The fuss over federal workers and delinquent taxes

[Charles Kozierok]

This appears to be the latest right wing outrage du jour:

If you owe back taxes, you might be mollified to know that 311,566 federal workers and retirees do too. Or maybe it will make you mad. The latest count showed they owed over $3.5 billion in taxes in 2011 (up from $3.4 billion in 2010.

Every year the unhappy tally goes up: $3.3 billion in 2009, $3.0 billion in 2008, and $2.7 billion in 2007). It can be a maddening number especially if you start looking department by department to see which agencies harbor the biggest tax debtors. In the past, the U.S. Office of Government Ethics was one of the worst.

Okay, so this is not right, we shouldn't have people not paying taxes they owe the IRS. But, read on and we find:

According to the IRS, 8.2 percent of the population was delinquent on their federal taxes at the end of 2011. That’s up from 7.8 percent the year before.
...
Overall, the 9.8 million workers included in the data had a delinquency rate of 3.2 percent.

So, less than half the rate of the general public.

Does that make this yet another tempest in a teapot? Probably. I can understand believing that people who work at the highest levels in the federal government should have a spotless record in this regard -- we shouldn't have congresscritters or cabinet members who owe taxes. But most federal workers are just normal people, and the stats show they are already far better than average.

--

As an amusing aside, I heard some talk radio stooge going on about this the other night. He must have ranted for five straight minutes, reading off statistics from various federal departments whom he said were "not paying their fair share". (He, of course, did not mention the relative delinquency rates quoted above. Don't you know how propaganda works?)

As I was listening to it, I thought to myself, "gee, I wonder if this guy also has those tax abatement ads running on his show". Sure enough, a few minutes later, a radio ad comes on telling me all about how their company that can help me get out of trouble with the IRS by paying only a fraction of what I owe.

 

[EagleKeeper]

Spotless record - haha

Look at who Obama chose for his number one man in the treasury - that sets an example.

 

[Charles Kozierok]

I said *should* have a spotless record. Not that they *do* have a spotless record.

At any rate, this is not about Obama or Geithner (who was already current when he was nominated anyway.)

Well, I guess it is in a rather indirect way -- does it matter that Geithner had had a tax screwup earlier? Should that have disqualified him, when it probably wouldn't from most other jobs?

The larger question is whether or not it's a big deal for 3.2% federal workers to be delinquent when that's a fraction of the rate of the general population.

 

[Lithium381]

Blame the sequester for cutting their pay. . . . oh wait

As long as they're held to the same standards as everyone else and have to pay their penalties and have wages garnished. . . then fine. Hope they're not getting special treatment due to their positions.

 

[stormkroe]

I read that the core rage was that 40 out of 450 people on the Whitehouse staff were in that group of delinquents, which is around 8.9%. They should be bringing the average up in most people's opinions. I agree with lithium, at least hold them equally accountable with us peons.

 

[CPA]

Well, I was hoping that the Discussion Forum would leave out the undertones of left versus right, but sadly I see I am mistaken.

That said, I'm not sure what the point of the delinquency rate has to do with the fact that Federal workers, who are paid with taxpayer money are delinquent in paying into the system that supports them.

I look at this akin to police officers who speed. Whether or not they have a lower rate of speeding, the point is they are the arbiters of speeding. It's hypocrisy.

 

[Charles Kozierok]

Well, I was hoping that the Discussion Forum would leave out the undertones of left versus right, but sadly I see I am mistaken.

What would be the fun in that?

I look at this akin to police officers who speed. Whether or not they have a lower rate of speeding, the point is they are the arbiters of speeding. It's hypocrisy.

But.. they *do* speed. All the time. Perhaps not the best example, though I do get your point.

Hypocrisy may apply if someone who is actively proposing tax legislation is caught being a tax cheat. But really, how does it apply specifically to average Joe works-in-some-federal-department?

stormkroe... Since Obama heads the White House, and he *does* talk a lot about "fair shares", I agree that they should be setting a good example and they need to clean up their act.

It's not widely reported that they're getting better...

According to the IRS, some 40 White House aides owed a total of $333,485 in overdue tax. Last year at this time, some 36 White House aides owed a lot more — $833,000 — so it’s fair to conclude that there has been a significant improvement in tax compliance obligations year over year at 1600 Pennsylvania Avenue.

... but they have a ways to go.

 

[Fern]

Well, I was hoping that the Discussion Forum would leave out the undertones of left versus right, but sadly I see I am mistaken.

That said, I'm not sure what the point of the delinquency rate has to do with the fact that Federal workers, who are paid with taxpayer money are delinquent in paying into the system that supports them.

I look at this akin to police officers who speed. Whether or not they have a lower rate of speeding, the point is they are the arbiters of speeding. It's hypocrisy.

Re: Bolded. yeah, I think that's what bothers people.

As regards the delinquency rates - I'll bet a lot of the general population that owes delinquent taxes are either unemployed (laid off or business failures) or suffering a substantial decline in income. Those govt workers are not.

While it's not issue that much concerns me, I am curious how those govt workers got into trouble. The fed govt s/b adequately withholding on their wages. I expect that a good portion of those in the general public owing back taxes are self employed etc and must rely on quarterly estimated taxes. I have seen so many people that must rely on estimated taxes get themselves into trouble.

Fern