Drew Ferguson: “I rise in support of the Capito amendment to H.R. 5025. The attempt to significantly change the policy of Federal tax…”

“I rise in support of the Capito amendment to H.R. 5025. The attempt to significantly change the policy of Federal tax collections without serious discussion or debate among Members of Congress is extremely short-sighted. Federal tax collection is currently and should remain an inherently governmental function. Shifting the responsibility from the Federal Government to third-party entities has proven disastrous. The IRS attempted private tax collection in the past with dismal results. The 1996 pilot program for private collection was so unsuccessful it was cancelled after 12 months, despite the fact it was authorized and scheduled to operate for 2 years. A review by the IRS Office of Inspector General found that contractors participating in the pilot programs regularly violated the Fair Debt Collection Practices Act, did not adequately protect the security of personal taxpayer information, and even failed to bring in a net increase in revenue. In fact, the IRS had a net loss of $17 million for the failed pilot program. When privatizing tax collection was proposed in 1986 during the Reagan administration, then-Treasury Secretary James Baker opposed the concept.”