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Wednesday, April 09, 2008
Ways & Means Looks to End Private Tax Collection
The House Ways & Means Committee is expected ($) to markup legislation (H.R. 5719) today that would end the IRS's private tax collection initiative. Today's markup begins another attempt to put the kibosh on this wasteful program. Efforts to end the program have been stymied in the past by Senate opposition and House parliamentary rules. The latest effort to end the program was initially inserted in the FY 2008 Financial Services appropriations bill in the House but was stripped out prior to including the bills language in the FY 2008 omnibus spending measure.
The truncation of the program would be welcome development for advocates of fiscal responsibility and good governance. National Taxpayer Advocate Nina Olso recently testified that the IRS's continued operation of the program ultimately deprives the Treasury of some $91 million per year. And although tax collection is an inherently governmental function, citizens are not privy to the methods that these firms employ, while the collection agencies are not accountable to elected officials.
Committee member Rep. Tom Reynolds (R-NY) strongly objects to Rangel's bill despite his support for other provisions in the measure. Reynolds was the author the original legislation that initiated the program, and his rabid support for the program may be explained by the $16,600 in campaign contributions he has received from one of the two firms (Pioneer Credit Recovery) which contracts with the IRS in the private debt collection program.
Posted by Craig Jennings
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