stop recommending fluoridation in communities nationwide. [AP]

• Israeli forces bombed a tent full of Palestinian media workers in Gaza, burning some of them alive — just days after a new report concluded that more journalists have been killed in the territory’s crisis than in most other major wars combined. [HuffPost]

• They want America to have more babies. Is this their moment? (NPR)

• Scientists genetically engineer wolves with white hair and muscular jaws like the extinct dire wolf (AP)

• Meta got caught gaming AI benchmarks (Verge)

• Exclusive: Musk's DOGE using AI to snoop on U.S. federal workers, sources say (Reuters)

• Meta’s surprise Llama 4 drop exposes the gap between AI ambition and reality (ArsTechnica)

• Two Democratic US senators demanded information from Microsoft and Google about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry. (Reuters)

• Man Who Bumped Tesla While Parallel Parking Sentenced To Death (The Onion)

The "Martinez"

As editor of the city magazine 7x7 that launched in 2001, I commissioned lots of stories on local history.

One of those was the origin of the martini, perhaps America's favorite cocktail. As near we were able to determine, a gold miner who had struck it rich headed to San Francisco when he stopped at a bar in Martinez, where the bartender served the drink.

The miner loved it, called it the Martinez, and headed for the Barbary Coast, then the most raucous part of a raucous town. He described the drink to a bartender there, where the modern name apparently emerged.

In the startup business we would call that a founding myth, and this one is generally accepted as true.

After all, history belongs to whoever is paying for the next round.

We published all sorts of fascinating tidbits during my brief tenure at 7x7, which was named for the 49 square-mile footprint of San Francisco. The 49ers refer to the gold miners, the football team and a 49-mile scenic drive for tourists.

As it turned out, free martinis were one of the main benefits of editing 7x7, though not for a celebratory reason. We launched the magazine one week before the 9/11 terrorist attacks. As the tourist trade here collapsed, we struggled to publish, deferring our salaries and accepting "trade' instead of cash from advertisers.

That trade basically meant all the free food and drink we could have wanted in San Francisco's best restaurants and bars -- night after night. As we navigated our way through this debauchery, it often felt as if the Barbary Coast was alive and well once again, at least for our merry band of staffers.

Despite the odd circumstances, I worked with a great group of editors, writers and designers, and it was a good chance to learn the city's rich history first-hand. Among the people I met was a young city council member named Gavin Newsom.

A week or so after our meeting, I received a hand-written thank you note from Newsom. Alas, soon after that, I had to leave 7x7 in order to earn an actual paycheck again.

HEADLINES: 

• US top court allows Trump to use wartime law for deportations (BBC)

• The Supreme Court’s New 5–4 Bailout for Trump Couldn’t Be More Ominous (Slate)

• Donald Trump has embraced sweeping arbitrary executive power in a manner not previously seen in American history. He is circumventing Congress, ignoring the courts and using the power of the state to crush any opposition to his agenda. This is a turn away from liberal democracy and toward autocracy. [HuffPost] 

• Trump warned foreign governments they would have to pay "a lot of money" to lift sweeping tariffs, characterizing the duties as "medicine" and triggering further carnage across global financial markets. China called the tariffs 'bullying' and urged others to continue with consultation. (Reuters)

• Hands Off! demonstrations were organized for more than 1,200 locations in all 50 states by more than 150 groups, including civil rights organizations, labor unions, LGBTQ+ advocates, veterans and election activists. The rallies appeared peaceful, with no immediate reports of arrests. [AP]

• Trump threatens additional 50 percent tariffs on China as markets slump (WP)

• The Trump White House Cited My Research to Justify Tariffs. They Got It All Wrong. (NYT)

• Asian markets fall sharply as Trump’s tariffs spark recession fears (WP)

• Ex-official says he was forced out of FDA after trying to protect vaccine safety data from RFK Jr. (AP)

• I Should Have Seen This Coming (Atlantic/David Brooks)

• 'A critical crossroads': Business leaders speak out against Trump's trade war with the world (NBC)

• Trump administration asks Supreme Court to block order to return deported Maryland father (USA Today)

• U.S. appeals court won't block order requiring return of man wrongly deported to El Salvador (Reuters)

• Are There Trump Internment Camps for Political Opponents in America’s Future? (Daily Kos)

• Social Security website keeps crashing, as DOGE demands cuts to IT staff (WP)

• Netanyahu is set to meet Trump to discuss Israeli hostages in Gaza and U.S. tariffs (NPR)

• Speaking alongside Netanyahu, Trump says U.S. is engaged in ‘direct talks’ with Iran (WP)

• Israel military razed Gaza perimeter land to create ‘kill zone’, soldiers say (Guardian)

• NIH scientists have a cancer breakthrough. Layoffs are delaying it. (WP)

• Trump Is Loomering His Own Administration (The Nation)

• AI is coming to skin cancer detection (WP)

• Aaron Rodgers Fuming That NFL Hasn’t Added Expansion Team To Sign Him (The Onion)

MUSIC VIDEO:

Merle Haggard & Willie Nelson "Okie from Muskogee" 

Blueprint for Tyranny

I’m starting out the week by excerpting a remarkable post from the Alt National Park Service, which has emerged as one of the centers of the resistance movement against Donald Trump’s authoritarian administration. Even if you just scan it, you’ll get a sense of the scope of Trump’s naked grab for absolute power. Alt-NPS is also reporting that the Trump regime has started “dismantling Freedom of Information Act (FOIA) offices.”

