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THE Federal Employee Thread (merged)

A forum for discussion of regional topics including oil depletion but also government, society, and the future.

Federal Workers Owe $1Billion in Back Taxes

Unread postby Sixstrings » Sat 20 Mar 2010, 20:56:03

Around 100,000 federal employees owe the U.S. roughly $1 billion in back taxes and one Republican lawmaker thinks they should pay up or lose their jobs.
According to an ABC News report, Rep. Jason Chaffetz, R-Utah, has introduced a bill that would seek out and terminate federal workers with "seriously delinquent tax debt" while also preventing the hire of any new employees who owe money to the IRS.

"If you get to the point where the government is putting a lien on their property and they've exhausted their appeals ... the right thing to do is fire them as a federal worker," he told ABC. "If you're going to take federal tax dollars, you should be paying your federal taxes."

Of the 2.8 million federal employees throughout the country, more than 3 percent owed unpaid taxes in 2008, according to the IRS. And that's not including retired workers or military service members. Factor them in and the numbers spike to around 276,000 current or former workers owing roughly $3 billion, according to the report.

Chaffetz says his bill mirrors efforts by the Obama administration to end federal contracts with companies that owe taxes, which the president directed federal agencies to do in January.

But some say there are some fundamental flaws in Chaffetz's proposal.

Rep. Stephen Lynch, D-Mass, said that firing workers as soon as a tax lien is imposed would circumvent due process, as the employees would be entitled a hearing. Lynch also said the current system is effective.

"For a federal employee, we have the [IRS] garnish their pay at 15 percent -- which is higher than for the regular taxpayer. We're getting the money back," he told ABC.
http://www.cbsnews.com/8301-503983_162-20000688-503983.html


Hm, this is interesting. It's not really an outrage since their wages do get garnished, but then again federal workers are making more than those in the private sector.

What strikes me is just how big the number is, 100,000 current employees owing 1 billion. That's an average of $10,000 back taxes per worker. Obviously, most probably owe less than that so what you have is a still very large number of federal employees who must owe God knows how much in back taxes.

By percentage, this is 3% of all federal workers. Maybe owing back taxes is more common than I thought? I wonder what the percentage is for the general population.
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Re: Federal Workers Owe $1Billion in Back Taxes

Unread postby mattduke » Sat 20 Mar 2010, 23:09:16

Between a private employer and employee, the government is a third party. Between government and government employee, there is no third party. Government employees don't pay taxes. Filing is a formality.
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