NAPS ACTION ALERT – April 14, 2015

Urge Your House Lawmaker to VOTE NO on H.R. 1563, the Federal Employee Tax Accountability Act
On Wednesday, April 15, the House of Representatives is scheduled to consider H.R. 1563, the Federal Employee Tax Accountability Act of 2015.

Send a message to your House lawmaker to encourage them to vote NO on H.R. 1563 by clicking here.

The measure would require the federal government to fire federal and postal employees who have an outstanding tax lien. It would amend federal law to make individuals with any federal tax liability ineligible for federal employment.

NAPS believes that every person, and particularly every federal and postal employee, should pay their taxes in full and on time. But NAPS (and other federal and postal employee groups) oppose H.R. 1563 because it is unwarranted, counterproductive, and costly.

The tax delinquency rate for federal employees is less than half that of the general public and lower than the delinquency rate for the House of Representatives. In 2013, the tax delinquency rate for the general public was 8.7%, and the delinquency rate for House Members and staff was 5.04% in 2014. Yet, the tax delinquency rate for federal workers in 2014 was only 3.12%.

The Internal Revenue Service already has procedures in place to recover back taxes from federal employees. For example, through the Federal Payment Levy Program, the IRS can impose a continuous levy on federal salaries and annuities up to 15%, and additional levies are available if appropriate. The IRS has confirmed that it does not have a problem collecting delinquent taxes from federal employees.

H.R. 1563 would make it more difficult to collect unpaid taxes from federal employees by requiring their termination and eliminating the ability to impose levies on their federal salaries.

The Congressional Budget Office has concluded that it would have a net cost for implementation, while the Joint Committee on Taxation has found that it would have a “negligible impact” on revenue.

For these reasons, NAPS opposes H.R. 1563 and urges you to contact your House Member TODAY, before Wednesday’s vote, to request a NO VOTE on the measure.
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Bruce Moyer
NAPS Counsel