***

From Alt-NPS: We know this post is long, but it’s important to read to understand what’s going on. A lot of people are asking, “Why is Trump just out golfing while things are falling apart?” It’s simple: the emergency isn’t something he’s reacting to — it’s something he’s building.

Trump recently declared a national economic emergency under the International Emergency Economic Powers Act (IEEPA) — granting himself sweeping authority over international trade by labeling foreign economic practices an “unusual and extraordinary threat.”

But here’s the real play: by declaring a national emergency, Trump didn’t just respond to a crisis — he created one. And in doing so, he unlocked access to over 120 statutory powers scattered throughout federal law. Many of these powers have nothing to do with trade — and everything to do with expanding presidential authority inside the U.S.

What This Move Enables: Expanded Domestic Powers

1. Control of Domestic Communications

- 47 U.S.C. §606(c): Allows the president to take control of, shut down, or regulate wire and radio communications — including the internet, social media platforms, broadcast networks, and telecom infrastructure — in the name of national defense. Originally intended for wartime, this Cold War-era law remains on the books.

2. Asset Freezing and Financial Surveillance

- Under IEEPA and related laws, the president can freeze the assets and bank accounts of individuals or organizations accused of aiding foreign threats. These powers are vague and can be stretched to include domestic political groups, journalists, or activists — especially if they’re perceived as having foreign ties or influence.

3. Domestic Military Deployment

- Under the Insurrection Act (10 U.S.C. §§ 251–255), the president can deploy active-duty U.S. military to enforce laws or suppress civil unrest within the country. In certain scenarios, this can be done without state governor consent — especially if the president claims state authorities are failing to uphold federal law.

4. Emergency Detention Powers (Non-Citizens)

- The Alien Enemies Act (50 U.S.C. §21) — a law dating back to 1798 — allows the president to detain or restrict the movement of non-citizens from nations deemed hostile. The criteria for “hostile” can be broad and undefined during a declared emergency.

5. Control of Energy and Transportation

- Under laws like 42 U.S.C. §6272 and others, the president can redirect or restrict domestic fuel production, electricity usage, or energy transportation. Additionally, 49 U.S.C. §40106(b) allows the president to limit, reroute, or suspend civil aviation, giving the executive branch near-total control over U.S. airspace in a crisis.

6. Suspension of Labor Regulations

- During a declared emergency, the president can waive federal labor regulations and override contract protections. This includes removing limits on hours, wages, and workplace safety for federal contractors and any industries deemed vital to national security.

7. National Security Letters & Warrantless Surveillance

- Emergency declarations expand the reach and use of National Security Letters (NSLs) — tools that let federal agencies demand financial, telecom, and internet records without a warrant. These also come with gag orders, preventing the recipient (e.g., Google or a bank) from disclosing that they’re under surveillance.

Why it Matters?

Even when legal domestic powers are limited, a national emergency lets the president:

- Frame the issue as a national security crisis, justifying aggressive action

- Bypass Congress and the courts by acting unilaterally

- Sway public opinion using fear, urgency, and patriotic rhetoric

Bottom Line

IEEPA is focused on foreign threats — but once the emergency is declared, the president taps into a hidden arsenal of domestic control powers. What began as a trade issue could quickly shift into civil liberties restrictions, mass surveillance, or even crackdowns under the legal shield of an “emergency.”

This isn’t just about tariffs. It’s about redefining the boundaries of executive power. Imagine if this economic crisis keeps getting worse — the amount of power he will gain.

***

Large numbers of of people came out to demonstrate this weekend in protest against what Trump is doing and what he plans to do. The next national day of protest is to be on April 19th. 

It's Started

HEADLINES:

• ”Hands Off!" protest in Boston draws nearly 100,000 people rallying against Trump, Musk (CBS)

• D.C. rally draws tens of thousands as Trump protests held across U.S. (WP)

• ‘Hands Off!’ protesters across US rally against President Donald Trump and Elon Musk (CNN)

• Obama calls on citizens, colleges and law firms to resist Trump agenda (WP)

• Economists take issue with Trump’s tariff formula, arguing rate is inflated (CNBC)

• Trump tariffs: Nowhere to hide (Reuters)

• China and US are at each other's throats on tariffs, and neither is backing down (BBC)

• U.S. abandons 80-year era of pursuing globalization (WP)

• Apple gets caught in a trade-war nightmare (Economist)

• What Trump’s tariffs mean for you (Business Insider)

• Laura Loomer Is a Warning (Atlantic)

• Firing of National Security Agency Chief Rattles Lawmakers (NYT)

• Deep cuts to HIV research could halt decades of progress, scientists say (WP)

• Axed Vaccine Chief Reveals RFK Jr.’s Crackpot ‘Data’ Demands (DailyBeast)

• Palestinian paramedic says he saw Israeli troops firing on emergency vehicles (Reuters)

• I was a British tourist trying to leave America. Then I was detained, shackled and sent to an immigration detention centre (Guardian)

• Israeli troops expand 'security zone' in northern Gaza (Reuters)

• Could an inexpensive vaccine help stave off dementia? (Vox)

• Ancient DNA pulls back curtain on the Sahara Desert’s greener past (CNN)

• ChatGPT Image Generation Is Now Free for Everyone (CNET)

• Google DeepMind 145-page paper predicts AGI could match human skills by 2030, and warns of existential threats ‘that permanently destroy humanity’ (Fortune) 

• Judge calls out OpenAI’s “straw man” argument in New York Times copyright suit (ArsTechnica) 

• Parents Gently Explain To Child That Their Money In Heaven Now (The Onion)