NTEU Applauds House Vote Rejecting Tax-Debt Firing Bill

Press Release April 16, 2013

Washington, D.C.—The head of the National Treasury Employees Union (NTEU) welcomed action last night by the House of Representatives to reject legislation mandating the firing of virtually any federal employee with a tax debt while exempting members of Congress.

“I am pleased to see the House vote down this bill that was nothing more than a political stunt by House leadership to bring this measure to the floor on tax day,” said NTEU President Colleen M. Kelley

The legislation was introduced by Rep. Jason Chaffetz (R-Utah).

In the days leading up to the vote, NTEU pointed out the reasons the bill was unnecessary including the high compliance rate of federal workers in paying their taxes; the system already in place to deal with those who owe back taxes; and, the obvious conclusion that someone without a job is far less likely to be able to pay taxes owed.

President Kelley also noted that federal employees are in the third year of a pay freeze and many are facing unpaid furlough days resulting from sequestration.

“Furlough days will result in an actual pay cut,” she said. “I would think and hope Congress would be working to avoid these kinds of consequences for this dedicated workforce. I note, with some irony, that Congress is exempt from the furloughs facing the federal workforce and would have been exempt from the Chaffetz bill as well.”

While NTEU strongly supports the idea that everyone should meet his or her tax obligation, the existing processes provide for disciplinary actions by federal agencies ranging from counseling to removal for failing to satisfy federal, state or local tax obligations. The Internal Revenue Service also has the right to levy up to 15 percent of certain federal payments, including federal salaries, for tax debts.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.

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