But the IRS is viewed as a cost center in the federal budgetary process, not a revenue generator. Even though the customer service orientation of revenue collection agents will probably be gone once the private debt collectors start collecting, and providing the government with much less than they would be able to recover otherwise.
Also, I've seen some speculation about the elimination of income, estate, and other taxes, to be replaced by a flat 25% sales tax going to the federal government.
Would that work?
Oh, I realize this deals with 2 separate issues, maybe I'll split the topics up later on.
I.R.S. Enlists Help in Collecting Delinquent Taxes
Article
If you owe back taxes to the federal government, the next call asking you to pay may come not from an Internal Revenue Service officer, but from a private debt collector.
Within two weeks, the I.R.S. will turn over data on 12,500 taxpayers — each of whom owes $25,000 or less in back taxes — to three collection agencies. Larger debtors will continue to be pursued by I.R.S. officers.
The move, an initiative of the Bush administration, represents the first step in a broader plan to outsource the collection of smaller tax debts to private companies over time. Although I.R.S. officials acknowledge that this will be much more expensive than doing it internally, they say that Congress has forced their hand by refusing to let them hire more revenue officers, who could pull in a lot of easy-to-collect money.
The private debt collection program is expected to bring in $1.4 billion over 10 years, with the collection agencies keeping about $330 million of that, or 22 to 24 cents on the dollar.
By hiring more revenue officers, the I.R.S. could collect more than $9 billion each year and spend only $296 million — or about three cents on the dollar — to do so, Charles O. Rossotti, the computer systems entrepreneur who was commissioner from 1997 to 2002, told Congress four years ago.
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Comments: 13
Now I know what Mom is talking about when she talks of planting a Burning Bush in her garden. What a great idea!!
I don't know what all the happy-happy-joy-joy is about privatization (except that some rich guys in government can throw some cash to their rich friends outside of government), because it seems to be pretty much a dismal failure in terms of actual savings. I know that government bureaucracies are not noted for efficiency, but the solution to that is overhauling and modernizing the bureaucracy, not letting someone make a profit off of government work.
Disband the IRS as it exists, and remaove all these unique taxes (reminiscent of merry old England, which we created the USA to escape from).
Then, since the government DOES require a budget to operate on, instill a 10% SALES TAX. That would equalize the contributions made by EVERYONE within this country, including the illegals and tourists. There would be NO loophoes for the rich to sneak through, and it would also stop the government from being able to look at our incomes in order to set the econmy to their benefit.
For example, Gas prices going UP is a good thing for the government, because it ADDS to their pocket incrementally, and it's one of the highest tax surcharges we face everyday.
IF all Sales tax was 10%, they would not have that kind of control over us and our income.
A FLAT SALES tax on purchases of 10% would be more than sufficient for the government to run on, and WE would be controlling our income and expenses. If we are poor, then there is little purchasing going on, the government sees it is losing revenue, and it intercedes on our behalf in order to get us buying again...it's a win-win situation, and it also reduces the number if IRS expenses, along with the fact that WE are in control!
Remember, even Jesus only asked for a 10% tithe (donation) in the Bible, so how bad could that be compared to the percentage we pay out now?
Challenge me on this!
http://www.govtrack.us/congress/billtext.xpd?bill=h109-25
Representative Delay has left congress. So this bill appears not to be probable of success.
This would work. Not mention have a few positive reprocussions
1. NO MORE IRS- the IRS was created by the democrats as a government agency after income tax was invented. There is a law that says a government agency can't be dissoved untill the goal of the agency is complete. Well, income tax was introduced because of the times. It's not needed any more. Technically it should be dissolved because the reason that the IRS just dosent exist in ths day and age.
2. It would create a hugh market for used things. the 25% tax is only for new items. Yes you'll be paing that 25% on luxuary items and entertainment (dinning out, movie theaters, ect.) it would relieve a lot of the burden on the free market. It allows American people to keep the wealth they earn. We live under a capitalist system and it would make the american dream even more attainable.
The reason its been hard to get approved is the amount of votes to get the law changed, and the loss of power. the Democrats want large governent. Can we say Socialism?
But remember states also have sales tax, some like California have sales tax and income tax.
But any tax expert will tell you where the burden of sales tax falls, that is on the backs of the poor where it rightly belongs.
Of course the last 50 years of tax reform has been primarily an effort to ease the tax burden for the rich and increase it middle class and working people, very successfully.
It is quite amusing for all of you to sit there and propose this. Have any of you stopped to look at your purchases plus the 10 to 25% tax to be paid for say the last 5 years. Ok, now compare it to what you are paying in income tax.
As for the rich paying their share. You have forgotten that the rich are often "comped" nearly everything.
Do any of you know that it was once common to have a property tax on household furnishings. Do any states/counties still do this?
Anyone who votes for anything over 10% is missing the point!
We are already losing 25% of our income on the average!
Just look at your paycheck!
10% is MORE THAN ENOUGH for the government to operate on, they will just have to be more efficient on their use of funds!
Hey, maybe they will be more particular on who deserves 'welfare' and with the spare cash, rebuild the Social Security funds they have 'borrowed' from.
What currently exists is a government much like teenagers. You give them a Visa card, then they keep maxing it out and expecting YOU to pay the payments for them....get the idea?
I sure would like to vote for raises every year based on my desire to spend.....
Flat tax removes 99% of the loopholes....it has my vote at no higher than 10%, thank you