Quote:
Originally posted by Tyrone Slothrop
This is batshit crazy:- Over 10 years, the companies hired are projected to collect overdue taxes totaling $1.4 billion, $330 million of which the companies keep as fees. According to the IRS' own estimates, over those same 10 years, the agency could collect $87 billion in unpaid taxes at a cost of just under $300 million — if allowed to hire sufficient personnel. In total, utilizing the private sector instead of augmenting IRS personnel would leave in the hands of delinquent taxpayers more than $85 billion owed to the federal government.
Spanky, is there someone you can call about this?
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The numbers in that paragraph make no sense. They say it's 8 times less efficient (3c v. 23c) but will collect 80x the revenue for the same cost?
Second, I suspect this is applees to oranges. The collection rates now are for larger delinquencies, whic of course are cheaper to collect. Furthermore, I suspect that they aren't taking into account the compromises they give (i.e., we'll settle for half). Turning it over to a private collection agency, for the small stuff, with compromise authority, will naturally lead to lower collections.
