Monday, June 23, 2008

PAYING FOR THE “STIMULUS” REBATE ELECTION YEAR BRIBES

The Government Accountability Office (GAO) issued a report on June 19th on "Tax Administration: Data on the Effects of the Economic Stimulus Program on the Internal Revenue Service's Telephone Service and Costs" (GAO-08-916T). According to the report’s summary (emphasis is mine).
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The costs for implementing the economic stimulus legislation may be up to $862 million. IRS received a supplemental appropriation of $202 million for implementing the economic stimulus legislation. The Social Security Administration received a supplemental of $31 million and the Financial Management Service received a supplemental of $64 million. The reallocation of hundreds of IRS collections staff to answering taxpayer telephone calls will also result in up to $565 million in foregone enforcement revenue, according to IRS estimates.”
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As Key Bell of DON’T MESS WITH TAXES put it in a post on this subject, “administering the stimulus payments is likely to cost the agency, and the U.S. Treasury, much more than all our spending of the checks will recoup.”
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The report also discusses the effects of the Economic Stimulus Act of 2008 on the Internal Revenue Service's (IRS) telephone service.
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Demand for telephone assistance related to the economic stimulus legislation has been unprecedented, according to IRS. For the week ending May 24, volume was almost six times greater than the same week last year. Despite reallocating staff from collections work to answering stimulus-related calls, the percent of callers waiting to speak with an assistor who got through has declined markedly to 39 percent for the week ending May 24 compared to 80 percent for the same week last year.”
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What a mucking fess! And we, and the IRS, still have to look forward to the millions of errors regarding the rebates that will no doubt be made on 2008 tax returns.
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TTFN

1 comment:

the bfs said...

we will see how well the economic stimulus package helps us later in the year. while we are getting a boost in spending confidence now, what will happen later in the year when the stimulus money is all gone.

i have been blogging about this for the past month and i will continue my year long mission to blog about the economic stimulus package. 600 dollars divided by 365 days is a buck64aday.

i am the help the goverment never though they would get. I am spendning my stimulus a buck64aday.

read my story

www.buck64aday.blogspot.com