Courage Of Convictions: The Tax Collector And The Republican
Congressional Republicans constantly remind us that principle is more important than principal. They are willing to shrink government at all costs. The latest example comes from the new budget agreement that has an impact on the IRS and tax collections.
Tax collection is one of the IRS’s principle functions as we are all reminded this time of year. There are some who not only refuse to cheerfully pay what they owe but actively take steps to avoid paying taxes they owe. As a result, some IRS employees have as their main job, identifying those people and taking steps to encourage them to pay what they owe.
In 2006, Republicans in Congress came up with a whole new approach that provided employment to the non-governmental sector, a group that is always favored by Republicans. (That is because Republicans know that those who work for the government tend to be lazy and inefficient whereas those in the private sector are hard working and productive. That is, of course, something of a generalization, since occasionally someone in the private sector will disappoint and prove to be lazy and/or unproductive.)
Because of the Republican belief in the virtues of the private sector (which is almost as fervent as its belief that in taking funds from programs for children and the poor it is doing God’s work), in August of 2006 it was announced that within a couple of weeks the IRS would turn over to private collection agencies 12,500 delinquent tax accounts of $25,000 or less. According to the New York Times, this new way of collecting taxes was thought up and put in place by the Bush administration. The plan had, like many plans do, an upside and a downside.
The upside was that the debt collectors were part of the private sector. Under the private debt collection system the collectors would collect $1.4 billion each year of which they could keep $330 million, thus lining the private sectors’ pockets by that amount instead of having it go into a government pocket where it would, in all likelihood, get lost. Although that seems like a win-win, in 2002 Charles Rossotti, the Commissioner of Internal Revenue, had told Congress that if it hired additional IRS employees to handle collections, it could collect more than $9 billion each year at a cost of only $296 million, considerably less than the cost if the same work was done by private collection agencies. That came out to a cost of $.03 per dollar collected. According to the NYT, his testimony was correct but Congress didn’t want to swell the size of government by authorizing the hiring of additional personnel for the IRS. Charles Everson, IRS Commissioner in 2006, when the private debt collection program was implemented, agreed with Mr. Rossotti and said it was more efficient to hire more IRS personnel but Congress would not appropriate the funds it needed to do that. Congress’s reluctance is a perfectly sensible approach since if you want to shrink government you have to make sacrifices and in this case, the sacrifice is increased revenue.
In 2008 Democrats took control of both houses of Congress and in March of 2009 it was announced that the IRS had determined that IRS employees could do collection work more efficiently than the private debt collectors, just as Rossotti and Everson had said some years earlier, and there was no reason to continue the program. Senator Grassley, who was the top Republican on the Senate Finance Committee, was outraged. Ignoring the fact that the government would have more money if the IRS were responsible for collections, he said the IRS was caving in to “union-driven political pressure.” He would have rather seen the federal government lose money than take away business from the private sector. The last chapter in this saga, however, has not been written.
Now that the budget compromise had been reached here is one of the things that has happened. The White House had requested an increase in the IRS budget of approximately 9% which would have enabled the agency to hire an additional 5000 personnel. Many of those could have been used to collect taxes which would have helped reduce the deficit. Echoing what Messrs. Rossotti and Everson had said years earlier, Treasury Secretary, Tim Geithner, who testified before Congress in March, said: “Every dollar invested in IRS yields nearly five dollars in increased revenue from non-compliant taxpayers.”
Republicans have refused to authorize the hiring of additional personnel at the IRS in order to collect taxes. A release from John Boehner’s office said increased funding for the IRS had been denied as part of the budget agreement. This shows that the Republican majority has the courage of its convictions. The rest of the country can enjoy the benefits of living off the fruits of its follies.
