To the People

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or TO THE PEOPLE.

Wednesday, March 28, 2007

Taxpayer Bill of Rights Frauds

The Democratic-controlled House Ways and Means Committee approved legislation today (by voice vote) billed as protecting taxpayers (HR 1677, Taxpayer Protection Act of 2007). There's just one catch: it doesn't protect taxpayers. In fact, it will actually make taxpayers worse off by increasing interest rates and increasing welfare spending.
The provision affecting so-called “refund anticipation loans” would allow the IRS to exclude companies it deems predatory lenders from the agency’s Debt Indicator program. Under that program, the IRS informs lenders whether a particular taxpayer owes the government other payments that would be subtracted from a refund, giving the lender information that is useful for approving the loan.

Under current law, “we’re aiding and abetting predatory lending,” said Rep. Earl Pomeroy, D-N.D.

Rep. Jim Ramstad of Minnesota, the ranking Republican on the Ways and Means Subcommittee on Oversight, said he shared other members’ concerns about the refund loans, which often carry high fees and interest rates. Yet Ramstad said he was concerned that the bill lacks a specific definition of predatory. And, he said, denying companies information from the Debt Indicator program may encourage some to raise rates.

[...]

Other provisions in the bill would limit use of the IRS name and symbols by private Web sites, give taxpayers more time to reclaim money wrongfully seized by the IRS and require the IRS to contact more taxpayers who may be eligible for
the earned income tax credit.
Via CQ (subscription required).

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