Krugman on the IRS turning over tax collection to collections agencies

[swag]

Paul Krugman at Times Select (sub. req.)

More generously excerpted at

Economist's View

August 21, 2006

Tax Farmers, Mercenaries and Viceroys

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.

In the bad old days, government was a haphazard affair. There was no bureaucracy to collect taxes, so the king subcontracted the job to private “tax farmers,” who often engaged in extortion. There was no regular army, so the king hired mercenaries, who tended to wander off and pillage the nearest village. There was no regular system of administration, so the king assigned the task to favored courtiers, who tended to be corrupt, incompetent or both.

Modern governments solved these problems by creating a professional revenue department to collect taxes, a professional officer corps to enforce military discipline, and a professional civil service. But President Bush apparently doesn’t like these innovations, preferring to govern as if he were King Louis XII.

. . .more

[MadMaddie]

1. So now there will be debt collectors who will threaten Americans

because they are behind on their taxes....

When the rich get tax cuts and get to have loopholes so they can offshore their money....

When the hell are the American people going to get angry....when are the American people going to take to the street....?

[Telly Savalas]

2. If they're going to privatize everything, start with the presidency.

I'll start a consulting firm to handle the job. We could clear brush and piss people off much more efficiently and at a lower cost than it's being done now.

[dorktv]

3. Not only that but it will cost more money too. *mutters*

[Skarbrowe]

4. Are you ready to get your legs broke? nt

[BootinUp]

5. nice work.

[Nothing Without Hope]

6. Here are some 2006 links in my bookmark file on IRS abuse by the Bushies:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x66053
1-6-06 - IRS Tracked Taxpayers Political Affiliation

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2029357
1-8-06 - IRS Said to Improperly Restrict Access (Bush

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=66053&mesg_id=81546
1-8-06 DU post - Bill allows IRS to contract out debt collection, and shady companies involved

http://www.crooksandliars.com/2006/01/11.html#a6670
1-11-06 IRS freezes refunds of low-income taxpayers without telling them

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x185020
1-13-06 NUMBERS for US corporate salaries, numbers, CEOs, who pays taxes} - Predictions of an Economic Hit Man

http://www.commondreams.org/views06/0114-24.htm
1-14-06 Molly Ivins} Now IRS is Harassing the Poor

http://www.nytimes.com/2006/01/17/opinion/17tue4.html?th&emc=th
1-17-06 IRS refusing to supply data on audits} What Is the I.R.S. Trying to Hide? - New York Times

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x483584
2-21-06 Attn DUers personal info posted here will be used against you

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2159881#2161116
3-11-06 Blackwell Met With Ministers More Often Than IRS Complaint Alleged

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x229818
8-19-06 Who is doing the IRS's private debt collection and what it means.

Does anyone here doubt that the plan is to harrass and persecute political dissidents while enriching rich cronies?

[Nothing Without Hope]

7. Watch for a FREE LINK to appear at this web site:

http://64.226.238.78/PA/index.shtml

Note the "Paul Krugman" tab on the left side of the home page. This article isn't up yet, but keep checking - I think it will be appearing there.

[1932]

8. It really is a thermometer for the failure of democracy.

They want to privatize this stuff so the corporations that will profit will give money to Republicans. A fully informed public would NEVER approve of this waste of public money. But with all the coporations and the corporate media on Bush's side, you can be the public will not be fully informed.

[elehhhhna]

9. Imagine what they can threaten you with if they say they're the IRS.

The potential for abuse is wide and deep.

[cyberpj]

10. Layoffs at IRS will Halve Audits of Wealthy Estates

Published on Monday, July 24, 2006 by the International Herald Tribune
Layoffs at IRS will Halve Audits of Wealthy Estates
by David Cay Johnston

NEW YORK - The U.S. government is moving to eliminate the jobs of nearly half of the lawyers at the Internal Revenue Service who audit the tax returns of some of the wealthiest Americans, specifically those who are subject to gift and estate taxes when they transfer parts of their fortunes to their children and others.

The administration plans to cut the jobs of 157 of the agency's 345 estate tax lawyers, plus 17 support personnel, in fewer than 70 days.

Kevin Brown, an IRS deputy commissioner, confirmed the cuts after The New York Times was given internal documents by people inside the IRS who oppose the action.

The Bush administration has successfully lobbied Congress to enact measures that reduce the number of Americans who are subject to the estate tax - which opponents refer to as the "death tax" - but has failed in its efforts to eliminate the tax entirely.

http://www.commondreams.org/headlines06/0724-09.htm