By: Christopher Brauchli, CommonDreams.org, April 16, 2011
Few Heard At Wisconsin Budget “Hearing” In Milwaukee, But School Choice Advocate Denounces Walker’s Subsidy For Rich
At Monday’s public hearing in Milwaukee on Governor Walker’s budget, Wisconsin Republicans once again resorted to anti-participatory tactics to avoid criticism of their far-right agenda. Despite these efforts, strong criticisms were squeezed-in by longtime Milwaukee school choice advocate Howard Fuller, calling GOP efforts to lift income limits on school vouchers an “outrageous” program “that subsidizes rich people.”
Republicans Regulate Milwaukee Hearing
Milwaukee’s hearing at State Fair Park was the third of four statewide sessions on Walker’s proposed budget by the Republican-controlled Joint Finance Committee, and controversy arose well before the hearing began. According to the Milwaukee Journal-Sentinel, two of Milwaukee’s congresswomen, Rep. Tamara Grigsby and Sen. Lena Taylor, were concerned that many working people would be excluded because the hearing was scheduled to end at 6pm. The two arranged to hold informal sessions until 9pm to allow people to voice their opinion, then notified Joint Finance co-chairs Rep. Robin Vos (R-Burlington) and Sen. Alberta Darling (R- River Falls) about their plans.
Sen. Darling reportedly approved the Grigsby-Taylor informal hearing and Rep. Vos “said he would think about it.” However, Taylor soon received notice from State Fair Park that Vos had reserved the facility until midnight, meaning the Dems’ hearing could not take place, and Milwaukee’s working population could not have their voices heard.
According to Taylor, “This isn’t open government. This is not democracy. This is shameful.”
Beer City Blockage the Latest in a Series
Vos and Darling were unabashed about their intention to suppress opposition, with Darling telling the Journal-Sentinel “we had to take precautions so that what happened at the Capitol wouldn’t happen at State Fair Park.”
“The hearings are going to be done when we say they’re done,” Vos said.
This is only the latest in a series of Wisconsin GOP efforts to limit scrutiny and stifle dissent. On February 11, Governor Walker sought to limit deliberation on his budget repair bill by introducing it on a Friday and ordering a vote on a Tuesday (Senate Democrats thwarted these plans by leaving the state). The Walker Administration violated the constitutionally-guaranteed right of public access to the state capitol in late February, and a judge ordered it re-opened; the administration violated that order in March and a hearing on that violation is pending. On March 11, Republicans forced the union-busting budget repair bill through the Senate with minimal notice, breaking state Open Meetings laws and possibly violating the constitution’s public access guarantees.
Hearing Limits Input from Milwaukee’s Particularly-Affected Populations of Color
This latest step towards suppression is especially egregious considering Milwaukee is not only the state’s largest city, but has the most people of color, a population that will be particularly affected by Walker’s budget and budget repair bill. The plans eliminate funding for a new program to track and remedy racial profiling (the first step towards confronting Wisconsin’s atrocious record of racial disparities in incarceration); will limit eligibility for medical assistance; kicks legal immigrants off food assistance; and eliminates funding for a program that provided civil legal services to low income residents. Walker is also expected to cut $300 million from Milwaukee Public Schools (MPS), severely limiting education quality for the district teaching the greatest number of students (and students of color) in the state.
With Republican legislators keeping the Milwaukee hearing short, only speakers who signed up before 12:30pm had their voices heard. Hundreds of people were denied the ability to speak, and as the hearing ended at 6:30pm, there were shouts of “let us speak” and the now-familiar “shame” directed at those lawmakers.
Howard Fuller Heard on Education
While many Milwaukee residents were not heard on Monday, at least one prominent voice spoke strongly against Walker’s plans for Milwaukee schools.
In addition to cutting $300 million from Milwaukee’s public schools (and eliminating teacher’s unions), Walker’s budget reinforces existing inequalities by expanding the “school choice” program, which allows students to opt-out of public schools and use a taxpayer-funded voucher for private school tuition. The voucher program has been criticized not only because it directs money away from public schools, but because private schools can pick-and-choose their students, often selecting those who come from an advantaged background and leaving the rest to suffer in under-funded public schools.
