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Federal Workers Owe $1.03B In Unpaid Taxes

Buried in the ‘Federal Eye’ section of the Washington Post:

Federal employees owe $1.03 billion in unpaid taxes

By Ed O’Keefe

Congressional staffers owed about $10.6 million in unpaid taxes in 2010, a slight increase from the previous year and a growing slice of the roughly $1 billion owed by federal and postal workers nationwide.

The figures come as Republican efforts to pass legislation allowing federal agencies to fire tax delinquent federal employees have slowed and as the White House continues to crack down on improper payments made by agencies to delinquent government contractors and federal beneficiaries.

About 98,000 federal, postal and congressional employees owed $1.03 billion in unpaid taxes at the end of fiscal 2010, according to records provided by the Internal Revenue Service. The total number of delinquent employees dipped slightly from 2009, but the amount owed jumped by $32 million.

But you can bet their union dues are paid up. By the way, the number of delinquent employees is probably only down because there are a lot fewer Post Office worker since 2009.

The figures are “totally unacceptable and disrespectful to hardworking American taxpayers,” said Rep. Jason Chaffetz (R-Utah). “If you’re on the federal payroll, the very least you can do is pay your taxes.”

Chaffetz and Sen. Tom Coburn (R-Okla.) have authored bills that would force federal agencies, the U.S. Postal Service and congressional offices to fire employees who purposely avoid paying taxes. Exceptions would be made for employees suffering from family turmoil or working to correct significant financial hardship

This bill, if enacted, will just be window dressing, since intention is very hard to prove. And since almost anyone can prove family turmoil and financial hardship if they have to.

[O]n Capitol Hill, 684 employees, or almost 4 percent, of the 18,000 congressional staffers owed taxes in 2010 – a jump of 46 workers from 2009. Four percent of House staffers owed $8.5 million and 3 percent of Senate employees owed $2.1 million, the IRS said.

At the Executive Office of the President – encompassing 1,800 employees of the West Wing, the Office of Management and Budget, the National Security Council and the Office of U.S. Trade Representative, among others – 36 staffers, or 2 percent, owed a $833,970. The amount owed increased by almost $3,000 from the previous year.

Civilian employees of the Defense Department — the federal government’s largest employer — fared the worst. More than 25,600 workers at the departments of the Army, Air Force and Navy owed a combined $225.7 million, while another 4,600 civilian Pentagon employees owed $39.4 million.

Among uniformed military personnel, 2 percent of active-duty troops and 2 percent of reservists owed a combined $339 million. Three percent of the nation’s 2.1 million retired military personnel owed $1.6 billion, according to IRS records.

Delinquency rates topped 3.8 percent at the Department of Education, where 176 workers owed $4.2 million, and at the Department of Housing and Urban Development, where 391 staffers owed $5 million.

At the U.S. Postal Service, 25,640 employees, or 4 percent of the 667,000-strong workforce, owed $269.6 million. Figures for USPS dipped from 2009, likely due in part to ongoing staff reductions.

That would be the only explanation, apparently.

More than 2,000 employees, or 3 percent, of the Social Security Administration owe $20.1 million in unpaid taxes. Five staffers at the U.S. Tax Court owed a combined $62,508 and another five at the Office of Government Ethics owed $22,160.

Fewer than 1 percent of Treasury Department employees, including the IRS, owed $9.3 million, the agency said.

Still, that especially galling?

Just under 2 percent of the 1.8 million federal retirees tracked by the IRS owed $470 million at the end of fiscal 2010…

Meanwhile, the rest of us keep being pestered because we don’t pay our ‘fair share.’

By the way, the persuasive argument could be made that federal government employees already pay nothing in taxes, since they are paid out of the US Treasury. So what they return to the government does not actually enrich the treasury in any way. Which is the purpose of taxes.

Meanwhile, just like in 2009, all federal workers are going to be given another raise, despite Obama’s earlier solemn promise to freeze their salaries.

This article was posted by Steve on Monday, January 23rd, 2012. Comments are currently closed.

11 Responses to “Federal Workers Owe $1.03B In Unpaid Taxes”

  1. P. Aaron says:

    Tax law’s are for the little people it seems.

  2. Astravogel says:

    I have a dream. If half the Government employees, especially
    those that don’t pay taxes, quit or were fired, would anyone notice?

  3. GetBackJack says:

    After a decade reading the relevant and sometimes side-bar Court cases and precedent Law regarding tax on our personal income; a decade+ teaching myself the peculiar inside-out upside-down and black-is-white language of Law as it pertains to Title 26 of the USC; then several decades arguing withe and learning from very bright people on both sides of the issue of federal tax on our personal income, and even a few years flirting with ex-pat status and maybe even “tax-protester” status I finally had that God-awful eye-popping Holy Shiat gestalt moment where I “got it” ….

