Democrats push to end private tax collections [View All]

[IChing]

Source: Reuters

WASHINGTON (Reuters) - A U.S. House of Representatives panel on Wednesday moved to end a treasured Republican program that allows private debt collectors to pursue tax debts owed to the U.S. government.

The House Ways and Means Committee, on a mostly party line vote of 23-18, approved a bill ending the program enacted in 2004 by the then Republican-led Congress.

Democrats, who now control Congress, and unions opposed the program, saying it was a costly way to collect tax debts that could more efficiently be collected by IRS employees.

"The collection of taxes is a core government function," said Rep. John Lewis, a Georgia Democrat. "It is the Internal Revenue Service's mission. We found that, in addition to taxpayer harassment, this program wastes tax dollars by paying a bounty up to 24 percent to the debt collectors."

Read more: http://www.reuters.com/article/newsOne/idUSN1835007220070718