Boehner Statement Opposing Democrats' Bill to Terminate Successful Initiative that Helps Close the "Tax Gap"

WASHINGTON, D.C. – Congressman John Boehner (R-West Chester) today criticized Ways & Means Committee Democrats for approving legislation (H.R. 3056) that would terminate a successful initiative that allows the Internal Revenue Service (IRS) to use private contractors to collect unpaid taxes the IRS bureaucracy is unable or unwilling to pursue from individuals who have broken our laws. The successful program has helped close the “tax gap” – the difference between what taxpayers owe and what they pay.

The action by Democrats today comes after Ways & Means Committee Senior Republican Jim McCrery (R-LA) led a successful effort on June 28 during debate over the FY 2008 Financial Services Appropriations bill which saved American taxpayers more than $1 billion by preventing Democrats from eliminating this initiative. Boehner issued the following statement:

“There is not a single good reason to gut this common sense initiative that has proven effective for law-abiding taxpayers and helped close the ‘tax gap’ at a time when Democrats are asking middle-class families to pay more, and not less, in taxes. It deserves to be expanded, not eliminated. The majority’s move represents yet another payoff to Big Labor and government unions who oppose any private debt collection whatsoever, whether or not it is saving money for law-abiding taxpayers.

“Democrats claim they are serious about closing the ‘tax gap’ yet their bill would essentially allow tax cheats to continue gaming the system unchecked. At the same time, Democratic leaders are asking middle-class families to carry more of the tax burden by passing the largest tax increase in American history. It is ironic that Democrats are so quick to impose tax hikes on hard-working families, yet so reluctant to collect taxes from individuals who break our laws.”

NOTE: The private unpaid tax collection program permits a small number of companies to collect unpaid taxes from individuals whose tax amounts are not in dispute. The program includes tough taxpayer rights protections to safeguard against abuse.