Private tax collection opposed

WASHINGTON -- The House voted 232-173 last week to end a program which allows private companies to collect taxes for the Internal Revenue Service.

Ending private tax collection would cost the government $1.1 billion over the next decade, according to the Joint Committee on Taxation.

But supporters of the legislation said tax collection is a governmental function, and private contractors should not be contacting delinquent taxpayers and urging them to pay.

Opponents argued the private sector can more efficiently collect taxes, and this would give IRS workers more time to concentrate on pressing tax issues.

Despite the favorable vote, the bill's prospects appear dim because of a veto threat by President Bush and resistance from the Senate, which did not meet last week.

Rep. Shelley Berkley, D-Nev., voted to end tax collection by private companies.

Reps. Dean Heller and Jon Porter, both R-Nev., voted to continue tax collection by private companies.

ESTATE TAX PRESERVED

An amendment to permanently repeal the tax on the transfer of a dead person's estate failed in the House by a vote of 212-196.

Republican sponsors of the amendment said the estate tax, which they often derisively call the death tax, is unfair because it can result in double or even triple taxation on assets.

Democratic critics of the legislation said the estate tax should continue because it prevents rich families from perpetuating their wealth without taxation.

Heller and Porter voted for a permanent repeal of the estate tax.

Berkley voted against repealing the estate tax.

LOW-INCOME HOUSING EXPANDED

The House voted 264-148 to increase the federal government's construction of affordable housing for low-income people.

The measure would create a national housing trust fund to pay for refurbishing or maintaining 1.5 million affordable housing units over 10 years.

Advocates of the bill said it would end years of neglect by the federal government and ease a terrible housing crisis.

Opponents argued the legislation would not only duplicate duties of the Department of Housing and Urban Development but divert money from some HUD programs.

Berkley and Porter voted to increase the federal government's construction of low-income housing.

Heller voted against increasing the federal government's construction of low-income housing.

WAR PROFITEERING PUNISHED

Contractors who defraud the U.S. government in connection with the Iraq war would face up to 20 years in prison under a bill overwhelmingly approved by the House by a vote of 375-3.

War profiteers also would be fined $1 million or twice the gross profits of their contracts, whichever is higher.

This was the latest in a series of bills by Democrats to underscore corruption among war contractors in Iraq.

Critics grumbled the legislation goes too far and takes political potshots.

Berkley, Heller and Porter voted for the penalties against war profiteering.