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Treasury to shut down private collection

March 06, 2009

The Treasury Employee's Union had its way with its nominal boss yesterday when Treasury Secretary Geithner informed Senator Grassley that he was killing the pilot private debt collection program. This will make sure that the smaller tax debts pursued by the private contractors will go uncollected while making sure only NTEU members in good standing fail to pursue those debts.

As for the 60 non-union Iowans who had been working in the private debt collection program, well, maybe they can get a job with a good union contractor if Iowa passes its pending "prevailing wage" legislation.

Kay Bell says it was an IRS decision, but Geithner's involvement makes it look otherwise.

UPDATE: The Tax Rascal has his own take on "tax mercenaries" (though I think the IRS collection people get paid too) that seems logical, but will never fly with the union.

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This is pretty unfortunate: . Using a market solution to help people deal with tax debt would have been a great ide.a

On the other hand, did Grassley really go to all that trouble, and spend all that political capital, to protect just sixty jobs?

I'm sure he gets a lot more credit at home for "fighting for Iowa jobs" than he gets grief from NTEU, which will always oppose him in any case.

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