    …. the federal apparatus claim to tax our personal income from whatsoever source derived is legitimate if

    …. and it’s a huge IF and requires even more study….

    …. the tax demanded upon our personal income is based on how we take our compensation, what form hat money is denominated in.

    Our money – yours and mine – is Constitutional, and defined by the Coinage Act of 1792.

    Their money is defined by the Federal Reserve Act of 1913.

    Use their money and you abide by their rules. Use your money, abide by the Constitution.

    Their money, their rules.
    Our money, our rules – meaning – the Constitution.

    Their rules began with the crime of 1873, after cementing their power in Washington by crushing the Confederacy and any further armed opposition – the Coinage Act of 1873 which demonetized silver. Note in the origins of “our” money the value of silver and gold respectively balanced one another for a stable currency. Then came the Coinage Act of 1965 which eliminated the circulation of metals altogether.

    Etc et al inter-alia

    Meaning, by eliminating Our Money Washington has eliminated the Constitutional balance of power and substituted a faux currency they print at their leisure and or which they bill us, much like Communists billing a family for the cost of the bullet they used to murder dear old Dad.

    Which is why it does not surprise m that Federal employees owe taxes and that the Internal Revenue Service is lax about collecting it …

    for the children of the king never pay the tax the king lays upon his chattel.


    PS – I will give you whichever in my two hands you choose. One hand holds a Twenty Dollar gold piece, the other a Twenty Dollar federal reserve note. You may have either. Which do you want?

  4. Mithrandir says:

    PARTY MEMBERS ARE DELINQUENT IN PAYING BACK TO THE PARTY….somehow me thinks there is no punishment on the horizon for these people.

    As I have said before, “Unless you fire, fine, and imprison public workers at every level for abusing the Constitution and rules of public trust, there is no reason why they need to respect either of them.” –We have such incredibly low standards for our humble servants, it’s no wonder they literally get away with murder (see: Ted Kennedy).


    Now, a municipality and its elected representatives can each face a fine of $5,000 for violating the state law by not only enforcing a local firearms ordinance, but by simply keeping it on the books.

    That’s right. It’s not the NRA’s job to run around and force municipalities to obey the state Constitution, only to see the same people enact a slightly different gun law the next day. The same should be applied to the entire USA. You violate the Constitution and our rights, we are not going to spend 10 years and $2 million taking it to the Supreme Court, you are going to sit in prison buddy. –my G*d, when will we be liberated from our oppressors……..

    • GetBackJack says:

      well done, Mith

    • Mithrandir says:

      *UPDATE* Man Held in Solitary Confinement 2 Years After DWI Gets $22M

      Who is going to be fired, fined, and imprisoned for criminal and gross negligence costing the tax payers $22 million? Maybe fired, definitely not fined or imprisoned.

      It’s no coincidence that the 3 most corrupt entities in America right now can basically investigate themselves: police, courts, politicians. –I feel VERY SORRY for the good people in these professions who are trying to clean up our streets and do a good job, but without independent oversight and punishment, the cancer envelops them as well.

      (please don’t inform me of the obvious fact that police & fire commissions investigate police, and the state bar investigates court officials, and ethics committees investigate politicians. As I have learned in my long life, it’s the fox watching the hen house. And if they did their jobs well, we wouldn’t have so much corruption in the first place)

    • GetBackJack says:

      Mith, that triumvirate is known correctly as a circle – (blank)

  5. River0 says:

    These are the worst of the worst, those who violate their basic oath and corrupt the system from within. It’s the oldest form of corruption there is; those who make and enforce the laws violate them. Jesus railed against the Temple priests, the Pharisees and Sadducees, who laid laws on others that they violated themselves. Their end will be terrible and eternal.

  6. BigOil says:

    A billion in unpaid taxes by federal employees…a billion in taxes owed by Warren Buffett…pretty soon you are talking about real money.

  7. wirenut says:

    Very astute GBJ! This could well define what’s, your’s, mine, and their’s. If you don’t play with their toy’s, you don’t have to live by their rules. Outstanding! Now ya, got me busy!

  8. Kytross says:

    What gets me is why don’t they report this as an average? For instance, if you average the 1.6 billion owed by the 2.1 million retired military, you will realize tehy owe an average of $761.90.

    Now compare that to the $23,165.83 average owed by the 36 staffers in the West Wing. Or the average of $8,565.21 owed by 4,600 civilian Pentagon Employees.

    Once again, instead of giving us this information in a way that was easy for us to relate to and understand, the media has presented the information in a manner that obfuscates the facts in favor of whatever point they’re making at the time.

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