Milwaukee became the country’s first publicly-funded school voucher program in 1990, and it grew under the tenure of MPS Superintendent Howard Fuller. He currently directs an institute at Marquette University that authorizes schools trying to get into Milwaukee’s choice program. Howard has collaborated with Republican lawmakers in the past, many of whom support so-called “school choice” out of belief in free market principles of competition and privatization. While many on the left fear defunding public education, some urban advocates like Fuller have supported vouchers to give promising low-income students a better chance at long-term success by providing education options that would not otherwise be available.
But Fuller, who is now regarded as the nation’s most influential African-American spokesman for “school choice,” strongly criticized Walker’s plans to remove income eligibility caps for the private school voucher program. “Please don’t make it true that you were using the poor just to eventually make this available to the rich,” Fuller said. “If [lifting income eligibility] is done, I will become an opponent of this.”
“I never got into this to give someone like me $6,500 to send their kid to Marquette High School (tuition $15,000 per year). . . This is where I get off the train, I’m not going to go anywhere in America and fight for a program that subsidizes rich people.”
By: Brenda Fischer, Center for Media and Democracy, April 12, 2011
Wisconsin Supreme Court Election Needs Fraud Investigation
Partisans on both sides were ready to scream “fraud at polls” as the balloting wound down in Wisconsin in the recent state Supreme Court election.
Normally, the race would have been a snoozer. Incumbent Justice David Prosser, a former GOP state assembly speaker and failed congressional candidate, won 55 percent of the vote in the first round of balloting. His opponent, an ultra-liberal named Jo Anne Kloppenburg, ran a distant second. But that was before Wisconsin Republican Gov. Scott Walker proposed and won enactment of a series of reforms that change the rules for state government workers in a way that limited their collective bargaining power.
After that, the election was presented as a referendum on Walker’s reforms, one the unions opposed strongly, going so far as to occupy the state capitol building in an effort to block the legislature from doing its business.
Since the court will inevitably rule on the legality of Walker’s reforms, a victory by Kloppenburg would have been a major setback for the new governor since it would have shifted the 4-3 majority on the seven-member Supreme Court from 4-3 conservative to 4-3 liberal.
The morning after the election, the Associated Press was reporting Kloppenburg ahead by just over 200 votes, enough for her to declare victory, even though the margin was close enough to trigger an automatic recount. The GOP was concerned because the heavy presence of pro-union activists in the state from around the country may have been able to take advantage of weaknesses in the state’s election code to unfairly, perhaps even illegally, influence the election.
The GOP was ready to question the validity of the outcome when a reporting error in heavily-GOP Waukesha County was discovered that gave Prosser a lead of more than 7,000 votes.
Now it was the Democrats‘ turn to cry, “Foul!” and to raise the specter of vote fraud.
Both parties are right to be concerned. Elections in Wisconsin are a messy business, particularly because the state allows same-day registration on Election Day, and because of something known as “vouching,” in which voters who can prove who they are can attest to the identity of others seeking to vote.
Something needs to be done. It’s time for a bipartisan effort to look at the entire election. As the Wall Street Journal‘s John Fund wrote recently, “An independent investigation is called for, if for no other reason than to clear the air and to recommend procedures to ensure such errors don’t happen again. Just as many Wisconsin officials have ignored or downplayed evidence of vote fraud (see the Milwaukee Police Department’s 2008 detailed investigation) so too have sloppy election procedures been allowed to fester in some counties.”
He’s right. Too many people choose to look the other way when the issue of voter fraud is raised, especially if their party is the one that benefits. Elections are too important to not take these allegations seriously. Wisconsin has the reputation for being a “good government state.” If they want to keep it, Governor Walker should appoint an independent panel to review the election and use it as the basis for a set of electoral reforms that could be a model for the nation.
By: Peter Roff, U.S. News and World Report, April 11, 2011
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