As concerns mount over the recent proposal to turn over delinquent tax accounts to private debt collectors, Ways and Means Oversight Subcommittee Ranking Member John Lewis (D-GA), Ways and Means Committee Ranking Member Sander Levin (D-MI), and Budget Committee Ranking Member Chris Van Hollen (D-MD) have issued the following statement:
It is misguided and harmful to taxpayers to use private debt collectors to collect outstanding tax liabilities. When the IRS most recently used private debt collectors in 2006, the program actually lost money. After hearing numerous complaints from a wide variety of taxpayers, many of whom were subjected to harassment and other inappropriate collection techniques, this costly program was terminated. We agree that it is vitally important that we fully finance a robust investment in our nation’s infrastructure. However, we should not pay for that investment by subjecting our taxpayers to these abusive practices. This provision must be removed.
But be careful: just because the latest concerns were voiced from top-ranking Democratic members of the Ways & Means and Budget Committees, don’t be fooled into believing this is a partisan issue. Last year, Sen. Charles E. Schumer (D-NY) was the driver in a similar provision requiring IRS to turn over delinquent tax accounts to private debt collectors; that provision was wedged into the 82-page Tax Extenders Bill (the Extenders Bill eventually passed without the provision).
The Highway Trust Fund Bill (HR 22), as introduced earlier this year, was originally titled the Hire More Heroes Act – and I’m not kidding – was “An Act to amend the Internal Revenue Code of 1986 to exempt employees with health coverage under TRICARE or the Veterans Administration from being taken into account for purposes of determining the employers to which the employer mandate applies under the Patient Protection and Affordable Care Act.” Now, the act, according to the text of the bill may be called “Developing a Reliable and Innovative Vision for the Economy Act” or the “DRIVE Act.” You can read the text of the bill here.
Yesterday, a flurry of amendments to tweak the bill were considered. You can view the roll call summaries here.
Discussion on the bill and related provisions will resume today.
