IRS To pay out $70M in bonuses

[ATX_Shawn]

So Cruz is calling for the abolishment of the IRS.. You guys think he's just ranting or is there a possibility of this actually happening. It would be a huge step towards smaller government. Which is why I doubt its feasible. Senator: IRS to pay $70M in employee bonuses

 

[benenglish]

It's amazing how many issues can be touched upon in just a few lines.

First, Cruz is calling for abolishment of the IRS. Yes, that's possible. You just throw away all the letterhead, change all the signs, think up a new name for "the place that oversees tax collection", and the "IRS" will have been abolished. It's not just possible, it's simple.

Until Cruz and everyone else pass and implement a completely different system of taxation in this country, however, it will still be the same agency doing the same stuff. When Cruz makes available (I haven't been able to find the text of the petition he wants everyone to sign) his plans to replace the tax system, not just the agency, we're getting nowhere.

Second, the bonuses. It appears from the article that the current contract between the IRS and the NTEU is expired and being renegotiated. The IRS contract with its employees remains in effect during renegotiation. The IRS cannot function without the contract in place since it provides much of the structure of the organization.

Unfortunately, the renegotiation process can take years. During that time, everyone still abides by the contract. The contract requires that people who get a certain level of annual evaluation get a bonus. Period. The agency is stuck with it whether they or Senator Grassley or anyone else likes it or not. I doubt anyone is going to seriously propose that the IRS management (or any government agency management) go rogue and simply stop paying attention to its contracts.

Ever since the Air Traffic Controllers debacle, every federal contract with their labor unions remains in effect while it is being renegotiated. The alternative is chaos.

 

[ATX_Shawn]

Hmm... well I hope to see a plan soon. Otherwise this all sounds like an attempt to rally some votes without doing anything.. something I don't expect of Cruz, but I wouldn't put it past any politician.

 

[London]

Second, the bonuses. It appears from the article that the current contract between the IRS and the NTEU is expired and being renegotiated. The IRS contract with its employees remains in effect during renegotiation. The IRS cannot function without the contract in place since it provides much of the structure of the organization.

Unfortunately, the renegotiation process can take years. During that time, everyone still abides by the contract.

So the NTEU wrote their contract in a way which makes it impossible for them to lose anything; at worst they will deadlock until new bonuses and perks can be added. What moron agreed to sign this?!

 

[deemus]

Political posturing. No, not simple to abolish the IRS. We have a gazillion lines of tax code, and maybe a million employees. There is no simple way to rework that system, much less completely remove it and get a workable replacement. As much as most people would support it, it won't happen.

Kind of surprised at the bonuses. They laid off around 10K workers this year. Good news for the potential audited though. Fewer people to do those audits.

 

[benenglish]

Otherwise this all sounds like an attempt to rally some votes without doing anything...

Bingo!

 

[benenglish]

...the IRS...maybe a million employees.

At the biggest, the IRS had ~130K employees. Now I think the number is under 100K.