Tag: tax collections
Many people don’t believe you can put the words ‘good will’ and ‘tax collection’ in the same sentence. There is a natural tension there. But in the city of New Haven, CT, there has been a breakthrough that should serve as a model for cities all over the country that are struggling to collect delinquent real estate taxes. In 1994 New Haven’s property tax collection rate was languishing at around 86 percent. Since privatizing the collection of delinquent taxes, it has improved to 94 percent for last year’s collection and is expected to exceed 96 percent this year.
The commissioner of the Internal Revenue Service (IRS) and the president of the union representing IRS employees (NTEU) are on record as being opposed to outsourcing. Even Malcolm S. Forbes in the October 1995 edition of his magazine stated, This idea is a bad one. Sure, enforcers outside the federal government might be more ‘efficient’ and cheaper, but any such savings are not worth the price of this gross invasion of privacy. Negative Trust Flow Beliefs such as these gave birth to a nationwide study to determine if the public perceives a difference in trust where the collection of taxes is handled by a U.S. government official versus outsourcing the process to a private collector.