In another brilliant demonstration of this Congress's fiscal management skills, the IRS will now be turning over thousands of delinquent tax cases to private debt collecdtors.
According to an article in Sunday's New York Times, this new policy will be much less cost effective. For example, the article says that "by hiring more revenue officers, the I.R.S. could collect more than $9 billion each year and spend only $296 million — or about three cents on the dollar." However, "the private debt collection program is expected to bring in $1.4 billion over 10 years, with the collection agencies keeping about $330 million of that, or 22 to 24 cents on the dollar."
So what is the advantage of this new program?