Providing for Consideration of H.R. 3056, Tax Collection Responsibility Act of 2007

Floor Speech

PROVIDING FOR CONSIDERATION OF H.R. 3056, TAX COLLECTION RESPONSIBILITY ACT OF 2007 -- (Extensions of Remarks - October 17, 2007)

SPEECH OF HON. PETER WELCH OF VERMONT IN THE HOUSE OF REPRESENTATIVES WEDNESDAY, OCTOBER 10, 2007

* Mr. WELCH of Vermont. Mr. Speaker, I want to thank the gentleman from New York, Mr. RANGEL, for his work in bringing H.R. 3056 to the House floor. I have received feedback from Vermont citizens and members of the National Treasury Employees Union (NTEU), both in Vermont and nationwide, strongly urging the repeal of the IRS authority to use private debt collectors. There has been much concern for this practice of using ``private bounty hunters.'' National NTEU employees expressed deep concern for outsourcing of inherently governmental jobs.

* In January, 2007, the National Taxpayer Advocate, who is appointed by the Treasury Secretary, sent a strong message to Congress urging repeal of this authority as a burden and cost to taxpayers. Taxpayers have faced overzealous intimidation and abuse by private collectors as well as the loss of privacy and confidential information. The Taxpayer Advocate reported to Congress that ``the money spent on the IRS Private Debt Collection initiative is an inefficient use of government dollars.'' The National Taxpayer Advocate Service has testified that IRS employees bring in $20 for every dollar IRS spends, whereas private debt collectors bring in only 4.

* This bill will reverse these inefficiencies and abuses on the American taxpayer.

* I have also heard from other Vermont organizations, including many Builders Associations and other federal, state, and local government contractors, voicing strong support for the delay in implementation of certain tax withholding provisions provided in this bill. H.R. 3056 postpones for one year, until December 31, 2011, the application of a three-percent withholding requirement on the payments of goods and services made by the U.S. Government, States, and local governments. This delay allows the Treasury Secretary the time to study issues associated with the three-percent withholding, including the burdens to small businesses as well as the application of the tax to small expenditures for goods and services by governments.

* I strongly urge my colleagues to support passage of this rule and the underlying bill.

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