TOPICS
TOPICS
House panel votes to bar outsourcing of tax debt collections
Bills to repeal the Internal Revenue Services' authority to use private collection agencies to collect delinquent taxes and crack down on identify theft involving Social Security numbers were approved Wednesday by the House Ways and Means Committee.
The more controversial bill was the private tax collection measure, which passed 23-18 over Republican objections.
Democrats argued the bill was needed to get private collection agencies out of the business of dunning taxpayers, arguing that there have been many documented abuses by the private agencies, such as calling taxpayers more than 100 times in pursuit of a debt. They also said the IRS, given the proper resources, could do a better job.
But Republicans argued that the private firms have done a good job of going after delinquent taxpayers, and that by giving easier cases to private firms, IRS employees were freed up to go after the harder ones. Numerous Republican amendments were batted away by Democrats. House Ways and Means Chairman Charles Rangel, D-N.Y., said many of those GOP amendments would be considered in upcoming comprehensive tax legislation.
Approval of the Social Security number bill came on a 41-0 vote. The bill would make it harder to buy, sell or display Social Security numbers. Ways and Means Social Security ranking member Sam Johnson, R-Texas, said the Social Security number is widely used as a personal identification number and that 10 million people in the United States have reportedly been victims of identity theft using them.
"It is long past time for Congress to act," he said. House Ways and Means Social Security Subcommittee Chairman Michael McNulty, D-N.Y., said, "If we are serious about addressing this growing problem, we must stop giving access to our Social Security number to every Tom, Dick, or Harry who seeks it."
The bill would restrict the sale, purchase and public display of the SSN by government and business, to make it less accessible to identity thieves, while providing exceptions for legitimate and necessary uses of the number such as for tax returns and national security uses. The bill provides penalties of up to five years in prison or a $250,000 fine.
COMMENTS
- What could be more 'inherently governmental' than Federal Taxes? If Uncle Sam mandates that we pay them, then we should demand that HE protects them. Our federal obligations (which are not the same as personal choices) should never be farmed out to a private firm to profit from, BIG time. And you know it must be lucrative, for a private firm to even bother with it. It's not right. katie Posted July 19, 2007 4:01 PM
- I so agree with Joann. But the question - why did Congress think it would work this time? - raises something we all need to look at. Every single decision by this administration, every piece of proposed legislation or policy (that they would tell us about) serves to put more money into the hands of BIG BUSINESS. Not small ones, independent ones, entrepreneurs, etc, but BIG business, most especially BIG OIL. Look back, really analyze what's been happening - money used to be more present at more levels of society. Municipalities did not have to choose between providing a hot meal to a child in poverty OR providing some after school programs, there was enough to fund the real needs. But this has not been true since the current administration took over - their ultimate goals have very little to do with us down here earning a paycheck. Bev Posted July 19, 2007 2:50 PM
- Outsourcing the collection of delinquent federal taxes was just plain stupid. It was tried once before and failed. What made Congress think it would work this time? No entity outside of those "who need to know" Social Security Numbers (jobs and banks) should have access to these numbers. That includes credit cards. Identity theft is "big business" today. It scares me because of the long-lasting problems it causes honest people. Jo Ann Posted July 19, 2007 8:53 AM
