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Federal Workers Don’t Pay Taxes Either

Given the recent and seemingly endless revelations of tax cheats amongst the Obama nominees, it might be timely to post this article from last September from Washington DC’s radio station WTOP:

Federal workers owe billions in unpaid taxes

Mark Segraves, WTOP Radio

September 15, 2008

WASHINGTON – From the U.S. Postal Service to the Executive Office of the President, thousands of federal workers have not paid their 2007 federal income taxes.

The Internal Revenue Service is trying to collect billions of dollars in unpaid taxes from nearly half a million federal employees. According to IRS records, 171,549 current federal workers did not voluntarily pay their federal income taxes in 2007. The same is true for 37,752 active duty military and nearly 200,000 retired civilian and military personnel.

Documents obtained by WTOP through the Freedom of Information Act show 449,531 federal employees and retirees did not pay their taxes for a total of $3,586,784,725 in taxes owed last year.

Each year the IRS tracks the voluntary compliance rate of all federal workers and retirees. The percentage of employees and retirees who are delinquent has gone up and down over the past five years, but the amount unpaid has increased each year topping $3.5 billion for the first time in 2007.

The agency with the most delinquent employees is the U.S. Postal Service. With more than 747,000 employees, the postal service is the largest employer in the federal government, but with a 4.16 percent delinquency rate, it is a full 1 percent above the average compliance rate this year.

The IRS would not provide comparable data for the general population. But a spokesperson for the IRS did supply the delinquency rate for IRS employees — less than 1 percent. The IRS is the only federal agency where an employee can be fired for not paying his taxes.

The Executive Office of the President, which includes the White House, has 58 employees who did not pay $319,978…

In fact, 152,554 of the delinquent feds have entered into payment plans. Nevertheless, $2.7 billion remains uncollected.

Other notable agencies with high delinquency rates include the Smithsonian Institution, where nearly 5.5 percent of the employees didn’t pay their taxes. On Capitol Hill, more than 1,000 workers are on the list. The Government Printing Office has the highest percentage of delinquent employees with 7.23 percent.

Oddly enough, just a few days later we got these tidings, via the Sacramento Bee:

Federal workers get pay raise

September 29, 2008

Civilian federal employees get a 3.9 percent pay raise for fiscal 2009, as noted in this weekend press release by the Federal Managers Association.

The association notes that, " … according to the Bureau of Labor Statistics, there currently exists a 30 percent pay deficit for public-sector employees versus their private-sector counterparts. … Unfortunately, the public sector continues to lag behind the private sector in the area of compensation."

So much for crime not paying.

(Thanks to Canary for the heads up.)

This article was posted by Steve Gilbert on Wednesday, February 18th, 2009. Comments are currently closed.

19 Responses to “Federal Workers Don’t Pay Taxes Either”

  1. Weasel

    I’m going out on a limb here, but I’m guessing that most non-military federal (and state) workers are democrats. And this explains why democrats don’t want or care about tax cuts – apparently a good number of them rarely pay their taxes, so why worry about cutting something you don’t pay anyway?

    • BillK

      Not true for many agencices – think many of those working for the three letter agencies (FBI, NSA, NRO, etc.)

    • Weasel

      BillK – I agree for those agencies, but they are relatively small compared to the rest of the government. The FBI is probably the largest of these agencies and they have about 30,000 employees. Here is a breakdown for the civilian federal government employees:
      http://ftp2.census.gov/govs/apes/06fedfun.pdf
      http://www.bls.gov/oco/cg/cgs041.htm (see table 1)

    • BannedbytheTaliban

      As a federal employee, most of the people I work with are ardent liberal democrats, much like working in Hollywood. I usually just keep my opinions to myself and do my job. To that extent I am often taken advantage of because most people here work 2-3 hrs a day, tops. To our defense though, when they announced the 3.9% inflationary pay raise, the email stated: “GAO estimates inflation for 2008 was 7.4%, as a result, the inflationary pay raise will be 3.9% for 2009.” In other words, you will be making 3.5% less in 2009 (or in reality you pay will have 3.5% less purchasing power.)

    • proreason

      Government workers are a key Democrate constituency.

      If you don’t believe it, look at the Depression Stimulus bill. 600,000 new government jobs.

      No way government jobs would be created by The Moron if they didn’t vote heavily for the commiecrats. No way on earth.

