[Congressional Record Volume 143, Number 144 (Thursday, October 23, 1997)]
[Extensions of Remarks]
[Pages E2067-E2068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  IS THE IRS A ROGUE AGENCY? FEDERAL EMPLOYEES ARE AGAIN THE SCAPEGOAT

                                 ______
                                 

                            HON. TOM LANTOS

                             of california

                    in the house of representatives

                       Thursday, October 23, 1997

  Mr. LANTOS. Mr. Speaker, recently we have heard horror stories from a 
Senate Finance Committee about Federal employees of the Internal 
Revenue Agency, the IRS. As these charges have echoed and reechoed 
across the political spectrum, there have been few voices willing to 
express a contrary point of view.
  I fear, Mr. Speaker, that we are again witnessing an effort to score 
political points by scapegoating Federal employees. While I do not 
condone wrongdoing by any Government employee, the recent charges have 
been blown completely out of proportion and have tainted all employees 
of the IRS. This is absolutely appalling.
  Mr. Speaker, in this atmosphere National Public Radio has again 
demonstrated that it is a national treasure, a vital information 
resource that provides critically needed alternate points of view. NPR 
is not just another ``me-too'' media outlet reflecting, but not 
thinking about, the so-called news.
  In an excellent commentary broadcast by NPR's ``All Things 
Considered'' on Tuesday, October 21, Jacob Weisberg, the chief 
political correspondent for Slate magazine, provided a much-needed 
alternate point of view. It puts the IRS bashing into perspective, and 
it emphasizes that Federal employees are a competent and dedicated 
group of Americans. Mr. Speaker, I ask that his commentary be placed

[[Page E2068]]

in the Record, and I urge my colleagues to give it serious and 
thoughtful attention.

       Robert Siegel, Host: Commentator Jacob Weisberg says IRS 
     bashing has become a popular new game on Capitol Hill and in 
     the news media. He says the accusations would not stand up to 
     an audit.
       Jacob Weisberg, Commentator: Republicans have an excellent 
     new enemy--the Internal Revenue Service. With Senate hearings 
     and a national barnstorming tour, party leaders have spent 
     the past several weeks vilifying the one government 
     bureaucracy they think has no friends.
       Democrats and the Clinton administration, sensing a 
     political hazard, have piled on with their own expressions of 
     outrage and called for reform.
       But is the IRS really a rogue agency? Consider what we've 
     learned in recent weeks. The Senate Finance Committee heard 
     testimony from four abused taxpayers. These four were culled 
     from some 1,500 who have contacted the committee. There's no 
     way of knowing how many of those have legitimate gripes.
       But even if all were genuine victims, it would not remotely 
     approach the kind of systematic sadism alleged by 
     Republicans. There are more than 200 million tax returns 
     filed each year, of which 2 million are audited. Fifteen 
     hundred abject failures would mean an error rate of .00075 
     percent. And that's not even per year. It's per ever.
       Even some Republicans used to think that was pretty good. A 
     bipartisan commission on the IRS recently concluded that 
     there was no systematic abuse of taxpayers. The commission 
     found very few examples of IRS personnel abusing power, its 
     report noted.
       What about the IRS using revenue quotas? To the extent this 
     happened, it was a response to pressure from Capitol Hill. In 
     1995, the newly elected Gingrich Congress passed a compliance 
     initiative authorizing the hiring of 1,200 new agents. It 
     demanded data from the agency to show that the money was 
     being well spent.
       But didn't we at least learn that the IRS persecutes the 
     poor? There has been a sharp decline in audits of taxpayers 
     with incomes of more than $100,000, and an increase for those 
     under $25,000. But there are some innocent explanations. In 
     1990, the IRS began categorizing non-filers about whom it 
     lacked information in the $25,000 and under category. It 
     audited more of them after Congress demanded that it prevents 
     cheating on the Earned Income Tax Credit, which goes to the 
     working poor.
       Upper income audits dropped when shelters were closed by 
     tax reform in 1986. Despite the weakness of these and other 
     charges, Republicans seem to think IRS bashing makes a great 
     theme. Trent Lott, the Senate Majority Leader, recently 
     slashed the agency as intrusive, abusive, and out of control. 
     That's not a bad soundbite. But the IRS isn't out of control. 
     Its critics are.

     

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