A Stitch in Haste

As with any tax return, the interesting details aren't necessarily on the main form...

The Internal Revenue Service expects to lose more than $37 million by using private debt collectors to pursue tax scofflaws through a program that has outraged consumers and led to charges on Capitol Hill that the agency is wasting money for work that IRS agents could do more effectively.

...but more often on the attachments buried underneath:

Three firms were awarded contracts: Pioneer Credit Recovery, based in the western New York district represented by Rep. Thomas M. Reynolds (R), who supported the program and recently announced his retirement; the CBE Group of Waterloo, Iowa, the home state of Sen. Charles E. Grassley (R), who helped create the program; and Linebarger Goggan Blair and Sampson, a law firm based in Texas, home to President Bush.

Pioneer Credit employees have given congressional candidates and political action committees $117,450 since 1995, including $16,250 to Reynolds. CBE Group employees have given $9,372 during that period, including $2,500 to Grassley. Linebarger Goggan, one of the nation's largest collection agencies, has extensive government ties. The firm, its employees and their spouses have given PACs and federal candidates in both parties $423,260 since 1995.

The notion of the government retaining private debt collectors is not by itself an abomination, any more than is hiring private vendors to run cafeterias in government office buildings or army bases. The abomination does not even necessarily derive from the net losses — which could, hypothetically, be attributed to start-up costs and the like.

The unarguable scandal here is instead the fact that these three collection agencies (sorry, two collection agencies and one "law firm" — with emphasis on the air quotes) simply bought a federal contract from two powerful members of Congress (powerful at the time, that is). Apparently no competitive bidding, no minimum performance requirements, no real-time oversight. Just grease some politicians' palms and enjoy the feast. At least until the next election.

And still liberals think we should turn over the entire health care sector to political people and political processes like this (or this). Because, of course, only Republican politicians sell their votes and power, right?

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P.S. Did someone say "Grassley"?