Tax Act Would End IRS's Private Debt Collection Program After fending off an effort to attach an immigration provision, the House passed HR 5719 by a vote of 238-179. The bill would end the IRS's private debt collection (PDC) program if signed into law. It was this provision and a proposed change to the rules of health savings accounts (HSAs) that drew vocal opposition from Republicans. While the fortunes of the bill in the Senate are uncertain -- Sen. Charles Grassley (R-IA) is a staunch supporter of the PDC initiative -- The House vote indicates an override of a veto is unlikely.

OMB Watch has signed on to a National Treasury Employees Union letter that calls on Representatives to support H.R. 5719, the "Taxpayer Assistance and Simplification Act of 20080." The bill would, among other things, end the private debt collection program, which is not only fiscally irresponsible, but puts sensitive taxpayer data at risk and opens citizens to abusive collection practices. If you would like to sign on to the letter, email Matt Socknat at NTEU - (email address appears as an image and is un-clickable to prevent spam)

The House Ways & Means Committee is expected ($) to markup legislation (H.R. 5719) today that would end the IRS's private tax collection initiative. Today's markup begins another attempt to put the kibosh on this wasteful program. Efforts to end the program have been stymied in the past by Senate opposition and House parliamentary rules. The latest effort to end the program was initially inserted in the FY 2008 Financial Services appropriations bill in the House but was stripped out prior to including the bills language in the FY 2008 omnibus spending measure.

That's the objection coming from House Republicans to Rep. Carolyn Maloney's (D-NY) contracting bill (HR 3033) that would debar federal contractors if they are found to have violated federal contracting rules or laws. "Right now, there is nothing stopping a fraudulent contractor from bouncing from federal agency to federal agency, fleecing U.S. taxpayers the whole way," Maloney said. "Congress can and should do more to fortify the federal procurement system, and show the door to contractors lining their pockets at the expense of hardworking taxpayers."