[Congressional Record Volume 153, Number 157 (Wednesday, October 17, 2007)]
[Extensions of Remarks]
[Pages E2158-E2159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROVIDING FOR CONSIDERATION OF H.R. 3056, TAX COLLECTION RESPONSIBILITY 
                              ACT OF 2007

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                               speech of

                            HON. PETER WELCH

                               of vermont

                    in the house of representatives

                      Wednesday, October 10, 2007

  Mr. WELCH of Vermont. Mr. Speaker, I want to thank the gentleman from 
New York, Mr. Rangel, for his work in bringing H.R. 3056 to the House 
floor. I have received feedback from Vermont citizens and members of 
the National Treasury Employees Union (NTEU), both in Vermont and 
nationwide, strongly urging the repeal of the IRS authority to use 
private debt collectors. There has been much concern for this practice 
of using ``private bounty hunters.'' National NTEU employees expressed 
deep concern for outsourcing of inherently governmental jobs.
  In January, 2007, the National Taxpayer Advocate, who is appointed by 
the Treasury Secretary, sent a strong message to Congress urging repeal 
of this authority as a burden and cost to taxpayers. Taxpayers have 
faced overzealous intimidation and abuse by private collectors as well 
as the loss of privacy and confidential information. The Taxpayer 
Advocate reported to Congress that ``the money spent on the IRS Private 
Debt Collection initiative is

[[Page E2159]]

an inefficient use of government dollars.'' The National Taxpayer 
Advocate Service has testified that IRS employees bring in $20 for 
every dollar IRS spends, whereas private debt collectors bring in only 
4.
  This bill will reverse these inefficiencies and abuses on the 
American taxpayer.
  I have also heard from other Vermont organizations, including many 
Builders Associations and other federal, state, and local government 
contractors, voicing strong support for the delay in implementation of 
certain tax withholding provisions provided in this bill. H.R. 3056 
postpones for one year, until December 31, 2011, the application of a 
three-percent withholding requirement on the payments of goods and 
services made by the U.S. Government, States, and local governments. 
This delay allows the Treasury Secretary the time to study issues 
associated with the three-percent withholding, including the burdens to 
small businesses as well as the application of the tax to small 
expenditures for goods and services by governments.
  I strongly urge my colleagues to support passage of this rule and the 
underlying bill.

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