[Congressional Record Volume 167, Number 211 (Tuesday, December 7, 2021)]
[Senate]
[Pages S8946-S8947]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Private Debt Collection Program
Madam President, now on another matter, I want to refer to the debate
that is going on behind the scenes here as Democrats try to put
together a bill that they would call the Build Back Better bill. I call
it the Blue State Billionaire Bailout. It comes from that part that
they are talking about increasing all of the IRS agents by a massive
amount of people to supposedly bring in x number more dollars into the
Federal Treasury. There is some debate about how much it will bring in.
But I want to talk about a program that hires more agents, pays for
more agents, and brings in more money, and that is the Private Debt
Collection Program.
Going back to what is being talked about here in the Senate behind
closed doors in the Democratic Party to put this Blue State Billionaire
Bailout bill together, I go to December 1, Washington Post, Secretary
of Treasury Janet Yellen. The Post gave her two Pinocchios for claiming
that the bloated Blue State Billionaire Bailout package is fully paid
for, or, as she would say, the Build Back Better bill is fully paid
for.
Much of the Post's column focuses on how much revenue Democrats'
proposed increase in the IRS enforcement budget would generate. The
White House and the Congressional Budget Office have offered wildly,
wildly different estimates of what that proposal would do. The estimate
provided by CBO--that is Congress's official scorekeeper--is hundreds
of billions less than the number provided by the White House.
I am noting this disagreement to highlight an existing program that
is bringing in additional revenue without Congress spending 1 dollar
more. I am speaking about, as I previously said, the Private Debt
Collection Program.
Recently, the IRS provided an update of this program's enforcement
and performance for fiscal year 2021. It shows the program is thriving
and bringing in more and more revenue on an annual basis.
Maybe I should give a personal comment on why this program is
important to me, because I think I was chairman of the Finance
Committee--I forget whether it was 2003 through 2006--during that
period of time that we set this program up.
This update on the latest statistics shows that this program, the
Private Debt Collection Program, resulted in net revenue to the
Treasury of more than $1 billion in fiscal year 2021. This is a real
increase of around 129 percent over net revenue in fiscal year 2020 of
around $459 million. That 2020 increase was on top of a more than 100
percent increase in net revenue over the year 2019.
These numbers show that the longer the Private Debt Collection
Program operates, the more it recovers to the Federal Treasury. The
incredible numbers of fiscal year 2021 also reflect several months
where the IRS did not provide new cases to the private debt collection
company, and without cases being given to these private debt
collectors, you aren't going to get more revenue.
In a previous speech, I said that I was going to hold the IRS
Commissioner responsible to his promise to provide additional cases to
the collection companies by September 27.
And, by the way, I also ought to make very clear that this Private
Debt Collection program only goes after taxpayers that aren't paying
and that the IRS has given up on collecting money from.
So Commissioner Rettig has kept his promise. I understand that
additional collection cases were provided. I commend Commissioner
Rettig for following through on his promise to me and for his continued
support of this very worthwhile program.
The Private Debt Collection program also does more than just bring in
revenue into the Treasury. It also pays for the IRS to hire special
compliance personnel who collect unpaid debts that are owed to the
government. Those amounts are reflected in the total fiscal year
numbers that I gave earlier. I understand that the program was also so
successful that the IRS can now hire with this additional revenue up to
400 more employees.
Right now, the Senate is wrangling over how much revenue might be
collected if you increase the budget of the IRS and hire thousands of
additional IRS personnel. So, meanwhile, as I have shown, we currently
have a program that is already bringing in more money year over year,
while paying for additional IRS personnel.
I appreciate Commissioner Rettig's support of this program, and look
forward to reporting to my colleagues on his continued success.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. CORNYN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Murphy). Without objection, it is so
ordered.
The Senator from Texas.
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