The House of Representatives is expected to vote on a bill sponsored by Utah Republican Rep. Jason Chaffetz that would terminate federal employees with “seriously delinquent tax debts.” According to the most recent IRS data, over 100,000 federal employees owe a combined $1.03 billion in taxes.
The number rises to $3.4 billion when retirees and military personnel who have not paid their taxes are included.
If Chaffetz’s bill, H.R. 828, is passed and signed into law by President Barack Obama, “any person who has a seriously delinquent tax debt” would be “ineligible to be appointed or to continue serving as an employee.”
However, “before any such determination” is made, federal employees would have 180 days to demonstrate that the debt is being paid off.
In FY2010, Americans reportedly owed $114 billion in federal taxes. (SEE ALSO: Interior Department looks to hire Twitter user for $115K)
The vote comes as President Obama and Congress debate federal tax rates. Obama has called on Congress to allow the Bush-era tax cuts for couples making over $250,000 annually to expire while congressional Republicans want the cuts for all income brackets extended.