Tax Farmers, Mercenaries and Viceroys
Source: By PAUL KRUGMAN, New York Times (subscription req.), August 21, 2006
Yesterday The New York Times reported that the Internal Revenue Service would outsource collection of unpaid back taxes to private debt collectors, who would receive a share of the proceeds.
It’s an awful idea. Privatizing tax collection will cost far more than hiring additional I.R.S. agents, raise less revenue and pose obvious risks of abuse. But what’s really amazing is the extent to which this plan is a retreat from modern principles of government. I used to say that conservatives want to take us back to the 1920’s, but the Bush administration seemingly wants to go back to the 16th century.
And privatized tax collection is only part of the great march backward.
Related article:
I.R.S. Enlists Help in Collecting Delinquent Taxes
By DAVID CAY JOHNSTON
New York Times
August 20, 2006
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.