Tuesday, May 18, 2004

The Washington Post has an interesting article on the Senate-approved legislation to privatize tax collections. Not surpisingly, the National Treasury Employees Union opposed the legislation, arguing that the IRS could collect taxes more efficiently than private collections if the agency increased its staffing levels. The union claimed that every $1 spent on IRS staffing would produce a $29 return to the Treasury, while every $1 spent on private collectors would return only $3 to the Treasury after the payment of commissions.