      But you can prove it to yourself other ways. Ask yourself this…..if you are a government worker, dependent on that income for your livelihood, which party will you vote for to insure continued employment. To ask the question is to answer it. Obviously, and without doubt, a very high % of government workers vote for the party of Big Government.

      Then ask yourself this….if you are a government worker and would like to advance and make more money, which party will you vote for. Well, considering that there are tons of dead wood on top of you in the feeding trough, the only way to advance is to GROW your area. So you vote Democrat, for sure.

  2. DGA

    “The agency with the most delinquent employees is the U.S. Postal Service.”

    Yup, and most post office employees are obama voters for sure. Oh, for what it’s worth, 80 percent of the post office’s expenses are for wages! So, overpaid, lazy (have you been to a post office lately?) obama voters who are tax cheats, gee, what are the odds?

  3. Lurkin_no_mo

    Oh! Owwww. Hey, I’m one of these federal employees. But I do pay my taxes as do my brothers in the military. I will admit that I get a refund every year, except for one year where I got a bonus.
    Most military folks get refunds, it’s not like we’re making millions of $ here.

  4. catie

    Yeah military folks have to pay their taxes or we lose security clearances or go to jail.
    The Post Office does not surprise me though, half the time my neighbors get my mail and I get theirs, plus they are personality plus when you’re having to deal with them in the P. O.

    • Confucius

      Me too!

      And get this. Two years ago, my mail carrier left a “holiday card” asking for a gift.

      So I did. I turned her in to the Postmaster General for: (1) soliciting and (2) leaving messages that were not processed by the USPS in a private mailbox which is a federal offense.

      Merry Holiday!

  5. heykev

    The IRS is the only federal agency where an employee can be fired for not paying his taxes.

    I really don’t understand this. All Fed employees should be setting an example for the rest of the country and paying taxes. To do otherwise is as our VP says unamerican. There shoiuld be clauses so that non-payment of taxes is something we can fire them for.

    Here’s an interesting article I believe Proreason will like regarding monies being removed from USA by Soros-esk types of people.
    http://solari.com/blog/?p=2058

    • proreason

      Thanks heykev. Fascinating stuff. Tons of information in this solari blog. Here’s a money quote:

      “In fact, if you look at the value of most 401(k)s and IRAs lately, a great deal has already been “confiscated.” The mainstream media has described these losses as part of the normal economic cycle, but this is a fallacy. The losses are the result of a financial coup d’etat, including fraudulent housing bubbles, pump and dump schemes, naked short selling, precious metals price suppression, and active intervention in the markets by the government and central bank

      Solari build a case that there has been a financial coup d’etat that has been going on for a long time. the housing fraud perpetrated by the government is part of it. I didn’t see where she doesn’t speak directily to the events of Sep / Oct 2008, but there is several hours of reading in her blog.

      One more person who doesn’t believe that the wipe-out of 401K’s, growing unemployment and declining standards of living are “normal events”.

    • heykev

      Yes, that is really interesting stuff. She worked for Bush I.
      It would be nice to be able to see what her take on the events you mentioned are. There is quite a bit of information there, but will have to read it at a later time as I have to prepare for a phone interview I have to do some consulting work for a rather large Fortune 100 company. Like many here, I can really use a job.

  6. Confucius

    “The IRS is the only federal agency where an employee can be fired for not paying his taxes.”

    Really? Then who does Timothy Geithner work for?

    • Right of the People

      They work for him. The Infernal Revenue Service is under the Treasury Department.

    • Confucius

      Isn’t that terrific?

      With Geithner at the helm, maybe the IRS will overtake the USPS as the #1 employer of tax cheats.

  7. golfmann

    I’ve argued for YEARS with Fed and state employees this fact:

    They don’t pay taxes anyway!

    Since they are being paid by tax money, all they are actually doing is REBATING against the tax bill that is their salary.

    It’s us schlubs that pay the REAL taxes out of things produced or services rendered.

    Have a nice day Mr. Postman… Oh wait, he retired years ago.

    God save America

  8. DerKrieger

    No hurt feelings intended for our government friends but government workers don’t really pay taxes, all they do is return a fraction of the taxpayer dollars used to pay them to the government. Tax “payers” only really exist in the private sector. Government workers are tax “returners”.


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