0 porn. the agents reported those cards stolen. >> three prizes including plush animals and stove top hats. kazoos and thomas the tank engine rubber wristbands. this is for adults mind you. the irs failed to cancel 378 credit cards in cases where employees had left the irs. >> republicans, democrats, independences, should be very worried about an agency that powerful in government looking after your political leaks. >> who cares whether they're right or left. the fact that they're targeting people should be cause enough alone for outrage. >> not enough people are saying this is not acceptable. we need to find out what went wrong and why. >> i'm afraid right now, our country doesn't trust us as leaders to govern it. >> your tax dollars at work. >> if you thought line dancing was a waste of your tax dollars, brace yourself. just released irs inspector general report showing irs agency credit cards were used to make unthinkable credit card purchases. wine, pornography and more. this is unbelievable. >> it's unbelievable and it's unsettling on a whole lot of levels. there's the targeting, the lying, and now there's the spending on absurdity with just impunity. i have a prediction, greta. history is measured by tipping points. and i think this is going to be a tipping point in how the relationship is between the governed and those who govern us. this is a huge event. and it's consequences are going to be far and wide. >> the numbers here that they used, agency credit cards to buy wine for an expensive luncheon. 28 bottles, one of my favorite purchases by the irs that we paid for, diet pills. what are they, a bunch of -- maybe if we ever buy them these big lunches with big wine you can get diet pills. why are we paying for that, and even baby clothes. >> it goes on and on and on. that's what we're seeing, not just one episode of this kind of behavior, it's always in a larger context. it's a culture of abuse now, abuse of resources that were entrusted to them, and abuse of power as it relates to us. >> i think you're kinder. you say it's a culture, i think this is a crime. i think when you take someone else's money for which you have no authority to do so and you use it, it's called stealing. and i don't care what, i cannot in my wildest dreams think if we brought any person in from the irs, is it okay to buy baby clothes on a credit card, on an agency credit card? that's not even a close question, or diet pills or 28 bottles of wine. this may seem like a small number. even like a $50 bottle of wine, that's a couple weeks of student lunches for some families. why are these people just stealing. are you going to refer this to the justice department to tell eric holder, open a criminal investigation and let's stop looking the other way? >> without question, the work that the ways and means committee has done, the work that the oversight committee has done is why we're able to have this discussion. it's pressure from capitol hill that's driving this, now with the inspector general's report, and other types of inquiries an coming to a head. i think it's ins this larger context of just an abuse of power, and a manipulation. if you think about people. think about the sort of pathetic joke that this is. they're taking resources, abusing resources, and these same people are deciding who gets to participate in the public square, and to debate these things. >> in some instances, they say that some of the credit card concerned. >> they're asserting they've done nothing wrong legally. our report endeavors to lay out the facts. it's one of those -- we'll give you the facts, you decide. it seems like it's not the intent of congress. it's not the intent of the american people. >> what is it -- is it roseman awarded these contracts? probably the biggest contracts to someone who he's friends with? that's a suggestion of the report? >> a friend of now ten years. he appears to have coaxed and helped them through the process. there's a sequence of events that we lay out in our report. one of them is, here's an individual who has a small accident apparently while playing ball, at the prep school. this is not even the army academy, but this is a prep school he attended for a few months, and 27 years later, after playing college football he -- a few months before buying this company and claiming to be a service connected disabled veteran, he comes in and says yes i have pain in my ankle, gets a 30% disability. then moves his company that he bought for a few dollars, really. it was $200,000 in business. he moves it into what had formerly been called a hub zone. this is a historically underutilized zone, it's a zone in washington, d.c., that actually is no longer. it's by the verizon center, it's no longer underappreciated. >> it's just an office. >> his real business is out in leesburg, virginia. he gets what is effectively a set of preferences to go from a company that's never done more than $250,000 in a year to having $43 million of actual booked income in the first year, and $500 million in contracts as we sit. >> is gregory roseman the one who gives the sign off on all these contracts? >> not completely. roseman signed off on some, but appears to have advocated in a strong and inappropriate way for a multitude of them. what we're trying to look at is irs? is it time for the irs to be abolished and start over? yes or no. and now to benghazi, the house oversight committee issuing subpoenas to four state department officials. why does the panel find it necessary to compel the officials to testify? congressman jason chaffetz joins us. >> i'm glad to come on your show and say we issued subpoenas. unfortunately secretary kerry was given an opportunity. we saw it with his per view of having been a senator for so long. he would be more friendly, more conducive to providing witnesses, and the role of congress, no, not the case. we had invited since april, we named 13 people. chairman issa did. we've been able to interview one person with no help of the state department. and finally we said, these four, we're going to have to compel them to come here. >> i have a letter dated june 24th from the committee in which it said -- i've submitted multiple requests to interview former and current state department officials. are they just ignoring you? >> we've been given the stiff arm for the last 10 plus months, every time the state department spokesperson stands up and says, well, we're being -- we're, woulding with congress, that's not true. as somebody who's on the committee. >> is it a lie? >> yes, it's a lie. it would be fiction, deceptive and a lie to say that they are working with the congress to provide us the information that we need to conduct our interviews and information. >> what about the survivors, the people you've subpoenaed now are not survivors, what about the people that are on the ground who are there with firsthand knowledge. have you gotten those names? >> we're going to take this one step at a time, we have the base of people at the state department. we named 13 that we need to speak with. we nied to speak with people in the department of defense. that's going to happen this week. i want to have open hearings. >> do you have the names of these other survivors? >> i don't necessarily know where they are, we know who these people are, and at some point the united states congress and the american people deserve, especially the families, the loved ones were killed deserve to hear from those people who were on the ground who have firsthand knowledge of what happened in benghazi. >> here's my tipton the. in order to get the information where these people are, you served a issubpoena duces tecum. asked for files of every person on the ground. you'll get their phone numbers, addresses, everything. that's the way to get that? >> trey gauti no doubt could decipher what you just said. the state department has proven they will not work with the united states congress. >> why is there so much resistance on this? >> i guess you could say it's a guilty conscience or whatever, there must be some people over there that want to get the monkey off their back. to do that, they provide the information you're asking. get the people that were there and let them tell what happened and what didn't happen? >> there are some good people on the list of 13 who want to speak with the congress, but for an administration who's putting a lot of pressure on them not to do it, we haven't had secretary kerry encourage and ask people to come testify before congress. it's just, they have not had a desire to work with congress. >> well, the problem -- >> they've done nothing over the last ten months to demonstrate that. >> the inquiry is politically motivated. you have been asking since september to get to the bottom. if that had been provided i would assume we'd be beyond it by now. >> we have hundreds of embassies and consulates, we haven't gotten the truth. >> we haven't caught the culprit. >> this is four members. if it happened in georgetown, we would have more d.c. police on it than these four americans overseas. congressman, nice to see you. straight ahead, more bad news for obama care, it's not coming from the republicans this time, the news is coming straight from the obama administration. you're going to want to hear this, the latest is next. you have to admit this is a really strange dual. is senator rand paul teaming up with nick jagger? that answer coming up. kris jenner stops back to visit the ladies. what happened next has everyone talking. 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